CG Power and Industrial Solutions Ltd.
Infrastructure · NSE
52-week range
₹524 – ₹876
From 52w high
-0.3%
RSI (14)
73.8
vs SMA 50 / 200
↑ 50 · ↑ 200
CG Power and Industrial Solutions (Rs 873.55) is an Infrastructure-sector electrical equipment manufacturer that has delivered 46% price appreciation over the past year, trading above its 50-DMA (Rs 742.94) and 200-DMA (Rs 701.84). The stock carries the highest PE (113.8x) among its peer group, underpinned by a 5-year earnings CAGR of 30.5% and an ROE of 19.56% that ranks first among peers with reported figures. Rising debt and an RSI of 73.76 are the primary tensions against the growth backdrop.
- ✓5-year revenue and earnings CAGRs of 25% and 30.5% respectively indicate sustained top-line and bottom-line expansion over a multi-year period.
- ✓ROE of 19.56% is the highest among the 6 Infrastructure peers where data is available, with ROE above 15% in 4 of the available historical years.
- ✓Price is 17.6% above the 50-DMA (Rs 742.94) and 24.5% above the 200-DMA (Rs 701.84), reflecting broad momentum across both medium- and long-term moving averages.
- ✓FY2026 results included record sales and margin expansion alongside a growing order backlog, per contemporaneous earnings reports released May 6, 2026.
- ✗PE of 113.8x is the highest in the peer group, more than double BEL (53.7x) and more than three times LT (34.0x), concentrating valuation risk in continued earnings delivery.
- ✗Debt-to-equity of 1.44 is on a rising trend, and FCF was positive in only 3 of the available historical years, raising questions about whether growth is being funded sustainably.
- ✗RSI of 73.76 indicates overbought conditions; the stock has already experienced a 26% drawdown from its 52-week high within the trailing period despite the 46% annual gain, illustrating significant intra-year price swings.
- ✗Quality score of 45 ranks 4th of 6 Infrastructure peers, indicating the composite model places CGPOWER in the middle of the peer field rather than at the top despite its ROE leadership.
- ·Q4 and full-year FY2026 results reported on May 6, 2026, cited record sales, margin expansion, and a robust order backlog; management also referenced strategic expansion and capital-raising activity during FY26.
- ·All 4 recent news items (May 6, 2026) carried positive sentiment, with headlines highlighting FY2026 performance and a constructive FY2027 outlook; the news flow is concentrated in a single post-results window.
- ·Mean analyst rating of 2.29 across 17 analysts (1-5 scale, lower = more constructive) reflects a distribution that skews toward the constructive end of the scale; forward PE of 63.8x implies consensus embeds continued high earnings growth.
- ?At a PE of 113.8x and forward PE of 63.8x, what specific earnings growth rate over the next 3-5 years would be required to bring the valuation in line with the Infrastructure sector median, and how does that compare to CGPOWER historical delivery?
- ?Does the rising debt-to-equity trend reflect investment in capacity to fulfil the order backlog, or does it indicate the business model requires structural leverage to generate its reported ROE?
- ?How concentrated is the order backlog by client or sector (e.g., government, defence, private industrial), and what would the financial impact of a slowdown in any single segment look like?
- ?Given that the stock has recorded a 26% drawdown from its 52-week high while also being up 46% over the year, what has historically driven the sharp intra-year corrections and how have they resolved relative to the fundamental trajectory?
PE
113.8
Forward PE
63.8
ROE
+19.6%
Profit margin
+9.7%
D/E
1.44
Dividend yield
+0.1%
Quality score
45/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.