CG Power Hits Record High After Nuvama Sets Second-Highest Price Target Post Q4 Results
The relative strength index was at 71.13, indicating that the stock may be overbought.
Shares of CG Power & Industrial Solutions surged 7% on Tuesday to an all-time high after Nuvama Research upgraded its target price, citing its outlook for order intake-led top-line growth and operating-margin expansion. The brokerage maintains a 'buy' rating for the stock and raised the target price to Rs 640 apiece from Rs 520 earlier, implying a potential upside of 17.15% from the previous close.
The price target by Nuvama is the second highest so far among the eight analysts tracked by Bloomberg.
CG Power Q4 FY24 Earnings Highlights (Consolidated, YoY)
Revenue up 15% at Rs 2,191.7 crore versus Rs 1,902.8 crore.
Ebitda up 3.1% at Rs 283.8 crore versus Rs 275.3 crore.
Margin narrows to 12.95% versus 14.47%.
Net profit down 45% at Rs 233.8 crore versus Rs 426.2 crore.
The company's profit in the fourth quarter of financial year 2024 was in line with the Street estimates despite a 13% operating margin as motors’ destocking continued, according to Nuvama. It also raised the earnings-per-share estimates for the current and the next financial year by 5% and 17% respectively on the back of order intake-led top-line growth and operating expansion to 15.4% and 16%.
CG Power's stock rose as much as 7.08% during the day to Rs 585 apiece on the NSE. It was trading 4.92% higher at Rs 573.20 per share, compared to a 0.72% decline in the benchmark Nifty 50 at 1:29 p.m.
The share price has risen 26.17% on a year-to-date basis and 45.08% in the last 12 months. The total traded volume so far in the day stood at 4.64 times its 30-day average. The relative strength index was at 71.13, indicating that the stock may be overbought.
Five out of the eight analysts tracking the company have a 'buy' rating on the stock and three suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 2.2%.
