scorecardresearchMultibagger Alert: This midcap stock has rallied 5800% from March 2020

Multibagger Alert: This midcap stock has rallied 5800% from March 2020 lows

Updated: 27 Jan 2023, 06:46 PM IST
TL;DR.

In Q3FY23, the company posted a 58% YoY drop in its consolidated net profit to 227.86 crore.

For the nine-month period ending December 31, 2022, the consolidated net profit stood at  <span class='webrupee'>₹</span>536.76 crore.

For the nine-month period ending December 31, 2022, the consolidated net profit stood at 536.76 crore.

Shares of CG Power and Industrial Solutions have given stunning returns to their shareholders, surging over 33 times in the last 3 years.

After progressively declining between 2015 and 2019, losing over 95 percent of its value, the stock regained momentum in March 2020 at roughly 5.05 apiece. It has remained in the same trend to this day, hitting 299 levels and producing massive gains of 5,820 percent. In addition, on January 20, 2023, the stock reached a 12-year high of 315.

The majority of the stock's gains occurred in 2021 – up 332 percent. In that year, it added 21,451 crore in market capitalization.

In CY22, the stock delivered a 39 percent return, surging from 194.55 to 270, while the Nifty50 has gained 4.32 percent during the same time period. The stock is currently 16 percent away from reaching its all-time high of 345, which it hit in November 2010.

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Stock price chart of CG Power and Industrial Solutions.

On January 24, the company posted a 58 percent YoY drop in its consolidated net profit to 227.86 crore for the December quarter. However, sequentially, the net profit was up by 26.81 percent.

Revenue from operations increased by 16.17 percent YoY to 1,810 crore in Q3FY23 from 1,558.9 crore in the previous quarter.

The operating profit surged to 275.8 crore from 208.1 crore in Q2 FY22, a growth of 32.54 percent. The company reported its best EBITDA margin of 15.53 percent, up 211 basis points (bps) year on year.

For the nine-month period ending December 31, 2022, the consolidated net profit stood at 536.76 crore as against 801.42 crore registered for the same period last year. In the same period, the consolidated revenue increased to 5,191.45 crore from 4,088.27 crore in a similar period last year.

Meanwhile, the board of the company approved the expansion of the manufacturing capacity of transformers at two of its facilities in Madhya Pradesh at an outlay of 126 crore, the company said in a statement.

The company pre-redeemed non-convertible debentures worth 200 crore, post which it has become debt-free.

The promoters own 58.1 percent of the shares in the company, while foreign portfolio investors and domestic institutional investors each own 13 percent and 8.3 percent, respectively. Regular shareholders own 20.6 percent, Trendlyne data showed.

04 analysts polled by MintGenie on average have a 'buy' call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 27 Jan 2023, 06:46 PM IST