CG Power & Industrial Solutions: OI above estimates; soft operating performance Cut FY27F EPS by 5%; maintain Buy given an EPS CAGR of 33% over FY26-29F

研报英文原文证据摘录

CG Power & Industrial Solutions: OI above estimates; soft operating performance Cut FY27F EPS by 5%; maintain Buy given an EPS CAGR of 33% over FY26-29F

Nomura | CG Power & Industrial Solutions 26 July 2026

Company profile

CG Power and Industrial Solutions Limited, headquartered in Mumbai, is an 86-year-old engineering conglomerate and a leader in the Electrical

Engineering Industry. Since November 2020, the company has become a part of the Murugappa Group. CG has two business lines—Industrial

Systems and Power Systems. It manufactures Traction Motors, Propulsion Systems, Signalling Relays etc., for Indian Railways, and a wide range of

Induction Motors, Drives, Transformers, Switchgears, and other allied products for the Industrial and Power sectors. Recently, the company also

forayed into the business of Consumer Appliances such as Fans, Pumps, and Water Heaters.

Valuation Methodology

Our TP of INR1,100 is based on SOTP. Our SOTP valuation is based on 65x Jun’28 EPS at INR1,016, and OSAT valued at INR80 (based on DCF).

The benchmark index for the stock is Nifty.

Risks that may impede the achievement of the target price

Key downside risks: (1) Slowdown in T&D capex, and (2) increase in commodity prices.

ESG

CG has conducted a comprehensive roadmap exercise to align with Environmental, Social, and Governance (ESG) objectives. As a part of its

commitment to transparency, the company has released its inaugural Sustainability Report in FY23, which outlines its performance and unwavering

dedication to sustainability. Key highlights from its sustainability efforts include: (1) Renewable Energy Consumption: The company’s share of

renewable energy consumption relative to total energy usage has increased to 11.84% in FY24, up from 10.5% in FY23. This positive trend reflects