CGPOWER

CGPOWER

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. 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. Warning- ***** *****