Motilal Oswal has maintained its buy rating on CG Power and Industrial Solutions with a revised target price of ₹975, down from the previous target of ₹990. According to the research report dated July 24, 2026, the brokerage expects the stock to benefit from capacity expansion at power systems for transformers and switchgear & circuit breakers, price hikes and gradual demand recovery in the industrial segment, and reduction of losses at CG-SEMI by FY28.
CG Power's first quarter FY27 results were below Motilal Oswal's estimates, with margin performance remaining strong for the power systems segment but impacted by one-time provisions for the industrial segment and continued high losses for the semiconductor segment. As reported by Motilal Oswal, the pace of inflows has moderated, with consolidated order inflows flat year-on-year at ₹52 billion for the quarter. The overall order book stood at ₹189 billion, up 45% year-on-year, with inflows expected to start ramping up from the next quarter.
The stock currently trades at 87.8x/65.8x/52.0 P/E on FY27E/FY28E/FY29E EPS respectively. According to the research report, Motilal Oswal has cut its estimates by 3%/4% for FY27/28 to account for the Q1FY27 performance. The brokerage maintains its buy rating with a revised target price of ₹975 based on sum-of-the-parts valuation methodology.
Motilal Oswal expects CG Power to benefit from multiple growth drivers including capacity expansion at power systems, price hikes and gradual demand recovery in the industrial segment, and reduction of losses at CG-SEMI by FY28. The brokerage anticipates that inflows, particularly for the power systems segment, will start ramping up from the next quarter, supporting the positive investment thesis.
