Buy CG Power and Industrial Solutions, target price Rs 335: Axis Securities

Axis Securities has buy call on CG Power and Industrial Solutions with a target price of Rs 335. The current market price of CG Power and Industrial Solutions is Rs 300.35. Axis Securities recommended to keep stop loss at Rs 285.

CG Power and Industrial Solutions, incorporated in the year 1937, is a Small Cap company (having a market cap of Rs 46003.78 Crore) operating in Electric/Electronics sector.

CG Power and Industrial Solutions key Products/Revenue Segments include Electrical Equipment, Scrap, Income from Eng.Construction Contracts and Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1809.95 Crore, up 6.03 % from last quarter Total Income of Rs 1707.00 Crore and up 16.11 % from last year same quarter Total Income of Rs 1558.89 Crore. Company has reported net profit after tax of Rs 227.86 Crore in latest quarter.

The company’s top management includes Mr.Vellayan Subbiah, Mr.Natarajan Srinivasan, Mr.M A M Arunachalam, Mr.P S Jayakumar, Mr.Shailendra Roy, Ms.Sasikala Varadachari, Mr.Sriram Sivaram, Mr.Kalyan Kumar Paul. Company has SRBC & Co LLP as its auditors. As on 31-12-2022, the company has a total of 153 Crore shares outstanding.

Investment Rationale
Strong support from 100 SMA , sustaining in a series of higher tops and bottoms.

Promoter/FII Holdings
Promoters held 58.12 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.96 per cent, DIIs 7.59 per cent.