UBS sees 35% potential upside in this heavy electrical equipment company: Check details
Taking into cognisance the robust capital allocation, the brokerage firm UBS has retained its buy call on CG Power and Industrial Solutions.
Foreign brokerage UBS has retained its ‘buy’ view on CG Power and Industrial Solutions with a raised target of Rs 850 per share. The new target implies a possible upside potential of 35 per cent in the stock.
The brokerage believes that the company has made capital allocation prudently and timely capacity will facilitate bottomline at the company. Furthermore, medium term demand drivers are in place on the back of robust capital allocation.
Besides, the company offers the best-in-class profitability and significant option value.
CG Power shares have recorded gains to the tune of 65 per cent in the last one month, while its 1-month return is at 13 per cent.
The company in an exchange filing earlier this month stated that it received a demand order by the GST department imposing penalty to the tune of Rs 70,279 on account of excess refund received for FY 2018- 19.
There is no material impact on financial, operations or other activities of the company, it added.
CG Power Q4 results
Earlier in May, the company posted a 10 per cent dip 10 per cent dip in consolidated net profit to Rs 234 crore for March quarter FY24, mainly due to higher expenses.
Its net profit (from continuing operations) was Rs 260 crore in the quarter ended March 31, 2023, a regulatory filing said. Total income rose to Rs 2,239.83 crore from Rs 1,917.05 crore in the year-ago period. Total expenses also surged to Rs 1,932.80 crore from Rs 1,654.63 crore in the same period a year ago.
However, consolidated net profit (from continuing operations) rose to Rs 871 crore in fiscal 2023-24 from Rs 796 crore in 2022-23.
(With PTI inputs)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
NPS Vatsalya Calculator: How your Rs 1,000 monthly contribution can help your child get Rs 15.10 crore at retirement; see calculations
Top 7 mutual funds in the last 10 years: What Rs 10,00,000 lump sum investment in each is worth now?
EPFO calculator: Know how on Rs 21,000 basic salary you can accumulate over Rs 2 crore corpus at retirement
70:15:15 Investment Strategy: Can you build over Rs 1.5 crore retirement corpus with just Rs 20,000 salary? Know how
SIP+SWP: Rs 21,000 monthly SIP investment for 20 years and then Rs 1,20,000 monthly income for 43 years; know it can be possible
09:12 AM IST