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We do not publish one number for CG Power — and here is why.
On today's figures the market pays roughly 6.0 times what our model says CG Power is worth. On a company this widely followed, a gap that large almost always means our model is missing something rather than that thousands of investors are wrong. So we show the workings and say plainly that we cannot stand behind a single figure here.
- How it is valued: no single figure is published here — our model and the market disagree too far.
- What the price assumes: 35% growth, against 8% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, CG Power's revenue went from ₹6,288 crore to ₹12,418 crore — it compounded at about 9% a year over 8 years.
- Biggest swing factor: Industrial demand. Main risk: The premium.
01A rescued electrical-equipment maker
CG Power and Industrial Solutions, formerly Crompton Greaves, makes motors, transformers, switchgear and railway equipment. In 2019 it disclosed large financial irregularities under its previous promoters.
Tube Investments of India, part of the Murugappa group, took control in 2020 and turned the business round. CG Power is also building a semiconductor assembly and testing plant in Gujarat with Japan's Renesas and Thailand's Stars Microelectronics.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for CG Power, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03CG Power's record, in plain numbers
Between FY2018 and FY2026, CG Power's revenue went from ₹6,288 crore to ₹12,418 crore — it compounded at about 9% a year over 8 years. It reported a net loss in FY2018, FY2019, FY2020 and FY2021, and closed the period with net profit of ₹1,199 crore. In FY2026 it kept 9.7% of revenue as net profit — against a low of -42.4% in FY2020 and a high of 17.7% in FY2024. FY2025 is missing from the filed series used here, so that year is left out rather than estimated.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 6,288 | -1,166 | -18.5% |
| FY2019 | 7,998 | -507 | -6.3% |
| FY2020 | 5,110 | -2,167 | -42.4% |
| FY2021 | 2,964 | -394 | -13.3% |
| FY2022 | 5,561 | 913 | 16.4% |
| FY2023 | 6,973 | 963 | 13.8% |
| FY2024 | 8,046 | 1,428 | 17.7% |
| FY2026 | 12,418 | 1,199 | 9.7% |
04How CG Power gets valued — and why
Estimate withheld — model and market disagree too farOur model and the market disagree so far apart on this company that the model is the more likely one to be wrong. Rather than publish a number we cannot stand behind, we show the workings and say so.
05What decides CG Power's value
Industrial demand
Motors and transformers follow capex.
Margins
Operational fixes have lifted profitability.
Semiconductors
The chip venture is a long-term option.
Railways
Rail equipment adds orders.
06What could go wrong
- The premium. A very high valuation assumes rapid growth.
- Semiconductor execution. Chip packaging is new and capital-heavy.
- Capex cycles. Industrial demand can slow.
07What the full CG Power valuation shows
Sign in free to see the complete CG Power valuation
- ✓The full model workings — and exactly where the model and the market part ways
- ✓Every assumption — growth, returns and cost of capital, with sources
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against ABB India, Siemens and other electrical-equipment makers
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about CG Power
Who owns CG Power?
Tube Investments of India, part of the Murugappa group, since 2020.
What happened to CG Power in 2019?
It disclosed large financial irregularities under its former promoters.
What is CG Power's semiconductor plan?
An assembly and testing plant in Gujarat with Renesas and Stars Microelectronics.
Is CG Power overvalued?
At ₹828 the market is pricing in roughly 35% sustained growth, against the ~8% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of CG Power?
This business is a group of operations with different economics, so a single blended figure would describe none of them. The parts are valued separately and the breakdown is in the report, rather than one number that cannot be defended.
How much debt does CG Power carry?
Debt to equity stands at 0.00, against 0.00 at the start of the period — the balance sheet is a core input to the cost of capital used here.