InvestorQ : Why have the shares of CG Power hit a new high on the bourses?
ishika Banerjee made post

Why have the shares of CG Power hit a new high on the bourses?

3 weeks ago

CG Power and Industrial Solutions hit a life time high of Rs230 during the week and has rallied close to 13% amid heavy volumes in just two days. The stock is up 30% in the last one month on the back of strong business outlook. The company manufactures electric motors, generators, transformers and electricity distribution and control apparatus. There are several growth triggers. The infrastructure investment is drivng the Capex cycle. It is also looking to get into the EV segment, something Greaves Cotton has done effectively.

In fact, very significant investments have been committed to the energy sector. This includes solar parks and ultra mega solar power projects. These are likely to boost the requirement of the Power Systems business. The company has also been recently identifying synergies with Tube Investments of the Murugappa Group. Some of its big focus areas in the future include EVs, FMEGs, railways, steel, agriculture, defence and renewable energy. It is planning to launch technologically advanced products in these spaces.