First Read: CG Power & Industrial Solutions Ltd "Soft Q1 but growth..."

研报英文原文证据摘录

First Read: CG Power & Industrial Solutions Ltd "Soft Q1 but growth..."

m To % ch Cons.

may signal the onset of restocking as pricing holds on, offering a positive read-across for 03/26E 7.89 7.89 0 7.92

short-cycle peers. However, evidence of a broad-based volume recovery is yet to be seen. 03/27E 11.63 11.48 -1 10.39

03/28E 16.04 16.33 2 13.58

Has the management outlook and commentary changed?

Amit Mahawar

a) Q1 motors topline growth was in high teens, while rail remained flat. Management

Analyst

noted that motors have seen double-digit margin, whereas rail margins have historically amit.mahawar@ubs.com

been in the single-digit range. b) Industrial segment outlook remains healthy as +91-22-6155 6030

deliveries for Kavach (approval expected in few weeks) and Vande Bharat should

Akshay Gattani

commence in next few quarters. c) Power pipeline remains healthy across both

domestic/exports market. d) Power transformer capacity is set to increase from 75,000 akshay-kumar.gattani@ubs.com

MVA to 120,000 MVA by FY27, a year ahead of schedule. e) CG Power has secured a +91-22-6155 6044

50% offtake commitment from Renesas for its OSAT facility.

Harshita Surana

Associate Analyst

UBS View: Growth levers intact across power and industrial: retain Buy harshita.surana@ubs.com

We expect the Power segment to continue delivering strong order inflows, execution +91-22-6155 6066

and profitability, supported by timely capacity expansion and sector tailwinds. Industrial

segment growth should improve as rail deliveries ramp up, aiding margins; alongside

sustained recovery in motors business through pricing and a gradual volume

improvement. Beyond industrial, capital allocation decisions over the next 12-24 months

remain a key catalyst for investors.