Jul. 2 at 5:02 PM
$CGPOWER.NSE
Fundamental View-
$CG Power & Industrial Solutions Ltd., part of the Murugappa Group, is a leading player in the electrical equipment and industrial automation space, with a strong presence in power transmission, distribution, and industrial solutions across global markets.
The company delivered robust performance in FY24 with consolidated revenue of ₹8,381 crore and net profit of ₹820 crore, reflecting solid operational efficiency, margin expansion, and prudent working capital management. CG Power enjoys a near debt-free balance sheet, providing strong financial flexibility, while its order book reached an all-time high of over ₹9,500 crore as of March 2024, offering clear revenue visibility for the coming quarters.
Margins have steadily improved, driven by operational discipline, premium product mix, and strategic pricing. The company is actively focusing on industrial automation, energy-efficient solutions, and expanding its global footprint, capitalizing on rising global demand for electrification and infrastructure upgrades.
Under the leadership of the Murugappa Group, governance standards and operational strength have significantly improved, positioning CG Power to benefit from India’s infrastructure push, smart grid initiatives, and the growing global focus on industrial automation and energy efficiency.
Technical View-
As observed on the daily chart, the stock continues to trade in a positive trend and was holding above its 14-day EMA until yesterday.
However, some mild profit booking was seen today, with the stock opening at ₹682.00, making a high of ₹683.05, a low of ₹661.50, and closing at ₹666.10. Notably, on June 13, the stock made a low of ₹650.00 and showed a strong recovery, followed by a recent high of ₹693.50 on July 1. On the weekly chart, the stock is comfortably holding above its 14-day EMA, with the ₹641.00 level acting as a strong support zone around the 55-day EMA. The MACD and RSI indicators reflect positive momentum, suggesting the stock is poised for a potential pullback rally. From a technical perspective, any dip towards ₹650–660 could provide a favourable entry opportunity, with ₹625.00 acting as a strong stop-loss for holding positions. On the upside, the stock has the potential to retest and possibly surpass the ₹700.00 mark in the near term.
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