CG Power share price has been on an impressive rally, gaining for the fourth consecutive session. On September 3, 2025, the stock hit ₹757.20, marking an increase of 2.41% that day alone. In total, CG Power share price has surged nearly 14% in just a few days, pushing the stock to new highs.
But what’s driving this surge? Is it just hype, or is there solid momentum behind this rise?
Reasons behind the rally in CG ower share price
There are two main factors contributing to the surge in CG Power share price:
- The launch of its semiconductor assembly and test (OSAT) facility.
- Positive analyst ratings from global brokerages, including Morgan Stanley and Nomura.
CG Power’s move into the semiconductor space
The rally really picked up steam when CG Power announced the launch of its OSAT facility in Sanand, Gujarat. This marks a pivotal step for India’s semiconductor ambitions, as CG Power becomes one of the first full-service OSAT providers in the country.
The facility will be run by CG Semi, a subsidiary of CG Power, and the company has big plans. Over the next five years, CG Semi plans to invest over ₹7,600 crore (~$870 million) in two advanced facilities (G1 and G2) in Sanand. The G1 facility was inaugurated in late August 2025, and is designed to process 0.5 million semiconductor units per day. Meanwhile, the G2 facility is expected to come online by 2026 and will scale up production to 14.5 million units per day.
This project is part of India’s push to reduce its dependency on semiconductor imports and develop a self-reliant ecosystem. As the country’s chip demand is expected to exceed $100 billion by 2030, CG Power is positioning itself as an early leader in India’s semiconductor value chain.
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Brokerages turn positive on CG Power stock
Brokerage houses have also joined the rally. Morgan Stanley has initiated coverage on CG Power with an ‘Overweight’ rating and a ₹799 target price. Similarly, Nomura has maintained a ‘Buy’ rating, setting a target price of ₹840 per share.
These ratings have sparked investor confidence, particularly in light of the growing importance of the semiconductor business, which is expected to see substantial earnings growth in the coming years.
CG Power share price: Technical outlook
On the technical front, CG Power share price has broken out of a bullish flag pattern. According to Anshul Jain, Head of Research at Lakshmishree, the breakout confirms institutional interest and indicates that the stock could see a move towards the ₹800 range.
The breakout, combined with strong volume support around the ₹700 mark, strengthens the case for further price appreciation. As long as the stock holds above the breakout zone, it’s likely to maintain its upward momentum.
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CG Power shares rise 12% in three sessions on semiconductor push
Over the last three sessions, CG Power share price has gained 12%, driven by the launch of the OSAT facility and the growing optimism around its semiconductor business. In particular, the stock reached a high of ₹742.75 on the NSE, bolstered by strong trading volumes. Over 65 lakh shares changed hands on the NSE, indicating robust buying interest.
The company is making a significant ₹7,600 crore investment in two semiconductor facilities in Sanand, in partnership with global players like Renesas Electronics and Stars Microelectronics. This marks a major milestone in India’s technological self-reliance in semiconductor manufacturing.
The G1 facility, now operational, will help CG Semi meet growing demand for semiconductors in India. The facility is designed to assemble, package, and test chips, and it has already completed its first Made-in-India semiconductor chip. The G2 facility, expected to come online by 2026, will significantly scale up production.
CG Power’s strong financial performance:
CG Power’s financial results reflect a solid foundation for its stock price rise. Here are the key figures from Q1FY25:
| metric | value |
| Net Profit | ₹267 crore (up 11% YoY) |
| Revenue | ₹2,878 crore (up 29% YoY) |
| Order Intake | ₹5,138 crore (up 62% YoY) |
| Order Backlog | ₹13,072 crore (as of June 30, 2025) |
The company has also posted impressive growth across its traditional business segments like industrial systems and power systems, which continue to perform strongly. Furthermore, the new semiconductor business is expected to be a significant growth driver in the next few years.
CG Power share price: What’s next?
The CG Power share price rally is supported by strong fundamentals and a promising outlook in the semiconductor market. However, there are still risks that investors should be mindful of:
- Competition: Increased competition, especially in CG Power’s traditional business areas like transformers and motors.
- Execution risks: Challenges in executing its new semiconductor strategy.
If CG Power can effectively manage these risks, its stock could see continued growth, particularly as its semiconductor business scales up in the coming years.
Bottomline
In the last six months, CG Power share price has rallied by 26%, and the company’s entry into the semiconductor space is likely to keep it on an upward trajectory. With strong backing from government initiatives, global partnerships, and solid brokerage endorsements, CG Power looks set for further growth.
However, investors need to weigh the potential growth against risks like competition and execution failure in its new business segments. Overall, CG Power share price remains an interesting stock to watch, especially for those willing to take a longer-term view on the semiconductor sector’s expansion in India.
