INDIA - India Domestic Index will take place as of the close of February 28, 2023.

According to the company, Shares of CG Power and Industrial Solutions Ltd (CG Power) have given a multi-bagger return in nine months by rising more than 109% during the period, from $1,94 USD apiece level in May last year to currently hovering around $4,02 USD on the BSE at Monday's early deals. The rally comes amid global index provider MSCI adding CG Power to the India index, and the change in constituents for the MSCI India Domestic Index will take place as of the close of February 28, 2023. CG is an engineering conglomerate with a diverse portfolio of products, solutions, and services for Power and Industrial equipment and solutions. The multi-bagger stock has gained more than 39% in a month.

The company's board had also approved a proposal to expand the manufacturing capacity of the power transformer and distribution transformer units of the company at its plants in Malanpur and Bhopal at an investment of $1.65 million. The proposed expansion would increase the capacity from 17,000 MVA to 25,000 MVA for power transformers and from 6,900 MVA to 9,900 MVA for distribution transformers.

"CG Power delivered a beat on consensus by 7% on EBITDA led by significant expansion in industrial OPM driven by better realization, volumes, product mix, and moderation in input costs. 9M order inflows/revenues grew 22%/27% $716 million/$665 million from strong pharma, infra, sugar, and renewables demand. CG Power's thrust (capex in power/industrial plant expansions) to capture a larger piece of the pie in domestic demand, ramp-up exports (motors, transformers), etc. will be key triggers. Capital allocation, particularly towards industrial product expansion remains a key long-term catalyst," said brokerage Nuvama Research in a note last month on the company's Q3 results.

Source: Mint