CG Power & Industrial Solutions Ltd (formerly known as Crompton Greaves Limited) is a leading Indian manufacturer of power and industrial systems, offering transformers, switchgear, motors, and drives for utilities, railways, and industrial sectors. After a major corporate restructuring and acquisition by the Murugappa Group (via Tube Investments of India), the company has re-emerged as a high-efficiency, debt-light player with strong return ratios and global ambitions. Despite recent profit contraction, its strategic positioning in India’s electrification and industrial modernization makes it a compelling long-term investment. This article provides a fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Former Name: Crompton Greaves Limited (renamed to CG Power & Industrial Solutions Ltd in 2019)
Business: Two core segments:
Power Systems: Transformers, switchgear, and grid solutions
Industrial Systems: Motors, drives, and railway traction systems
Ownership: 56.36% held by Murugappa Group (via Tube Investments of India)
Listed: Yes – on BSE (500405) and NSE (CGPOWER)
Clarifications:
What is the new name? The company was renamed from Crompton Greaves to CG Power & Industrial Solutions Ltd in 2019.
Who owns CG Power? The Murugappa Group (promoter holding: 56.36%).
Is it debt-free? Effectively yes – only ₹2.69 Cr debt vs ₹796 Cr cash.
Is it a good buy? Suitable for long-term, quality-focused investors—not for short-term traders due to recent earnings volatility.
CG Power: Key Financial Snapshot (as of Jan 2026)
Metric
Value
Market Capitalization
₹1,05,336.69 Cr
Current Share Price
₹669
52-Week High / Low
₹875 / ₹479
P/E (TTM)
89.21
P/B (TTM)
13.19
Book Value (TTM)
₹50.70
EPS (TTM)
₹7.50
ROE
26.85%
ROCE
36.85%
Dividend Yield
0.20%
Debt
₹2.69 Cr (virtually debt-free)
Cash Reserves
₹795.93 Cr
Sales Growth (YoY)
22.59%
Profit Growth (YoY)
–2.98% (decline)
Shareholding Pattern
Category
Holding (%)
Promoters (Murugappa Group)
56.36%
Domestic Institutions (DII)
17.55%
Public (Retail)
14.05%
Foreign Institutions (FII)
12.02%
Others
0%
Note: Strong promoter control ensures strategic alignment with Murugappa’s industrial vision.
CG Power Share Price Target Forecast (2026–2030)
Despite near-term profit pressure, the company’s high ROCE, debt-free balance sheet, and sector tailwinds support long-term upside. Targets assume:
EPS CAGR of 15–18% (supported by 22.6% sales growth)
P/E compression from 89x to 50–55x by 2030
Return to double-digit profit growth by FY27
Year
Target Price Range (₹)
2026
₹700 – ₹790
2027
₹750 – ₹860
2028
₹800 – ₹940
2029
₹850 – ₹1,020
2030
₹900 – ₹1,100
Year-wise Breakdown
CG Power Share Price Target 2026
Year
Target 1
Target 2
2026
₹700
₹790
Rationale: Near-term headwinds from one-time provisions and raw material costs have impacted profits. However, the order book remains strong, especially in motors and rail segments.
CG Power Share Price Target 2027
Year
Target 1
Target 2
2027
₹750
₹860
Rationale: Expected recovery in margins with localization of motor components and export ramp-up (Europe, Africa).
CG Power Share Price Target 2028
Year
Target 1
Target 2
2028
₹800
₹940
Rationale: By 2028, industrial automation and green motor demand could drive premium pricing. ROCE sustainability (~37%) supports valuation.
CG Power Share Price Target 2029
Year
Target 1
Target 2
2029
₹850
₹1,020
Rationale: Long-term play on India’s manufacturing push, railway electrification, and energy efficiency mandates.
CG Power Share Price Target 2030
Year
Target 1
Target 2
2030
₹900
₹1,100
Rationale: The upper end assumes sustained 20%+ ROE, dividend initiation, and market leadership consolidation. Even at ₹1,100, P/E would be ~55x—reasonable for quality.
Strengths vs Risks
✅ Strengths
Virtually debt-free with ₹796 Cr cash
High ROCE (36.8%) and ROE (26.8%)
Backed by Murugappa Group – strong governance
Beneficiary of PLI, Make in India, and green energy policies
⚠️ Risks
Very high P/E (89x) leaves little margin for error
Profit declined by 3% despite sales growth
Low dividend yield (0.2%) – not suited for income investors
Global competition in motors and transformers
Investment Suitability
Factor
Assessment
Risk Profile
Moderate-to-High (premium valuation)
Time Horizon
Long-term (5+ years)
Volatility
High
Dividend/Income
Minimal (0.2% yield)
Ideal Investor
Quality-focused investor bullish on India’s industrial revival
FAQs
It was formerly Crompton Greaves Limited; renamed to CG Power & Industrial Solutions Ltd in 2019.
Yes—for long-term portfolios. Its fundamentals are strong, but current valuation demands patience.
56.36%, controlled by the Murugappa Group.
Effectively yes—only ₹2.69 Cr debt against ₹796 Cr cash.
The Murugappa Group (via Tube Investments of India).
Final Verdict
CG Power & Industrial Solutions is a high-quality industrial stock with best-in-class capital efficiency and strategic relevance to India’s infrastructure story. While near-term profit weakness warrants caution, its debt-free balance sheet, strong order book, and Murugappa backing make it a solid compounder. Our 2026–2030 price targets (₹700–₹1,100) reflect steady appreciation—not speculative hype. Investors should accumulate on dips with a 5-year horizon.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
