CG Power and Industrial Solutions Ltd. has captured the attention of investors with a significant rally in its CG Power share price. The stock has been on a winning streak, surging over 14% in the last four sessions, and reaching an intraday high on Wednesday, a day when the broader market sentiment was muted. This impressive performance is largely attributed to a major strategic announcement and subsequent positive analyst reports.
The rally began with the company's recent revelation about the launch of its new Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, through its subsidiary, CG Semi. This move marks a crucial step for CG Power into the burgeoning semiconductor sector, positioning it as an early player in India's quest for technological self-reliance. The company's ambitious plan to invest over ₹7,600 crore in the new plant over the next five years, with support from both central and state governments, has instilled strong confidence among investors.
Following this news, leading global brokerage firms have shown a bullish outlook on the stock. Morgan Stanley initiated coverage with an "Overweight" rating and a target price of Rs 799, citing CG Power as a key proxy for India's manufacturing growth story. Similarly, Nomura maintained a "Buy" rating with a higher target price of Rs 840, suggesting a substantial upside potential. This flood of positive sentiment from financial experts has been a key driver behind the current upward trend in the CG Power share price.
The company's performance has been a testament to its long-term growth story. Over the past five years, the stock has delivered a staggering return of over 3,000%, solidifying its status as a multibagger. While the immediate boost is tied to the semiconductor venture, analysts also point to the company's strong fundamentals, including its established position in the motors and power systems businesses, as a source of sustained earnings growth.
Investors are now closely monitoring the future developments of the new OSAT facilities. The first plant (G1) is set to begin commercial production in 2026, while a larger facility (G2) is expected to be completed by the end of 2026, significantly scaling up production capacity. The successful execution of this plan could further fuel the momentum of the CG Power share price.
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