Rs 4,319 crore order book: This multibagger power company reports a 57 per cent increase in net profit; gains 4,000 per cent in three years!

Shares of the company have gained more than 30 per cent in the last six months.

On July 27, 2023, CG Power and Industrial Solutions Limited has reported results for the first quarter ended June 30, 2023 (Q1FY24). The revenue of the company for Q1FY24 stood at Rs 1847.00 crore which grew by 14.08 per cent YoY. The operating profit of the company stood at Rs 287.54, growing 46.97 per cent YoY while the PAT of the company grew by 57.78 per cent YoY staying at Rs 197.05 crore.

During FY23, the order intake at the standalone level improved by 20 per cent to Rs 78.3 billion, with healthy order inflows across both power and industrial segments. In end-March 2023, CG Power’s unexecuted standalone order book stood at around Rs 43.2 billion (FY22: Rs 36.8 billion), providing revenue visibility of around 66% of standalone FY23 revenue. The order book is fairly diversified across segments, with motor, railways, transformers, and switchgear businesses contributing 20 per cent – 30 per cent each.

CG Power, part of the Murugappa group, has two segments - power systems and industrial systems. The power systems segment manufactures electrical products such as transformers, switchgear, and circuit breakers, which find application in power transmission.

On Thursday, the stock opened at Rs 406.95, with a high and low of Rs 406.95 and Rs 391.35. The stock closed trading at Rs 397.05, down by 0.77 per cent.

In the last one year, the shares of the company have given more than 80 per cent returns and in the last three years, the stock gained about 4,167 per cent returns. Investors should keep a close eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.