Apr'25 View on CG Power & Industrial Solutions Ltd

CG Power & Industrial Solutions is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services and solutions in two main business segments, viz. Power Systems and Industrial Systems. • The board has decided to double up PT capacities to 85K MVA from the earlier target of 45k MVA (existing capacity sub-35k MVA), through a Rs700cr capex. • Company highlighted steady progress in its OSAT venture. • Strong order inflows in the quarter at 44% on a yoy basis. • Q3 results a mixed bag with weak on margin and strong on revenues/order inflows. • Consolidated EBITDA missed our/consensus estimates by 7%/9%, primarily on margin weakness in the Industrial Systems segment. • Order inflows were strong at >1.7X sales; reflectsstrength in Railways & Power Systems. • We rollforward to March 2026E-based DCF yields an FV of Rs520 (Rs500 earlier). • SELL stays on expensive valuations, at >60X one-year forward EPS.