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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

CG Power & Industrial Solutions Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 11:38 pm

Market Cap 1,27,277 Cr.
Current Price 833
High / Low875/359
Stock P/E142
Book Value 19.8
Dividend Yield0.16 %
ROCE46.6 %
ROE57.8 %
Face Value 2.00
PEG Ratio1.41

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for CG Power & Industrial Solutions Ltd

Competitors of CG Power & Industrial Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Evans Electric Ltd 86.2 Cr. 314401/14217.8 71.10.96 %36.4 %28.0 % 10.0
Epic Energy Ltd 47.6 Cr. 66.166.1/5.97111 9.350.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 272 Cr. 73.899.8/32.531.5 18.70.00 %23.6 %15.4 % 10.0
Cospower Engineering Ltd 76.2 Cr. 508537/200693 48.10.00 %8.12 %1.54 % 10.0
Continental Controls Ltd 7.21 Cr. 11.718.5/4.80361 3.350.00 %7.82 %14.0 % 10.0
Industry Average20,096.39 Cr713.65162.6669.050.11%16.28%19.86%6.12

All Competitor Stocks of CG Power & Industrial Solutions Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8201,1181,0501,4541,5511,4851,6431,6961,7521,9031,8742,0021,979
Expenses7231,0579451,2831,3431,3191,4561,4371,4751,6271,6091,6931,718
Operating Profit9761105171208166186260277275265309261
OPM %12%5%10%12%13%11%11%15%16%14%14%15%13%
Other Income1,24225511107423121611601992943579
Interest1426171717175542101
Depreciation34332825252324252325242324
Profit before tax1,29125871236589139173241310447270329816
Tax %67%-285%23%15%8%20%25%26%26%5%24%26%8%
Net Profit42599355202545112130179228426204242748
EPS in Rs3.227.420.401.494.030.770.851.171.492.791.331.594.89

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales11,24912,09413,6325,8005,2695,5178,0317,9985,1102,9645,4846,9737,757
Expenses10,44511,71113,0195,5115,1815,6457,8937,6995,0792,8484,8375,9676,647
Operating Profit80438361228988-128138299311166471,0051,110
OPM %7%3%4%5%2%-2%2%4%1%4%12%14%14%
Other Income63-2128172-230-5-73-116-8611,655569286851
Interest57951371058018642643236520682284
Depreciation260203262245172143252225211138999496
Profit before tax5506449512-394-463-613-475-1,4071,4271,0351,1691,861
Tax %33%158%48%-88%-17%-6%-17%-7%5%10%12%18%
Net Profit373-3724422-461-491-715-507-1,3311,2809139631,620
EPS in Rs5.82-0.563.900.37-7.33-7.83-11.47-8.03-21.129.686.336.3010.60
Dividend Payout %24%-213%31%214%0%0%0%0%0%0%0%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-109.92%759.46%-90.98%-2195.45%-6.51%-45.62%29.09%-162.52%196.17%-28.67%5.48%
Change in YoY Net Profit Growth (%)0.00%869.38%-850.44%-2104.47%2188.95%-39.11%74.71%-191.62%358.69%-224.84%34.15%

CG Power & Industrial Solutions Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-5%
5 Years:0%
3 Years:40%
TTM:16%
Compounded Profit Growth
10 Years:19%
5 Years:42%
3 Years:141%
TTM:9%
Stock Price CAGR
10 Years:31%
5 Years:125%
3 Years:92%
1 Year:112%
Return on Equity
10 Years:%
5 Years:%
3 Years:71%
Last Year:58%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital128125125125125125125125268288305305
Reserves3,4333,5194,1724,4643,9772,7572,005-2,081-3896961,4852,712
Borrowings2,0292,3962,0921,5281,5023,0413,2972,7571,4843671617
Other Liabilities4,4154,7885,3704,8314,5574,8874,8833,8163,0352,8702,8612,590
Total Liabilities10,00610,82811,76010,94910,16110,81110,3114,6174,3974,2224,6685,625
Fixed Assets2,8353,2414,1272,5881,7052,3642,0501,4891,1461,0819711,059
CWIP231218104906185912820353894
Investments79129944223120927913022411588
Other Assets6,1497,0707,0888,0408,1868,0838,0403,0983,2293,0643,6583,884
Total Assets10,00610,82811,76010,94910,16110,81110,3114,6174,3974,2224,6685,625

