 "CG Power zooms 6%, hits 52-week high on decent rise in Q4 revenues")
Shares of CG Power and Industrial Solutions soared 6.3 per cent reaching its 52-week at Rs 582.30 a piece on the BSE in Tuesday’s intraday trade. This came after the company saw a 16.7 per cent rise in its total income in the January-March quarter of 2023-24 (Q4FY24) to Rs 2,239.83 crore from Rs 1,917.05 crore in the year-ago period.
The company registered standalone profit after tax (PAT) of Rs 240.59 crore for Q4FY24, slightly higher than Rs 240.23 crore from the corresponding period last year. The company's standalone PAT stood at Rs 216.47 crore in the third quarter.
For the entire year, the standalone PAT increased by 28 percent to Rs 1,004 crore compared to Rs 785 crore in FY23.
The company’s total expenses also surged to Rs 1,932.80 crore in Q4FY24 from Rs 1,654.63 crore in the same period a year ago.
Further, total income for the fiscal year increased to Rs 8,152.24 crore from Rs 7,040.30 crore a year ago.
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According to those at Kotak Institutional Equities, CG Power reported a meaningful miss in Ebitda as stalled market growth and intensifying competition in low-voltage motors more than negated the benefit of improving margin in the power systems segment. Healthy ordering from railways and power systems would help grow the business at a fast pace in FY2025, analysts noted in an result update.
“We cut our estimates by 4-6 per cent for FY 2025-27 and increase FV to Rs400 (from Rs 370) on higher value of the ATMP business, higher medium term estimates and roll-forward to June 2025E DCF-based FV. SELL stays on a rich 75X one-year forward earnings excluding value of the ATMP business,” Aditya Mongia, Deepak Krishnan, and Sai Siddhardha P of Kotak Institutional Equities wrote in a report.
At 10:34 AM, the shares of CG Power were trading 5.96 per cent at Rs 579.90 per share on the BSE. In comparison, the S&P BSE index fell 0.49 per cent at 73,530 levels. The stock is presently trading at a price to earnings multiple of 88.10 times.
CG Power is an Indian multinational company that specialises in the design, manufacturing, and marketing of products related to power generation, transmission, distribution, and rail transportation.