Only buyers in CG Power as stock trades close to its 52-week high

There are only buyers at the counter with no seller willing to part with their holding.   

The bulls are having a ball at D-Street as the frontline indices have gained nearly 1 per cent and are seen trading near the day’s high. The broader markets are also seen buzzing and the testament to this is the strong market breadth. Market breadth is strongly in favour of the advances on Wednesday.   

Among the broader markets, there is one stock that has gained the limelight on Wednesday and that is CG Power & Industrial Solutions. We are just halfway through Wednesday’s trading session and the stock has already registered a volume in excess of 10 lakh. Interestingly, it is locked at the upper circuit limit of the day at Rs 190.70. There are only buyers at the counter with no seller willing to part with their holding.   

The stock has logged a double-digit gain of 11.36 per cent in the month of March and interestingly, it is trading close to its 52-week high of Rs 208.90.   

In Q3FY22, the company showed an all-round improvement in performance, and all the businesses had performed satisfactorily, with improving sales & margins. Sales for the quarter stood at Rs 1,446 crore while the profit before tax was at Rs 161 crore, which is the highest recorded in the last 20 quarters.   

The company completed the long-pending sale of land at Kanjurmarg during this quarter and the entire sale proceeds (Rs 402 crore, including a refund of security deposit) have been received. The proceeds were utilised to prepay the long-term debt of Rs 363 crore.