CG Power & Ind (CGPOWER)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-Graham investor, I see CG Power as a high-quality but richly priced cyclical. In heavy electrical equipment, demand can swing, so I want a margin of safety. The balance sheet is superb: debt/equity is only 0.01, Altman Z-Score is 11.99, Piotroski F-Score is 8/9, and free cash flow is ₹376 Cr. Returns are excellent—ROE 28.95%, ROCE 37.48%—which suggests the business earns well on capital. Growth is steady, not explosive: sales growth 14%, profit growth 13.1%, and five-year revenue CAGR 14.16%. Latest quarter sales were ₹3,175 Cr with net profit ₹284 Cr. Promoter holding of 56.36% is reassuring. However, at ₹890.15, market cap ₹1.40 lakh Cr, P/E 112.39, P/B 17.59, and book value ₹50.61, I must ask what I am paying for. Graham Number is ₹63.71 and DCF intrinsic value is ₹80.64; the margin of safety is -1038.37%, meaning the price is far above intrinsic estimates. Dividend yield is only 0.15%, so little cash return while waiting. FairStock Score 48/100 is mixed, and EV/EBITDA of -4.62 is an odd signal I cannot ignore. This is not a Graham bargain. The business quality is real, but the valuation assumes sustained high growth and returns. I would rather watch it than buy it. A wonderful company at a poor price can still be a poor investment; here, the numbers scream caution.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer