UBS has maintained a Buy rating on CG Power and Industrial Solutions Ltd, but has revised its target price down to ₹890 from an earlier level (not specified), implying a potential upside of nearly 30% from the current market price of ₹682.00.
The brokerage highlighted that Q1 order inflows rose 71% year-on-year, reflecting healthy demand momentum. Power segment orders surged 115% YoY, driven by a series of large-scale wins, making it a key growth driver for the quarter. However, industrial orders were weak on a sequential basis, pointing to some cyclical softness in that vertical.
Despite a decline in LT (low-tension) motor volumes, the company implemented a 5% price hike in July, demonstrating pricing power and a commitment to maintaining profitability.
UBS believes margin trajectory will remain the central focus going forward, especially as the mix continues to tilt toward power-heavy orders. The valuation remains attractive given the company’s improving positioning in the power capex cycle.
Disclaimer: The views expressed in this article are those of the brokerage firm (UBS) and do not constitute investment advice. Investors are advised to consult a certified financial advisor before making any investment decisions.
