India's CG Power rises on bets of strong earnings growth

CG Power and Industrial Solutions

05/01/2024 05:49

** Shares of CG Power and Industrial Solutions  CGPO.NS  up
~1% at 468.2 rupess    
    ** UBS projects 21% earnings CAGR for CGPO in FY23-26,
excluding inorganic growth in rail and industrials segment
    ** Brokerage initiates stock with "buy" rating; PT of 580
rupees 
    ** CGPO rose as much as 5.2% in early trade 
    ** UBS anticipates "decent" revenue growth for co, citing
upgrades in domestic urban infrastructure segments, renewable
energy-led transmissions, and efficiency capex in industrials
    ** Adds, co's focus on organic and inorganic expansion key
differentiator versus peers.
    ** In November, CGPO announced its entry into semiconductor
assembly, propelling shares to a record high
    ** Avg rating of 6 analysts covering stock is "hold" 
    ** Stock surged ~68% in 2023 

 (Reporitng by Nishit Navin)
 ((nishit.navin@thomsonreuters.com;))