3,700 per cent returns in just 3 years: This company plans to Invest Rs 400 crore to expand capacity!
The company has delivered exceptional returns of 96 per cent over the past year and returns of 3,726 per cent over the past 3 years.
CG Power & Industrial Solutions is a multinational corporation that offers comprehensive solutions for the efficient and sustainable management and application of electrical energy. Its wide range of products, services, and solutions cater to utilities, industries, and consumers. The company operates in two primary business segments: Power Systems and Industrial Systems.
CG Power and Industrial Solutions, plans to invest Rs 400 crore over the next two years to expand its manufacturing capacity across various plants. The aim is to remove bottlenecks, modernize existing facilities, and add new capacity. The company also has a goal to increase the revenue contribution from exports from 5 per cent to 20 per cent within the next four to five years.
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This expansion strategy aligns with their focus on capacity, exports, and technological advancements. CG Power achieved consolidated revenue of Rs 6,973 crore in FY23, representing a 27 per cent growth over FY22. The company prepaid its remaining term loan, redeemed outstanding NCDs, and became debt-free. India Ratings upgraded their long-term rating to 'AA' and short-term rating to 'A1+'.
The company has delivered exceptional returns of 96 per cent over the past year and returns of 3,726 per cent over the past 3 years. Additionally, the company has a ROCE of 61.2 per cent and a ROE of 54.4 per cent. Moreover, the company has a dividend payout ratio of 24 per cent.
On Friday, shares of the company plunged by 0.96 per cent to trade at Rs 386.40.
Investors should keep a close eye on this multibagger stock.