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Currently, the stock appears to be consolidating sideways after a steep correction from its all-time high
CG Power & Industrial Solutions’ stock appears to be consolidating above a key support zone as the company prepares to report its quarterly earnings later in the day.
After a sharp 21% correction from its all-time high of ₹872.65 hit in October 2024, the stock has found stability between the ₹630 and ₹660 range, as noted by SEBI-registered analyst Rohit Mehta.
A breakout above ₹700, backed by volume, could indicate renewed bullish momentum, while a breakdown below ₹630 may open the door for a deeper pullback, Mehta said. Currently, the trend remains sideways to positive as long as support holds.
Charts show key resistance at the stock’s all-time high level. If the stock drops below ₹630, it is likely to find strong support between the 516.80 and ₹546.60 range, he added.
At the time of writing, CG Power shares were trading 0.56% lower at ₹678.70.
While valuations appear rich at 27.2x its book value, the company’s overall fundamental metrics are healthy. CG Power remains virtually debt-free, has a 3-year average ROE of 45%, and maintains a consistent dividend payout of 19.4%.
In Q4FY25, sales rose 25.6%, operating profit grew by 22.2%, while profit before taxes increased 27.6%.
Shareholding data shows a dip in promoter holding from 58.05% to 56.38% in Q1, while domestic investors (DIIs) raised their stake from 14.22% to 16.33%. FII holdings remained broadly stable.
Ahead of the results, retail sentiment on Stocktwits turned ‘neutral’ from ‘bearish’ a day earlier.
Year-to-date, the shares have shed 6.8% in value.
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