CG Power & Industrial Solutions Ltd (CGPOWER) — share price & stock analysis

Market cap

₹1,53,797 Cr

P/E

125×

ROE

20.8%

Book value / share

₹50.6

Revenue (FY26)

₹12,418 Cr

Profit after tax (FY26)

₹1,199 Cr

Weinstein stage

Stage 2 (13 weeks)

Data as of

1 July 2026

5 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 27% — a high-quality engine; effectively no debt; margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

An uptrend that has held for 13 weeks

Every stock cycles through the same four seasons — a flat base (stage 1), an advance (2), a top (3), a decline (4). Right now this one is in Stage 2: advancing, 13 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹765 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 25 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Out of the loss years — profitable again, still below its best

Over 12 years, sales went from ₹13,632 Cr to ₹12,418 Cr (about −1% a year), and profit from ₹244 Cr to ₹1,199 Cr.revenuenet_profit

The books show real losses in FY16 and FY17 and FY18 and FY19 and FY20 (worst: ₹−1,331 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales jumped 25% last quarter — growth every single quarter for over 2 years

Mar 26 sales were ₹3,442 Cr, up 25% on the same quarter last year.revenue

That makes 10 quarters of growth in a row — this is a trend, not a blip.revenue

Margins have been rebuilt — 3.9% in FY21 to 13.1% now

Of every ₹100 of sales, the company keeps ₹13.6 as operating profit (a year ago it kept ₹12.6).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 3.9% in FY21 and has been rebuilt to 13.1% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin moved the same way (30% → 32%), so this is about input costs and pricing power — the raw-material equation improved.gpm_pctopm_pct

Profit jumped 33% — mostly from selling more

Mar 26 profit after tax was ₹363 Cr, up 33% year on year.net_profit

Most of the profit becomes cash — but not all

Over the last 5 profitable years, the business reported ₹5,476 Cr of profit and collected ₹4,104 Cr of operating cash — about 75% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹702 Cr against ₹1,199 Cr of reported profit — about 59%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The gap sits in receivables: customers now take 86 days to pay, up from 74. Profit booked, cash pending.debtor_days

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 48 days to go out the door as materials and come back as collected cash — up from 35 days the year before.cash_conversion_cycle

The biggest mover: customers taking longer to pay (74 → 86 days).debtor_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹3,241 Cr (FY14) to ₹2,086 Cr, with another ₹647 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 31% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is bigger than the cash engine: investing outflows (₹5,467 Cr) exceeded operating cash (₹2,674 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Almost no debt — this company cannot be killed by a bad year

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹1 — total borrowings have shrunk from ₹2,396 Cr to ₹118 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹27 — a high-quality engine

Return on capital employed is 27.0% (a year ago: 37.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Promoter holding dropped in one step — an event, not a slow exit

Promoters hold 56.4% (down 1.7 points over 8 quarters). Foreign funds own 12.0%, domestic funds 18.0%.promoters_pctfiis_pctdiis_pct

The promoter move came in a single step (Sep 25) — promoters rarely buy on-market, so a jump like this is almost always an allotment, infusion or restructuring: a capital event, not a slow accumulation of conviction. Worth knowing which, before reading it as a signal.promoters_pct

Meanwhile foreign funds have been the sellers — from 15.9% to 12.0% over the window. Someone on the other side of the table disagrees; both sides count.fiis_pct

The numbers earn a deeper study — and watch the one thing that matters

The numbers lean positive, and the price is roughly fair to the delivery so far.

Best thing in the data: profit rising (₹274 Cr → ₹363 Cr).net_profit

Biggest worry: free cash flow falling (₹376 Cr → ₹−2,903 Cr).operating_cash_flow

One dissent worth hearing: our valuation lens reads negative — “its fair-value math says the price sits about 63% above what the numbers justify”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data