CG Power share price zooms 6.5% to all-time high after Q4 earnings; good time to buy?
CG Power and Industrial Solutions, part of Murugappa Group, jumped 6.50% in today's intraday trade, reaching a new all-time high of ₹582.80 apiece after the company posted in-line performance for the March-ending quarter. The company's order inflow showed robust growth, increasing by 45% year-on-year to ₹6,276 crore, contributing significantly to the sharp rise in share prices today.
The company reported a 15% year-on-year growth in revenue in Q4, in line with expectations set by Kotak Institutional, despite a modest 3% year-on-year growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and a 4% growth in PBT (Profit Before Tax) excluding other income. Also Read: Sebi rejects NSE’s proposal to extend stock market trading hours The PBT remained consistent with expectations, experiencing 7% year-on-year growth due to unexpectedly high levels of other income.
Full-year revenue, EBITDA, PBT and PAT grew 15%, 13%, 16% and 14%, respectively. Analysis from Kotak Institutional Equities indicates that while the power systems segment exhibited high margins, this was offset by weaker profitability in industrial systems.
However, the industrial systems segment contributed significantly to the strong order inflows, particularly driven by the railway business. The company anticipates 40% growth in its railway business, which currently contributes 15% to its overall revenues, in the upcoming year.
Additionally, it foresees growth in the power systems business, which constitutes 30% of revenues, as it aligns with its existing capacity constraints, which are expected to be resolved by FY2026. Also Read: Marico shares jump over 8% after Q4 results; Should you buy the stock? On the power systems business, it
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