Behind US stock gains, gold’s climb reflects growing market uncertainty: Macquarie
Investing.com - JPMorgan has initiated coverage on CG Power & Industrial Solutions (CGPOWER:IN) with an Overweight rating and a price target of INR840.00 on Wednesday.
The financial services firm cited CG Power’s significant improvements in profitability and cash flows following its acquisition by the Murugappa Group, along with strong traction in new product development and market share gains, including leadership in LT motors.
JPMorgan noted the company has achieved early success in new ventures, including orders for train anti-collision systems and propulsion kits for Vande-Bharat trains, while its entry into the OSAT business is being complemented by expansion into fabless operations, with a large portion of capital expenditure funded through government grants.
The firm expects CG Power’s growth momentum to remain strong, driven by expansion in power systems (transformers) and railways businesses, forecasting a fiscal year 2025-2028 earnings per share compound annual growth rate of approximately 30% with return on capital employed of around 30%.
JPMorgan believes CG Power’s strong pedigree, earnings growth, high return on equity, and potential from new business lines will support premium trading multiples for the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.