Shares of CG Power and Industrial Solutions were trading nearly 4% higher and hit a fresh 52-week high after brokerage firm Motilal Oswal initiated coverage on the stock with a ‘buy’ rating, citing strong growth visibility driven by a multi-year capex cycle in the power transmission and distribution (T&D) segment.
The brokerage has set a target price of ₹900 on the stock, implying an upside of over 16% from the previous close of ₹774.
Following the development, CG Power shares rose 3.45% to ₹801.50 as of 12:23 PM on April 20, with the stock also hitting a fresh 1-year high of ₹804.65, indicating strong investor interest backed by sectoral tailwinds.
Motilal Oswal, in its thematic note on the T&D sector, highlighted that India’s power infrastructure is entering a structural capex cycle, with the National Electricity Plan outlining nearly ₹9 trillion investment in transmission and distribution infrastructure through 2032. The brokerage believes that companies like CG Power are well positioned to benefit from rising order inflows and sustained demand visibility.
The note also pointed out that while ordering activity may see near-term moderation due to capacity constraints, demand remains robust, with a recovery expected over the next one to two years as manufacturing capacities expand. This, coupled with global supply shortages and long lead times for power equipment, opens up export opportunities for Indian manufacturers.
Further, the sector continues to benefit from limited competition in high-value segments such as HVDC equipment, where only a handful of players operate, supporting pricing power and margin stability.
Motilal Oswal added that despite valuations not being cheap, the ongoing earnings upgrade cycle and strong domestic as well as export opportunities justify a premium for companies across the T&D value chain, including CG Power.