Multibagger stock: 12,500% returns in 5 yrs! This power company to report Q4 results; check previews & targets

CG Power Q4 results preview: Multibagger stock CG Power and Industrial Solutions is set to announce its results for the quarter and financial year ended on March 31, 2025 on Tuesday, May 06, 2025. Analysts tracking the stock are expecting the company to report a decent set of performance for January-March 2025 period.

Brokerage firms are expecting the CG Power to report a double digit growth in revenue, ebitda and net profit on a year-on-year (YoY) basis, while its growth on quarter-on-quarter (QoQ) basis is seen in single digits. Ebitda margins is likely to expand around 50-100 basis points (bps) on sequential basis, with a decent product mix across all segments.

Kotak Institutional Equities is expecting CG Power to clock a revenue of Rs 2,695.2 crore, up 23 per cent YoY and 7.1 per cent QoQ. Ebitda is seen at Rs 369.1 crore, up 30 per cent YoY and 11.5 per cent QoQ, with margins expanding 53 bps to 13.7 per cent. Net profit may come in at Rs 281.9 crore, up 20.7 per cent YoY and 18.5 per cent QoQ.

"We expect a 23 per cent growth in revenue due to strong yoy growth in industrial systems and similar strength in the power systems business (strong order inflows). We expect a 70 bps higher YoY Ebitda margin at 13.7 per cent, as we expect better pricing in power systems and improvement in industrial systems," Kotak added, with a 'sell' tag and a target price of Rs 520.

Shares of CG Power rose another 2 per cent to Rs 646.30 on Tuesday, with a total market capitalization close to 98,000 crore. The stock has surged more than 12,500 per cent in five years. It was around Rs 5 during the covid-19 pandemic sell-off. Despite this stellar rise, the stock is 25 per cent below its 52-week high at Rs 874.50.

Equirus Securities is expecting CG power to report a revenue at Rs 2,672.4 crore, up 22 per cent YoY and 6 per cent QoQ. Ebitda is seen at Rs 374.8 crore, up 32 per cent YoY and 13 per cent QoQ, with Ebitda margins expanding 86 bps QoQ to 14 per cent. Net profit is seen at Rs 277.9 crore, up 16 per cent YoY and QoQ.

"We estimate revenue growth driven by 16 per cent and 26 per cent growth in power systems (very high base) and industrial systems (weak base). OB has surged in recent quarters. Margins of Power Systems to moderate a bit on Qoq basis while Industrial Systems should improve Qoq significantly off a weak base," it said, which has a 'reduce' rating and a target price of Rs 595.

Nuvama Institutional Equities is modeling a revenue of Rs 2,696.2 crore, up 23 per cent YoY and 7 per cent QoQ. Ebtida is pegged at Rs 350.8 crore, rising 24 per cent YoY and 6 per cent QoQ. Core profit is likely to come in at Rs 311.7 crore. It believes margins to remain at 13-15 per cent levels.

"Given higher competitive intensity in the short-cycle LT motors segment, CG Power may find it challenging to up its industrial margin levels. With increasing market share in LT motors segment via railways and right product-mix, we believe CGPIL will showcase execution led earnings growth going ahead. We believe CG to be a key tier 2/3 components supplier for Railways capex," said Nuvama.