Multibagger Semiconductor Stock turns ₹1 lakh into ₹70 lakh

This company’s stock has risen by over 6,870 percent from Rs 9.30 in July 2020 and is currently trading at Rs 652, giving a significant gain of 6,911 percent to its investors. If an investor had put Rs. 1 lakh into the stock, that Rs. 1 Lakh would have turned to Rs. 70,11,000 if someone had invested in 2020 and held the share till date.

With a market capitalisation of Rs 1,02,629 crore, the shares of CG Power & Industrial Solutions Ltd are currently trading at Rs 652 per share, and in the past 1 year, it has given a negative return of 10.37 percent, and the past 5-year return stands at 6,870 percent.

CG Power and Industrial Solutions Limited provides a broad spectrum of solutions across the power and industrial systems and services. The Power Systems segment comprises transformers, switchgears, circuit breakers, and turnkey projects for substations. 

The Industrial Systems segment supplies traction motors, generators, fans, automation, railway components, and works closely in projects within adhesive tapes and semiconductor assembly. CG Power serves railway, defence, oil and gas, renewables, and other sectors across India and globally.

The company is a part of the Murugappa Group, a well-established conglomerate that’s been around for 124 years and has made its mark both in India and on the global stage. With an impressive turnover of Rs 77,800 crore (INR 778 billion), the group is involved in a variety of sectors, including agriculture, engineering, and financial services, to name just a few.

Financial Highlights

CG Power reported a revenue growth of 29 percent to reach Rs 2,878 crore in Q1 FY26, as compared to Rs 2,228 crore in Q1 FY25. Additionally, on a QoQ basis, it increased by 5 percent from Rs 2,753 crore.

CG Power has reported impressive results across its segments for Q1 FY26. The Industrial Systems segment saw a solid 16 percent increase in sales compared to the previous year, climbing from Rs 1,357 crore in Q1 FY25 to Rs 1,574 crore. 

On the other hand, the power Systems outperformed expectations, with sales skyrocketing by 43 percent year-on-year, jumping from Rs 750 crore to Rs 1,070 crore. This indicates a strong demand in both areas.

EBITDA grew 14 percent YoY to reach Rs 409 crore in Q1 FY26 as compared to Rs 360 crore in Q1 FY25. However, on a quarterly basis, its EBITDA declined by 2 percent from Rs 418 crore.

Coming down its profitability, the company reported a net profit growth of 11 percent to Rs 267 crore in Q1 FY26, as compared to Rs 241 crore in Q1 FY25. However, on a QoQ basis, it declined by 2.55 percent from Rs 274 crore.

As of June 2025, the company has an unexecuted order book of Rs 13,072 crore, which grew by 82 percent from its previous year of the same quarter. Additionally, its order intake for the quarter stands at Rs 5,138 crore, which grew by 62 percent from its previous year of the same quarter.

The stock delivered an impressive ROE and ROCE of 27.61 percent and 37.48 percent respectively, and is currently trading at a high P/E of 103x as compared to its industry average of 56.29x.

Key Events

CG Power recently secured several major orders and completed a successful fundraising. It bagged its highest-ever single order worth Rs 641 crore from PowerGrid for supplying and servicing 765kV transformers, to be executed over 18–36 months. 

Its subsidiary, G.G. Tronics, won a Rs 148 crore order for Station “KAVACH” (Train Collision Avoidance System) in North Western Railways. CG also received its largest-ever Rs 244 crore order in the EHV segment from Techno Electric for supplying key transmission equipment.

Additionally, CG raised Rs 3,000 crore via a Qualified Institutional Placement (QIP), which was oversubscribed over 3 times, with strong interest from both Indian and global investors.

Written by Satyajeet Mukherjee

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