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 425320-672-61-540380811692-242483947397
Cash from Investing Activity -1,138-98429432497-1,031-745-178-51227-21-662
Cash from Financing Activity 79910157-22250514-213-528590-800-612-246
Net Cash Flow86232-871497-138-147-14297-91315-512

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow804.00381.00610.00287.0087.00-129.00135.00296.0029.00115.00280.00-15.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days9596194144124109773772636870
Inventory Days7567128598385844279484149
Days Payable1121112021321301301621431911079498
Cash Conversion Cycle5852120717764-1-63-4031521
Working Capital Days3033125953303-38-209-128-5949
ROCE %5%11%5%5%-4%-1%2%-4%8%43%62%47%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.70%52.70%55.65%58.12%58.13%58.12%58.12%58.12%58.12%58.12%58.11%58.09%
FIIs11.89%13.14%13.23%12.87%12.97%12.96%15.39%15.94%16.74%16.05%15.18%14.64%
DIIs6.37%5.77%5.28%5.68%7.57%8.32%7.17%7.74%7.83%9.15%10.09%11.07%
Public29.04%28.39%25.84%23.33%21.34%20.60%19.32%18.18%17.31%16.69%16.61%16.19%
No. of Shareholders1,53,3761,66,7451,72,3341,70,1431,77,3871,72,1311,73,0591,76,2101,84,0642,00,4972,58,5873,41,820

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Midcap Fund11,347,3142.17509.955,461,0802024-10-14107.79%
Motilal Oswal Midcap Fund9,500,0006.27426.935,461,0802024-10-1473.96%
Axis ELSS Tax Saver Fund8,899,3341.21399.945,461,0802024-10-1462.96%
Axis Growth Opportunities Fund5,461,0802.36245.425,461,0802024-10-140%
DSP Mid Cap Fund4,905,3171.38220.445,461,0802024-10-14-10.18%
Bandhan Sterling Value Fund4,000,0002.49179.765,461,0802024-10-14-26.75%
Franklin India Prima Fund3,620,6951.75162.715,461,0802024-10-14-33.7%
DSP Flexi Cap Fund3,165,7111.5142.275,461,0802024-10-14-42.03%
PGIM India Midcap Opportunities Fund3,085,9011.42138.685,461,0802024-10-14-43.49%
HSBC ELSS Tax saver Fund2,486,3003.3111.735,461,0802024-10-14-54.47%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)5.705.256.7214.92-21.12
Diluted EPS (Rs.)5.695.216.3514.10-21.12
Cash EPS (Rs.)9.976.927.0310.60-17.86
Book Value[Excl.RevalReserv]/Share (Rs.)19.7611.736.96-0.62-31.21
Book Value[Incl.RevalReserv]/Share (Rs.)19.7611.736.96-0.62-31.21
Revenue From Operations / Share (Rs.)52.6845.6638.5722.1581.53
PBDIT / Share (Rs.)8.086.954.841.640.71
PBIT / Share (Rs.)7.466.334.130.60-2.66
PBT / Share (Rs.)7.586.567.1810.67-22.34
Net Profit / Share (Rs.)9.356.316.339.56-21.24
NP After MI And SOA / Share (Rs.)9.346.306.339.68-21.12
PBDIT Margin (%)15.3415.2112.537.380.87
PBIT Margin (%)14.1613.8610.712.71-3.26
PBT Margin (%)14.3914.3718.6248.15-27.39
Net Profit Margin (%)17.7413.8116.4143.17-26.05
NP After MI And SOA Margin (%)17.7313.8016.4043.69-25.90
Return on Networth / Equity (%)47.2953.7690.89-1529.160.00
Return on Capital Employeed (%)37.0252.2543.5810.0413.06
Return On Assets (%)25.3620.7921.5929.42-28.45
Long Term Debt / Equity (X)0.000.000.30-9.87-0.29
Total Debt / Equity (X)0.000.000.35-11.38-0.83
Asset Turnover Ratio (%)1.571.561.250.590.46
Current Ratio (X)1.641.140.850.680.36
Quick Ratio (X)1.350.940.670.560.30
Inventory Turnover Ratio (X)8.348.748.234.602.66
Dividend Payout Ratio (NP) (%)13.9123.790.000.000.00
Dividend Payout Ratio (CP) (%)13.0421.660.000.000.00
Earning Retention Ratio (%)86.0976.210.000.000.00
Cash Earning Retention Ratio (%)86.9678.340.000.000.00
Interest Coverage Ratio (X)485.9665.5010.231.110.13
Interest Coverage Ratio (Post Tax) (X)335.5046.966.95-0.34-0.28
Enterprise Value (Cr.)81616.1845109.1127151.209375.301747.64
EV / Net Operating Revenue (X)10.146.474.883.160.34
EV / EBITDA (X)66.1242.5138.9442.8339.14
MarketCap / Net Operating Revenue (X)10.256.574.913.020.06
Retention Ratios (%)86.0876.200.000.000.00
Price / BV (X)27.3325.5927.18-105.61-0.16
Price / Net Operating Revenue (X)10.256.574.913.020.06
EarningsYield0.010.020.030.14-4.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of CG Power & Industrial Solutions Ltd as of October 15, 2024 is: ₹1,627.70

