CG Power Daily Technical Chart Analysis
CG Power is currently trading at approximately ₹720–₹724 as of November 19-20, 2025. The stock has experienced recent weakness, trading below its short-term moving averages with technical indicators showing bearish momentum. RSI is around 39-42, indicating oversold conditions and potential for a near-term rebound. MACD is negative at -3.59, confirming downward momentum.
Support levels: ₹710, ₹700, ₹680
Resistance levels: ₹732, ₹750, ₹760
The stock has formed a higher high-higher low structure after rebounding from its ₹520 base earlier in the year. However, short-term weakness persists. Traders should watch for volume confirmation and RSI reversal signals before taking fresh positions. A sustained move above ₹750 would indicate bullish recovery.
CG Power Fundamental Analysis
CG Power is a leading player in electrical equipment and industrial solutions with strong parentage and execution capabilities. The company has demonstrated exceptional growth, with 3-year returns of 216% and 5-year returns of 3,267%.
Key Highlights:
Revenue Growth: Q2 FY2025 standalone net sales at ₹2,649 crore, up 16.69% YoY
Strong Order Book: Recently secured ₹641 crore order from Power Grid Corporation
Fundraising: Plans to raise up to ₹3,000 crore via Qualified Institutional Placement
Analyst Coverage: Morgan Stanley assigned ‘Overweight’ rating with target price of ₹799, projecting 34% CAGR in PAT for FY25-FY28
Market Cap: ₹113,763 crores
Promoter Holding: 56.37% (slight decrease noted)
The company is well-positioned to benefit from India’s manufacturing growth, power infrastructure expansion, and semiconductor initiatives.
News Events & Impact
Morgan Stanley Coverage (August 31, 2025): Initiated with ‘Overweight’ rating and ₹799 target price, calling CG Power a “proxy for India’s manufacturing growth”. This has provided strong institutional confidence.
Major Order Win: Secured ₹641 crore order from Power Grid Corporation, reinforcing revenue visibility.
QIP Announcement: Plans to raise ₹3,000 crore at around ₹660 per share for expansion and debt reduction.
Gujarat OSAT Facility: Strategic expansion into semiconductor assembly and testing, aligning with India’s semiconductor mission.
Impact: These developments are fundamentally positive but short-term price weakness reflects profit-booking after strong gains. Long-term outlook remains robust.
Positive Points
Exceptional long-term returns: 3,267% in 5 years, 216% in 3 years
Strong order inflows from power and industrial segments
Robust revenue growth: 16.69% YoY in Q2 FY2025
Strategic diversification into semiconductors (Gujarat OSAT facility)
Institutional backing: Morgan Stanley ‘Overweight’ with ₹799 target
Solid promoter holding at 56.37%
Beneficiary of India’s infrastructure and manufacturing growth
Strong governance with transparent disclosures
Negative Points
Short-term technical weakness: RSI at 39-42 (oversold), below moving averages
Promoter holding decreased by 1.68% over last quarter
Valuation concerns: Trading at 15.2x book value, considered overvalued by some metrics
High volatility: ATR indicates elevated price swings
Profit-booking pressure after strong rally from ₹520 to ₹811 (52-week high)
Execution risks in new semiconductor venture
Competition in electrical equipment sector
Micro View
Short-term price action shows consolidation between ₹710-₹750 with bearish technical indicators. RSI in oversold zone suggests potential bounce, but lack of volume confirmation keeps sentiment cautious. Immediate support at ₹710-₹700; break below could test ₹680. Resistance at ₹732-₹750. Traders should wait for clear trend reversal signals.
Macro View
CG Power is strategically positioned to capitalize on:
India’s manufacturing boom (Make in India, PLI schemes)
Power infrastructure expansion (grid modernization, renewable energy)
Semiconductor ecosystem development (India Semiconductor Mission)
Railways and industrial capex growth
Macroeconomic tailwinds support long-term growth trajectory despite short-term volatility. Government focus on infrastructure and self-reliance in critical technologies bodes well for the company’s diversified portfolio.
Disclaimer & Disclosure
This report is prepared for informational and educational purposes only and does not constitute investment advice, recommendation, or solicitation to buy or sell securities. Stock market investments are subject to market risks. Past performance is not indicative of future results. Investors should conduct independent research and consult with qualified financial advisors before making investment decisions.
The author/analyst and affiliated entities do not hold any direct or indirect positions in CG Power & Industrial Solutions Ltd at the time of publication. This analysis is based on publicly available information and third-party research reports. Accuracy of data is subject to source reliability.
SEBI Registration: This report is prepared by a SEBI Registered Research Analyst (Registration No: INH000012856) for client information purposes.