CGPOWER

📰 Recent Developments & Highlights

📰 Recent Developments & Highlights CG Power has been actively pushing into semiconductors and chip packaging through its subsidiary CG Semi, including launching India’s first outsourced semiconductor assembly & test (OSAT) facility in Sanand, Gujarat. The company is investing ~₹7,600 crore in building two advanced facilities (G1, G2) to expand its manufacturing footprint in the semiconductor space. There are talks that CG Semi is in discussions with global semiconductor firms (fabless / IDMs) to partner for packaging and test operations at the Sanand facility. In light of the semiconductor push, several brokers have turned bullish: • Morgan Stanley initiated coverage with an “Overweight” rating and gave a target of ₹799. • Nomura sees ~26% upside potential based on the OSAT investment announcement. The stock has seen strong momentum: it rallied ~12% in just three sessions, breaking out of a ~3-month consolidation. In terms of fundamentals: • The company is relatively debt-free. • It has a strong return-on-equity track record. • Promoter holdings have dipped slightly in the recent quarter. On valuation: the stock trades at a high multiple of book value and has a high P/E ratio, reflecting high growth expectations baked in. Market experts have flagged CG Power as one of the “top picks” in the capital equipment / industrial space amid a broader CAPEX cycle in India.