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 15, 2024, CG Power & Industrial Solutions Ltd is Undervalued by 95.40% compared to the current share price ₹833.00

Intrinsic Value of CG Power & Industrial Solutions Ltd as of October 15, 2024 is: ₹3,269.92

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 15, 2024, CG Power & Industrial Solutions Ltd is Undervalued by 292.55% compared to the current share price ₹833.00

Last 5 Year EPS CAGR: 100.89%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 16.25, which is a positive sign.
  2. The company has higher reserves (2,229.17 cr) compared to borrowings (1,710.50 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 14.92%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 31.42, which may not be favorable.
  3. The company has not shown consistent growth in sales (7.00) and profit (-63.15).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in CG Power & Industrial Solutions Ltd:
    1. Net Profit Margin: 17.74%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 37.02% (Industry Average ROCE: 15.63%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 47.29% (Industry Average ROE: 19.07%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 335.5
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.35
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 142 (Industry average Stock P/E: 143.14)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

CG Power and Industrial Solutions Ltd. is a Public Limited Listed company incorporated on 28/04/1937 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1937PLC002641 and registration number is 002641. Currently Company is involved in the business activities of Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus. Company’s Total Operating Revenue is Rs. 5159.18 Cr. and Equity Capital is Rs. 288.37 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - General6th Floor, C G House, Mumbai Maharashtra 400030investorservices@cgglobal.com
http://www.cgglobal.com
Management
NamePosition Held
Mr. Vellayan SubbiahChairman
Mr. Natarajan SrinivasanManaging Director
Mr. M A M ArunachalamNon Executive Director
Mr. P S JayakumarIndependent Director
Ms. Sasikala VaradachariIndependent Director
Mr. Sriram SivaramIndependent Director
Mr. Kalyan Kumar PaulNon Executive Director
Mrs. Vijayalakshmi R IyerIndependent Director

FAQ

What is the latest fair value of CG Power & Industrial Solutions Ltd?

The latest fair value of CG Power & Industrial Solutions Ltd is ₹1627.70.

What is the Market Cap of CG Power & Industrial Solutions Ltd?

The Market Cap of CG Power & Industrial Solutions Ltd is 1,27,277 Cr..

What is the current Stock Price of CG Power & Industrial Solutions Ltd as on 15 October 2024?

The current stock price of CG Power & Industrial Solutions Ltd as on 15 October 2024 is ₹833.

What is the High / Low of CG Power & Industrial Solutions Ltd stocks in FY 2024?

In FY 2024, the High / Low of CG Power & Industrial Solutions Ltd stocks is 875/359.

What is the Stock P/E of CG Power & Industrial Solutions Ltd?

The Stock P/E of CG Power & Industrial Solutions Ltd is 142.

What is the Book Value of CG Power & Industrial Solutions Ltd?

The Book Value of CG Power & Industrial Solutions Ltd is 19.8.

What is the Dividend Yield of CG Power & Industrial Solutions Ltd?

The Dividend Yield of CG Power & Industrial Solutions Ltd is 0.16 %.

What is the ROCE of CG Power & Industrial Solutions Ltd?

The ROCE of CG Power & Industrial Solutions Ltd is 46.6 %.

What is the ROE of CG Power & Industrial Solutions Ltd?

The ROE of CG Power & Industrial Solutions Ltd is 57.8 %.

What is the Face Value of CG Power & Industrial Solutions Ltd?

The Face Value of CG Power & Industrial Solutions Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in CG Power & Industrial Solutions Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE