Shares of CG Power and Industrial Solutions zoomed 10 per cent on Wednesday after a strong December-quarter performance and interim dividend announcement.
The stock settled at ₹581.95 on the NSE, near the day’s high of ₹583.65 against the previous close of ₹530.65.
It posted a standalone net profit of ₹311.65 crore for the quarter ended December 2025, marking a 27.5 per cent rise from ₹244.27 crore in the year-ago period. The board also approved an interim dividend of ₹1.30 per share, adding to investor cheer.
Morgan Stanley said it continues to maintain an overweight rating on the stock with a target price of ₹717, citing sustained strength in transformer demand through FY29, driven by renewable energy additions, transmission and distribution investments, and data centre expansion. The global brokerage highlighted robust export momentum, noting that order inflows were up nearly 50 per cent year-on-year in the first nine months of FY26. It added that capacity in the power systems segment is ramping up ahead of schedule, which could support margin expansion as the company executes its growing backlog.
Morgan Stanley also said it does not expect any material risks from potential Chinese entry into the domestic market, citing CG Power’s continued focus on cost discipline. It further noted that the company’s Semis M2 plant remains on track for December 2026, while switchgear expansion is planned through a brownfield route.
Nuvama Institutional Equities described the quarter as one marked by strong execution, with revenue up 26 per cent year-on-year, although EBITDA came in about 5 per cent below its estimate due to softer industrial margins stemming from commodity pressures, weaker realisations and an unfavourable railways mix.
The brokerage said the power segment stood out, posting 44 per cent year-on-year growth with operating margins of 21.4 per cent, up 380 basis points. Accelerated transformer capital expenditure and rising exports underpin the company’s medium-term growth outlook, while optionality from OSAT and Axiro could come into play beyond FY29.
Nuvama retained buy call from a long-term perspective, anchored on high-growth transmission and distribution opportunities and the potential for an industrial recovery. It said it has trimmed FY27 and FY28 earnings estimates by 6 per cent and 8 per cent, respectively, but still expects an EPS CAGR of around 28 per cent, implying a base target price of ₹733 and a bull-case target of ₹800.