Rs 5 lakh to Rs 1.21 crore in just 2 years; this company turned its investors into millionaires!

In FY22, the company delivered a stellar ROE and ROCE of 90.99 per cent and 84.18 per cent, respectively.

CG Power and Industrial Solutions Ltd, a motor and generator manufacturing company, has generated multibagger returns for its shareholders in the last two years. During this period, the company’s share price appreciated by 2340 per cent, going from Rs 8.32 on July 21 2020 to Rs 203 on July 15 2022. With this price movement, the company has heavily outperformed the markets.   

In the last 1 year, the company’s net revenue has increased 87.69 per cent YoY to Rs 5561.40 in FY22. Similarly, the PBIDT increased by 206 per cent to Rs 697.20 crore. The PAT during the year stood at Rs 913.42 crore, a de-growth of 28.6 per cent YoY, owing to a higher base than the previous year (due to an exceptional gain in FY21).  

In FY22, the company delivered a stellar ROE and ROCE of 90.99 per cent and 84.18 per cent, respectively.  

So, what is the secret of this performance? 

A change in management.  

In November 2020, CG Power and Industrial Solutions was acquired by Tube Investments (TI) of India. FY22 was the first full year of operations under the new management. As a subsidiary of TI and part of the Murugappa Group, the company has been led by the Group’s strong ethics and governance. Within a month of taking over the company, the new management initiated several steps to revive the operations of the business. 

Owing to this, the company witnessed a complete operational and financial turnaround of the company. All the businesses bounced back and performed to their potential, regaining the confidence of customers and vendors. Moreover, during the year, several legacy issues were resolved, which led to an improved financial rating of the company.  

CG Power and Industrial Solutions Limited is an Indian multinational company engaged in the design, manufacturing, and marketing of products related to power generation, transmission, and distribution & Rail Transportation. The company’s diverse portfolio ranges from transformers, switchgear, circuit breakers, network protection & control gear, project engineering, HT and LT motors, drives, Power Automation Products and turnkey solutions in all these areas. 

At 1.09 pm, the shares of CG Power and Industrial Solutions Ltd were trading at Rs 204 apiece.