The Indian equity markets have been buzzing with activity, and one stock that continues to attract attention is CG Power & Industrial Solutions (NSE: CGPOWER). Once a struggling company weighed down by debt and management challenges, CG Power has undergone a remarkable transformation in recent years, thanks to the backing of the Murugappa Group’s Tube Investments of India (TII). Today, CG Power stands tall as a leader in industrial solutions, electrical equipment, and semiconductor manufacturing initiatives.
As of August 29, 2025, CG Power shares are trading near ₹694.30, reflecting a strong upward movement of 4.6% intraday. With a 52-week range of ₹517–₹875, the stock has given multibagger returns over the past few years, making it a hot favorite among retail investors, mutual funds, and institutional investors.
This blog takes a deep dive into the company’s share price journey, fundamentals, and what investors can expect going forward.
1. CG Power: A Brief Background
CG Power & Industrial Solutions, formerly Crompton Greaves Ltd, has a long history as one of India’s leading electrical engineering companies. It manufactures transformers, switchgear, motors, industrial systems, and automation equipment.
However, by 2017–2019, the company had fallen into severe financial stress due to poor management, governance lapses, and debt burdens. In 2020, the Murugappa Group acquired a controlling stake through Tube Investments of India, marking the start of a turnaround story.
2. The Turnaround Story
The new management focused on:
- Debt restructuring and cleaning up the balance sheet
- Reviving core businesses in power systems and industrial solutions
- Exploring new growth avenues such as semiconductor manufacturing and defense electronics
This revival strategy has paid off handsomely. The company has not only regained profitability but has also positioned itself as a key player in India’s push for self-reliant manufacturing under the government’s Atmanirbhar Bharat initiative.
3. Recent Share Price Performance
a) Intraday and Short-Term Movement
- On August 29, 2025, CG Power surged by nearly 4–5% intraday, hitting a high of ₹699.75.
- The rally was supported by strong investor sentiment after the announcement of a ₹7,600 crore investment in an OSAT (Outsourced Semiconductor Assembly and Testing) facility in Gujarat.
b) 52-Week Range
- 52-week low: Around ₹517
- 52-week high: Around ₹875
This indicates strong volatility but also the potential for significant upside if growth plans materialize.
4. Fundamental Strength
Revenue & Profit Growth
Under Murugappa Group’s leadership, CG Power has posted steady growth in revenues and profitability. The company is cash-rich and virtually debt-free, which provides it a solid foundation for expansion.
Strategic Investments
The most notable growth driver is its semiconductor and electronics manufacturing plan. With India aggressively promoting chip manufacturing, CG Power is well-placed to benefit.
Institutional Support
Several mutual funds, FIIs, and DIIs have increased their stake in the company, indicating long-term confidence.
5. Why is the Share Price Rising?
Several factors are fueling the rally in CG Power shares:
- Semiconductor Manufacturing Push – The ₹7,600 crore Gujarat OSAT facility positions CG Power at the center of India’s semiconductor ecosystem.
- Murugappa Group’s Management – Proven track record of corporate governance and expansion.
- Infrastructure & Energy Demand – Growing demand for transformers, power equipment, and automation solutions across India.
- Debt-Free Balance Sheet – Strong financials give comfort to investors.
- Global Tailwinds – As global supply chains diversify away from China, Indian companies like CG Power are gaining investor interest.
6. Risks and Challenges
No investment is without risks. For CG Power, the key challenges include:
- Execution Risk: Semiconductor manufacturing is capital-intensive and requires precision. Delays or cost overruns could impact margins.
- Global Competition: Competing with established global semiconductor giants may take time.
- Stock Valuation: With the stock already delivering multibagger returns in the last three years, valuations appear stretched compared to peers.
- Market Volatility: Any slowdown in infrastructure spending or policy delays could affect growth.
7. Analyst Views
Brokerages remain optimistic about CG Power’s future. For example, Nomura has predicted a 26% upside based on its semiconductor facility and growth in power solutions. While near-term volatility is inevitable, the long-term story remains compelling—driven by India’s infrastructure push, semiconductor ambitions, and a robust governance framework under the Murugappa Group. Other analysts highlight its debt-free status, strategic backing, and long-term relevance in India’s growth story.
8. Long-Term Growth Prospects
CG Power is riding multiple mega-trends:
- Make in India & Atmanirbhar Bharat: Government support for domestic electronics and energy equipment manufacturing.
- Semiconductor Self-Reliance: A major push for chip production in India.
- Green Energy Transition: Demand for transformers and industrial systems in renewable energy projects.
- Infrastructure Growth: Rising investments in smart cities, metros, and industrial automation.
If executed well, CG Power could emerge as one of the leading industrial and semiconductor ecosystem players in Asia.
9. Investment Outlook
For short-term traders, the stock remains volatile and prone to corrections, especially around quarterly earnings or project updates.
For long-term investors, CG Power offers a compelling story of turnaround, growth, and strategic relevance. With strong fundamentals and promising growth in semiconductors, the company could sustain its upward trajectory, albeit with periodic corrections.
10. Key Levels to Watch
- Support Zones: ₹650–670 range could act as support in near-term pullbacks.
- Resistance Levels: ₹720–750 zone may be a short-term hurdle; a breakout above this could push the stock toward ₹800+.
Investors should track project updates on the Gujarat OSAT facility and overall order book momentum in power equipment.
11. Lessons from CG Power’s Journey
CG Power’s story offers valuable insights for investors:
- Management Matters: Strong leadership under the Murugappa Group revived a struggling company.
- Sectoral Trends Drive Growth: Alignment with semiconductor and infrastructure trends has boosted investor confidence.
- Patience Pays: Investors who stayed invested through tough times reaped multibagger gains.
- Diversification is Key: CG Power is expanding beyond traditional businesses into high-growth areas.
Conclusion
The CG Power share price reflects not just market speculation but a structural turnaround backed by strong fundamentals and visionary investments. With a current price around ₹694, the stock remains in the mid-range of its 52-week band, offering both risks and opportunities.
While near-term volatility is inevitable, the long-term story remains compelling—driven by India’s infrastructure push, semiconductor ambitions, and a robust governance framework under the Murugappa Group.
For investors with a long-term horizon, CG Power could remain a powerful wealth creator in the years ahead.
