CG Power and Industrial Solutions Limited

Industrials — Electrical Equipment & Parts · NSE

₹846.00+₹28.00 (+3.42%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, negative free cash flow, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of CG Power and Industrial Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

CG Power and Industrial Solutions Limited, together with its subsidiaries, provides various solutions in India and internationally. It operates through the Power Systems, Industrial Systems, Semiconductors, and Others segments.

IndustryElectrical Equipment & Parts

SectorIndustrials

Annual revenue₹12,280 Cr

How does it make money?

Turns over ₹12,280 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation.

EBITDA margin14.9%

Net margin9.8%

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Some evidence

ROCE of 19.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.3%

ROE15.1%

Peer median ROE17.1%

What is the outlook?

20 analysts covering the stock expect revenue to grow about 29.4% and earnings to grow about 37.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+29.4%

Est. earnings growth+37.8%

Analysts20

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +78% while net margin moved -30% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+78%

Margin effect-30%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 106.7x is demanding — it needs sustained high growth to justify
✗ P/E is 21% above its own historical median of 87.9x — expensive by its own standards
✗ P/B of 16.72x is a steep premium to book

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

106.7x

3Y Median

87.9x

40 monthly readings · mean 93.2x · range 61.4x–149.5x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 21% above its 3y median of 87.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 20% above the peer median of 88.8x.

vs. its own history

Expensive

87.9x median over 40 months · +21%

vs. sector peers

Expensive

88.8x median of 3 peers · +20%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

106.7x

P/B

16.72x

EV/EBITDA

72.7x

PEG

13.66

Dividend Yield

0.15%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention7

Debt is rising
Total debt is up 616% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 53.8% to 15.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 55.6% to 19.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 125% against revenue growth of 78% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 193% against revenue growth of 78% — stock may not be moving.
Valuation above its historical average
At 106.7x the stock trades 21% above its own median of 87.9x.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 616% over 3 years, from ₹17 Cr to ₹119 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 193% against revenue up 78% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹75 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 125% against revenue up 78% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 125% against revenue up 78%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 21% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 53.8% to 15.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.2% CAGR
Latest reported year was 14.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹75 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹1.33 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

106.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

16.72x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹7.93

Profitable

Profitable on a per-share basis

ROE

15.1%

Strong

Strong capital efficiency

ROCE

19.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.45x

Moderate

Moderate leverage

Revenue Growth (YoY)

14.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.15%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹75 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹846

P/E (Forward)

60.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

10.4%

Average

Average margins

Net Margin

9.8%

Average

Average bottom-line conversion

Current Ratio

1.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

873.8 / 881.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,895 Cr	₹7,956 Cr	₹9,815 Cr	₹12,280 Cr	+21.2%
EBITDA	₹1,057 Cr	₹1,205 Cr	₹1,427 Cr	₹1,831 Cr	+20.1%
EBITDA Margin	15.3%	15.1%	14.5%	14.9%	—
PAT (Net Profit)	₹963 Cr	₹1,427 Cr	₹975 Cr	₹1,206 Cr	+7.8%
EPS	₹6.3	₹9.33	₹6.37	₹7.71	+7.0%
ROE	53.8%	47.3%	25.4%	15.1%	—
ROCE	55.6%	37.7%	32.1%	19.3%	—
Total Debt	₹17 Cr	₹18 Cr	₹41 Cr	₹119 Cr	+92.7%
Free Cash Flow	₹861 Cr	₹794 Cr	₹489 Cr	-₹75 Cr	—

🟢 Revenue has grown at 21.2% a year over 3 years.

🟢 EBITDA has grown at 20.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 14.9% over 3 years.

🟢 PAT (Net Profit) has grown at 7.8% a year over 3 years.

🟢 EPS has grown at 7.0% a year over 3 years.

🔴 ROE has fallen from 53.8% to 15.1% over 3 years (-38.6 pts).

🔴 ROCE has fallen from 55.6% to 19.3% over 3 years (-36.3 pts).

🔴 Total Debt has grown at 92.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹861 Cr to -₹75 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12,668 Cr

Total Liabilities

₹4,469 Cr

Total Debt

₹119 Cr

Cash & Equivalents

₹301 Cr

Operating Cash Flow

₹702 Cr

Capex

-₹778 Cr

Shareholding (proxy)

Institutional Holding

19.7%

Insider Holding

60.0%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹1.3

Ex-Dividend Date

30 Jan 2026

Analyst Consensus

Recommendations

14 Buy · 2 Hold · 4 Sell

Target Price (Mean)

₹942

+11.3% vs CMP

Target Range

₹627 – ₹1,100

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

4 mixed2 general

CG Power and Industrial Solutions (NSEI:CGPOWER) Stock Forecast & Analyst Predictions

Simply Wall Street, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

CG Power Share Price - Live NSE: CGPOWER Stock Price & Chart

Upstox, 16 Oct

CG Power and Industrial Solutions (CGPOWER) Share Price rises 2.69% to Rs 840; market cap at Rs 1,35,947.16 crore

Univest, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

CG Power and Industrial Solutions (CGPOWER.NS) Rises 2.90% to ₹879, Closing In on Resistance - Percent Below MA

siam.in, 02 Oct

CG Power and Industrial Solutions shares jump over 3% in early trade

Moneycontrol.com, 31 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

CG Power Share Price Fall Today: Sector and Peer Context

Univest, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟡Financial HealthAdequate10.9/20

🟡GrowthModest10/20

🟡ProfitabilityModerate8.4/15

🔴ValuationDemanding3.3/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 16% a year21.2% CAGR
✓EBITDA margin holds above 13%14.9%
✗Free cash flow remains positive-₹75 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 16%19.3%