CG Power and Industrial Solutions Ltd.
NSE: CGPOWERCG Power and Industrial Solutions Ltd.: A 30-second snapshot
CG Power and Industrial Solutions (Rs. 894.35) has delivered 30.3% price appreciation over the past 12 months and sits 5.3% below its 52-week high, trading above both its 50-DMA (Rs. 791.66) and 200-DMA (Rs. 717.57) with an RSI of 60.8. The stock carries the highest trailing PE (116.0x) among its 6 Infrastructure peers benchmarked, against a 5-year earnings CAGR of 30.5% and revenue CAGR of 25%. Debt-to-equity stands at 1.44 on a rising trend, while free cash flow was positive in 3 of the available historical years.
P/E
116.0
Forward P/E
65.2
ROE
+19.6%
Debt / Equity
1.44
Profit Margin
+9.7%
Div. Yield
+0.1%
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
59/100
News
5 headlines · 0 positive · 1 negative
CG Power and Industrial Solutions Limited Reports Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
CG Power and Industrial Solutions March-quarter consol net PAT 3.65 billion rupees - marketscreener.com
marketscreener.com
CG Power and Industrial Solutions' (NSE:CGPOWER) Solid Earnings May Rest On Weak Foundations - simplywall.st
simplywall.st
Coal India, Crompton Greaves, CG Power: Stocks to trade — Check targets, stop loss & more - Business Today
Business Today
CG Power share price: Buy, sell or hold? Targets by Nomura, others - Business Today
Business Today
Recent context
- ·Q4 FY26 results (consolidated PAT Rs. 3.65 bn for the March 2026 quarter) were reported in early May 2026; full-year earnings were also disclosed in the same reporting cycle.
- ·A simplywall.st piece published 14 May 2026 flagged that the strong Q4 earnings may rest on weak accounting foundations — the news sample of 5 items is sparse, so breadth of coverage is limited.
- ·Business Today coverage from 7-8 May 2026 included post-results commentary from named broker Nomura alongside other analysts, in the context of near-term price level discussions.
Strengths
- +5-year revenue CAGR of 25% and earnings CAGR of 30.5% represent the top-line and bottom-line growth profile among a peer set that includes BEL, L&T, ABB India, Cummins India, and Siemens Energy India.
- +ROE of 19.56% ranks 3rd of 6 Infrastructure peers with data available, above L&T (16.95%); ROE has been above 15% in 4 of the available historical years.
- +Price up 30.3% over 12 months and 23.1% over 3 months; current level (Rs. 894.35) is 12.9% above the 50-DMA (Rs. 791.66) and 24.7% above the 200-DMA (Rs. 717.57), with the 52-week drawdown at only -5.3%.
- +Mean analyst rating of 2.18 across 17 analysts (1-5 scale, lower = more constructive); nearest identified support levels are Rs. 804.6 and Rs. 794.1.
Weaknesses
- −Trailing PE of 116.0x ranks last (most expensive) among all 6 Infrastructure peers; forward PE of 65.2x still requires sustained high earnings delivery to justify current pricing — any earnings miss compresses this headroom sharply.
- −Debt-to-equity of 1.44 is on a rising trend and FCF was positive in only 3 of available historical years; composite quality score of 45 ranks 5th of 6 peers, below sector median, with CUMMINSIND (69), ENRIN (51), BEL (49), and ABB (47) all scoring higher.
- −A May 2026 research piece raised concerns that Q4 FY26 reported earnings may rest on weak accounting foundations; this claim is not independently verifiable from the structured data available and remains an unresolved flag.
- −Profit margin of 9.71% and dividend yield of 0.14% indicate most earnings are being retained or deployed rather than distributed, consistent with the rising leverage trend and ongoing investment phase.
Open questions
- ?Can the 5-year earnings CAGR of 30.5% be sustained at a scale that justifies a trailing PE of 116.0x, and what order-book or contract-win metrics would need to hold for the forward PE of 65.2x to compress toward the peer median?
- ?Does the rising debt-to-equity (now 1.44, on a rising trend) reflect capex investment in structural capacity, or is leverage expanding to fund working-capital needs — and how has FCF trended in the most recent 2 fiscal years versus the 3-of-available-years positive FCF figure?
- ?What specific accounting line items or one-time items did the May 2026 simplywall.st analysis identify as potentially overstating reported earnings, and how material are they relative to the Rs. 3.65 bn Q4 PAT figure?
- ?How does the company's revenue concentration across government infrastructure and power-sector capex affect the predictability of future earnings, and what is the reported order-book coverage ratio relative to current annual revenue?
Peer comparison: Infrastructure
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CGPOWER | CG Power and Industrial Solutions Ltd.You're viewing | 116.0 | +19.6% | 45 |
| Industry avg | across 5 peers | 69.4 | +24.7% | 48 |
| CUMMINSIND | Cummins India Ltd. | 66.6 | +29.5% | 69 |
| ENRIN | Siemens Energy India Ltd. | 101.1 | — | 51 |
| BEL | Bharat Electronics Ltd. | 49.1 | +27.6% | 49 |
| ABB | ABB India Ltd. | 95.9 | — | 47 |
| LT | Larsen & Toubro Ltd. | 34.3 | +16.9% | 24 |
Technical state
Current price
₹894.35
SMA 50
₹791.66
SMA 200
₹717.57
RSI (14)
60.8 (neutral)
From 52w high
-5.3%
1Y return
+30.3%
3M return
+23.1%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highTrailing PE of 116.0x is the highest among all 6 Infrastructure peers benchmarked (BEL: 49.1x, ENRIN: 101.1x, ABB: 95.9x, CUMMINSIND: 66.6x, LT: 34.3x); forward PE of 65.2x implies the market has already priced in sustained above-average earnings growth, leaving limited room for an earnings shortfall.
- mediumDebt-to-equity of 1.44 is on a rising trend; free cash flow was positive in only 3 of the available historical years; composite quality score of 45 ranks 5th of 6 Infrastructure peers, below sector median, reflecting leverage and FCF inconsistency relative to reported profitability.
- lowNews sample covers only 5 items total; one May 2026 piece from simplywall.st questioned whether Q4 FY26 reported earnings rest on solid accounting foundations — this cannot be independently verified from structured data but represents a monitoring point.
- lowPeer comparison is constrained: 1-year price change is unavailable for all 5 peers and ROE is missing for 2 of 5 peers, limiting cross-sectional ranking to PE, quality score, and partial ROE observations only.
Cross-section contradictions
- 5-year earnings CAGR of 30.5% and ROE of 19.56% (ranked 3rd of 6 peers with data) reflect strong reported profitability, yet the composite quality score of 45 ranks 5th of 6 — the model penalises rising leverage and FCF inconsistency, dimensions where CGPOWER lags despite strong headline growth metrics.
- Price is up 30.3% over 12 months and is only 5.3% below the 52-week high, trading comfortably above both the 50-DMA (Rs. 791.66) and 200-DMA (Rs. 717.57) — yet a May 2026 independent research piece flagged potential weakness in the accounting foundations underlying the reported earnings, a concern not yet reflected in price action.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days