This Murugappa Group stock has zoomed 100% in 11 weeks

Shares of CG Power and Industrial Solutions were locked in 5 per cent upper circuit for the second straight day, at Rs 157.65 on the BSE on Wednesday. The stock was trading at its multi-year high level. In the past four trading days, it has gained 15 per cent after the company reported an all round improvement in performance during July-September quarter (Q2FY22).

In the past 11 weeks, the stock has rallied 110 per cent from a level of Rs 75.20 touched on August 11, 2021. In comparison, the S&P BSE Sensex was up 12.8 per cent during the same period. Further, it has zoomed 3,261 per cent from its March 2020 low of Rs 4.69 on the BSE.

Till 12:02 pm, a combined nearly 1 million equity shares had changed hands and there were pending buy orders for around 980,000 shares on the NSE and BSE. Currently, CG Power is trading under T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

CG Power is a Murugappa Group company. Tube Investments of India, the promoter of CG Power, held 52.65 per cent stake in the company as on September 30, 2021. CG Power is primarily a B2B company which operates across two major lines of businesses i.e. Power Systems Business Unit and the Industrial Systems Business Unit.

For Q2FY22, CG Power reported standalone sales of Rs 1,352 crore, highest in the last ten quarters, and a standalone profit before tax (PBT) of Rs 137 crore, highest recorded in the last 20 quarters.  In Q2FY21, the company had posted sales of Rs 565 crore and loss before tax of Rs 40 crore.

The company said it had the benefit of uninterrupted working in Q2 and all the businesses have performed satisfactorily, improving capacity utilisation. "On sequential basis, sales increased by 42 per cent and PBT by 88 per cent, signalling a recovery in business performance. The free cash flow generation for the quarter stands at Rs 111 crore during the quarter," the company said.

On consolidated basis, the company reported 119 per cent year-on-year (YoY) jumped in sales at Rs 1,454 crore in Q2FY22. It posted consolidated PBT of Rs 144 crore against loss of Rs 37 crore in a year ago quarter.

At the end of Q2FY22, the company’s industrial systems segment have Unexecuted order book of Rs 1,585 crore and power systems of Rs 1,259 crore.

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