India's CG Power rises as Morgan Stanley initiates coverage with 'overweight'

CG Power and Industrial Solutions

01/09/2025 07:04

** Shares of CG Power and Industrial Solutions CGPO.NS rise 3.7% to 720 rupees, highest since January 8

** Morgan Stanley initiates coverage with an "overweight" rating, sets PT at 799 rupees, implying 15% upside from last close

** Sees strong growth potential in core manufacturing motors, transformers, switchgear and expansion into semiconductors and railways

** Morgan Stanley expects revenue and EBIT CAGR (F25-28e) of 14% and 15%, respectively

** Power systems segment seen delivering revenue/EBIT CAGRs of 35%/42% over FY25–FY28

** CGPO rated "hold" by 10 analysts on average; median target price is 767 rupees – data compiled by LSEG

** Stock down 1.1% YTD

 (Reporting by Rudra Pratap Singh in Bengaluru)

 ((rudrapratap.singh@thomsonreuters.com))