Mehabe score: 4 G Factor: 4 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 5.
Description
CG Power & Industrial Solutions is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services and solutions in two main business segments, viz. Power Systems and Industrial Systems. Site:CGPOWER Main Symbol:CGPOWER
Stock trades at 196.0, above its 50dma 168.84. It also trades above its 200dma 116.56. The stock remains bullish on techicals
The 52 week high is at 209.05 and the 52week low is at 37.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is expected to give good quarter
Weakness
– Stock is trading at 65.95 times its book value
-Promoter holding has decreased over last quarter: -0.54%
-The company has delivered a poor sales growth of -10.87% over past five years.
-Promoters have pledged 95.80% of their holding.
Competition
– The industry trades at a mean P/E of 30.8x. A B B trades at the industry’s max P/E of 144.74x. CGPOWER trades at a P/E of x
– Industry’s mean G-Factor is 2.7 while the mean Piotski score is 7.0. CGPOWER has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is 0.7%. The max 1- month return was given by CG Power & Indu.: a return of 18.81 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 1454.0 cr compared to Rs 664.0 cr for period ended Sep 2020, a rise of 119.0% .
vis-vis 56.0 for period ended Sep 2020 .
Operating Margins expanded 332.7 bps for period ended Sep 2021 vis-vis Sep 2020.
Company reported operating profit of Rs 171.0 cr for period ended Sep 2021 and operating profit margin at 11.8 % for same period.
The EPS for quarter ended Sep 2021 is Rs 1.39 compared to Rs 0.36 for previous quarter ended Jun 2021 and Rs 1.76 for Sep 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4441.0 cr for period ended TTM vis-vis sales of Rs 2964.0 cr for the period ended Mar 2021, a healthy growth of 33.3%. The 3 year sales cagr stood at -17.8%.
Operating margins expanded to 10.0% for period ended TTM vis-vis 4.0% for period ended Mar 2021, expansion of 600.0 bps.
Net Profit reported at Rs -10.0 cr for period ended TTM vis-vis sales of Rs -378.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 358% on a 1 Year basis vis-vis a return of 64% over the last 3 Years. – The compounded sales growth on a TTM bassis is 57% vis-vis a compounded sales growth of -28% over the last 3 Years. – The compounded profit growth on a TTM basis is 97% vis-vis a compounded profit growth of 46% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 11.89% vis-vis 10.7% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 29.04% vis-vis 29.63% for Jun 2021
Conclusion
– has reduced debt.
– is expected to give good quarter – Stock is trading at 65.95 times its book value
-Promoter holding has decreased over last quarter: -0.54%
-The company has delivered a poor sales growth of -10.87% over past five years.
-Promoters have pledged 95.80% of their holding.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 168.84 and is trading at 196.0, thus bullish price action wise.
