Can CG Power stock price reach ₹900 at any time? Here’s what UBS says:
Overview: UBS maintained Buy on CG Power & Industrial Solutions, raising target to Rs. 900, suggesting an upside of 32% due to capacity expansion, export growth and strong fundamentals, even as losses in the semiconductor division are impacting margins.
The company’s stock provides products, services and solutions in two main business segments – Power Systems and Industrial Systems, which provides end-to-end solutions to industries and is gaining attention after UBS raised its price target by 32%.
Market capitalization is Rs. 1,07,566 cr; CG Power & Industrial Solutions Ltd. It was trading at Rs. 683 per share, a 2.4% increase from the previous closing price of Rs. It is 667.80 per share. The stock has returned 9% over the past year, is up 7% year-to-date, is down 10% over the past six months, and is down 4% in the past month.
UBS maintains Buy rating on CG Power
UBS maintained its ‘buy’ rating on CG Power & Industrial Solutions Ltd and raised its target price to Rs. 900 840 from Rs, representing a strong upside of about 32%. The brokerage believes the company is at an inflection point and previous difficulties with industrial orders, margins and rail execution are far behind.
CG Power remains well positioned in the power sector through continued capacity expansion and improved export visibility. Although it may take time to scale up exports, the company’s strong fundamentals provide confidence in its growth trajectory.
The company’s strong cash position following QIP is expected to support future growth initiatives, including expansion of its product portfolio and ambitions in the semiconductor sector.
Despite these positive aspects, the semiconductor (OSAT) business continues to weigh on margins and is reporting larger losses in the third quarter. Overall revenue fell short of margin expectations due to continued investment in this segment, which remains a key area for improvement.
About us
CG Power & Industrial Solutions Ltd is a multinational engineering and electrical equipment company that designs, manufactures and sells a wide range of products for power generation, transmission, distribution and industrial applications. Its portfolio includes transformers, switchgear, motors, drives, traction systems, signaling equipment for railways and other electrical systems, serving sectors such as utilities, industrial and infrastructure.
Revenues in the third quarter of 2026 recorded strong growth, up 22% year-on-year to Rs. 2,909 crore from Rs. In the third quarter of 2025, it is $238.9 billion. EBITDA increased by 33% to Rs. Pre-tax profit rose 35% to Rs 48 billion. 45.4 billion. Net profit increased by 42% to 10 billion won. 347 crore, which translates to a PAT of Rs. Revenues increased 28% year over year to $312 million, reflecting healthy operating performance and improved margins.
The Power Systems segment was the key growth driver, with revenue surging 44% year-on-year to Rs. 1,326 cr. The segment recorded significant margin expansion (378 bps), with PBIT achieving 21.4% of sales, driven by strong execution and improved price realization. The outlook for the sector remains very strong and this is evidenced by the unexecuted order backlog reaching Rs. 11,289 cr, an 89% increase over the previous year.
In contrast, the Industrial Systems segment recorded a modest 8% year-on-year revenue growth at Rs. 1,585 cr. Although volumes were strong in the Automotive and Rail business segments, PBIT margins in those segments declined to 9.4% from 12.5% in the year-ago period due to higher raw material prices and changes in product mix that were not fully delivered to customers. Despite these margin headwinds, orders increased by 9% compared to the same period last year, and the order backlog recorded a healthy KRW 200 million. 3,569 cr.
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