Only buyers seen in Multibagger CG Power; have you invested in it yet?

If you wanted to know what a change in promoter can do to the underlying business; have a look at CG Power. The shares of CG Power have never looked back ever since the new promoters have taken the charge of the operations of the company in 2020. 

The shares of CG Power have jumped higher by a whopping 2572 per cent since the lows it hit in March 2020. What is more interesting is that after a stellar gain of over 2500 per cent the stock refuses to halt its rally. One of the best performing multibaggers in recent years CG Power, was locked in the upper circuit on Tuesday after the share price of CG Power jumped higher by ~5 per cent. CG Power managed to close at its day’s high price of Rs 156.35 per share, indicating buying interest in the counter. The stellar rally in CG Power is supported by the outstanding results declared by the company where the company declared net profit of over Rs 144 crore versus a loss of Rs 37 crore in the previous quarter. 

The positive sentiment in CG Power in Tuesday trading session can also be attributed to the massive jump in share price of Tube Investment of India Ltd. The shares of Tube Investments of India Ltd jumped higher by more than 17 per cent in Tuesday’s trading session. The shares of Tube Investment closed at record highs thus displaying a bullish price volume breakout. 

Tube Investment of India holds 52.61 per cent in CG Power. The Q2FY22 results for Tube Investments have also been outstanding with the company declaring revenue for Q2FY22 at Rs 1,667 crore compared with Rs 1,087 crore in the similar period previous year. PBT (before exceptional items) was of Rs.164 Cr as against Rs.129 Cr in the same period previous year. ROIC (annualized) at 48% for the quarter ended 30th September 2021 compared with 43% in the previous year same period. 

The shares of CG Power are up by 23.55 per cent in one month alone and in 2021 the stock is up by 250 per cent. In one year, the shares of CG Power are up by more than 400 per cent. 

FIIs have increased holdings from 10.7 per cent to 11.89 per cent in September quarter while the mutual funds have decreased their holdings from 4.05 per cent to 3.46 per cent in September 2021 quarter. The promoters have decreased their holdings from 53.25 per cent to 52.7 per cent in September quarter. The promoter pledge remains unchanged at 95.8 per cent of holdings in September 2021 quarter. 

With a successful turnaround in place and improving business environment backed by one of the most successful business houses in India; CG Power promises to surprise on the upside while investors enjoy the stellar returns with utter disbelief!