Growth engine gets another gear: Domestic momentum continues, exports poised to accelerate; estimate 33% EPS CAGR over FY26-29F

研报英文原文证据摘录

Growth engine gets another gear: Domestic momentum continues, exports poised to accelerate; estimate 33% EPS CAGR over FY26-29F

Global Markets Research

CG Power & Industrial Solutions CGPO.NS CGPOWER IN 25 June 2026

EQUITY: CAPITAL GOODS

RatingGrowth engine gets another gear Remains Buy

Target priceDomestic momentum continues, exports poised to Increased from INR 1,100accelerate; estimate 33% EPS CAGR over FY26-29F INR 1,050

priceWe recently met CG’s management in Mumbai who articulated a compelling export growth narrative. CG Closing

24 June 2026 INR 919is uniquely positioned at the nexus of supply constraints in Western markets and its ongoing capex,

enabling it to capture transformer and switchgear opportunities across the US and European markets

Implied upsidewhen lead times are measured in years and data-center/grid capex is making new highs. +19.7%

Owing to supply constraints, US market offers immense export potential Market Cap (USD mn) 15,298.5

Led by data-centre (DC) expansion, electrification, renewable energy, and replacement of aging assets, ADT (USD mn) 36.5

US power (PT)/generation step-up (GSU) transformer demand grew 116%/274% over CY19-25,

according to Wood Mackenzie (WM), creating supply deficits (Fig.2). PT/GSU deficit reached 39%/100% Relative performance chart

in CY25, pushing transformer lead times to 128-144 weeks, vs 12-16 weeks pre-pandemic. As per USITC,

US PT imports has surged 4x since CY21 to USD4.1bn in CY25, highlighting import-dependency as

imports meet 80% of US PT demand. Robust DC pipeline and risingpenetration of EVs are likely to keep

electricity consumption and US PT demand robust while staggered commissioning of new capacities is

likely to sustain import dependency in PT, in our view.