CG Power and Industrial Solutions Ltd Stock Analysis

BSE: 500093 | NSE: CGPOWER | Electric Equipment | Large Cap

BSE Share Price Jul 05, 18:01
194.50 7.90 (4.23%)

DeciZen - Make an Informed Decision on CG Power & Indl.Soln

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

FAQs

1. Is CG Power and Industrial Solutions Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that CG Power and Industrial Solutions Ltd is a below average quality company.

2. Is CG Power and Industrial Solutions Ltd undervalued or overvalued?

The key valuation ratios of CG Power and Industrial Solutions Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is CG Power and Industrial Solutions Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of CG Power and Industrial Solutions Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of CG Power & Indl.Soln:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
CG Power and Industrial Solutions Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 9.5%1.9%4.6%0.3%-9.1%-5%-7.7%-2.1%-35.8%26.9%-
Value Creation Index -0.3-0.9-0.7-1.0-1.7-1.4-1.6-1.2NA0.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 11,24912,09413,6325,50511,3999,0118,3647,9985,1102,9645,561
YoY Gr. Rt. %-7.5%12.7%-59.6%107.1%-21%-7.2%-4.4%-36.1%-42%-
Adj EPS 5.70.52.7-0.9-10.3-7.1-12.1-6.7-21.91.16
YoY Gr. Rt. %--91.2%448%-131.4%NANANANANANA-
BVPS (₹) 56.15557.768.673.265.54634-31.5-0.97.1
Adj Net Profit 36231.9172-53.8-648-445-760-420-1,375149913
Cash Flow from Ops. 413425320-672-60.8-540380811692-242-
Debt/CF from Ops. 2.54.87.5-3.1-32.8-3.7844-6.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -13.8%-23.6%-29.2%-42%
Adj EPS -16.5%NANANA
BVPS -163.3-141.6-127.10
Share Price 4% 18.6% 97.6% 145.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 10.50.94.8-1.4-14.6-10.2-21.8-16.8-1731-14.5194.8
Op. Profit Mgn % 7.13.24.56-0.5-1.70.44.823.911.8
Net Profit Mgn % 3.20.31.4-1-5.7-4.9-9-5.3-27.14.516.4
Debt to Equity 0.30.60.70.50.40.51.11.5-1.4-120.3
Working Cap Days 146152149394191227291345325206146
Cash Conv. Cycle 6166621507278735212-340

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 194.80%

Sales growth is good in last 4 quarters at 108.13%

Sales growth has been subdued in last 3 years -29.23%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - CG Power and Industrial Solutions Ltd.

Standalone Consolidated
TTM EPS (₹) 4.1 6
TTM Sales (₹ Cr.) 5,159 5,561
BVPS (₹.) 12.4 7.1
Reserves (₹ Cr.) 1,587 771
P/BV 15.70 27.39
PE 47.37 32.30
From the Market
52 Week Low / High (₹) 71.00 / 219.60
All Time Low / High (₹) 1.35 / 349.00
Market Cap (₹ Cr.) 29,702
Equity (₹ Cr.) 305.4
Face Value (₹) 2
Industry PE 57.9

Management X-Ray of CG Power & Indl.Soln :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.0095.9495.8395.8095.8095.8097.06
* Pledged shares as % of Promoter's holding (%)

Event Update

Login/Register to view analysis.

Analyst's Notes

Login/Register to view analysis.

News

About CG Power and Industrial Solutions Ltd

Crompton Greaves was established in 1937; is a flagship company of the $3 bn Avantha Group. It was earlier known as Crompton Parkinson Works.

CGL is engaged in designing, manufacturing and marketing electrical products and services related to power generation, transmission and distribution. The company ventures into three business groups such as power systems, industrial systems, and consumer products.

Crompton Greaves exports it wide range of products to over 60 countries across globe. In transformer business the company is a market leader and commands a market share of 18%.

In India the company has 22 manufacturing divisions spread across in Gujarat, Maharashtra, Goa, Madhya Pradesh and Karnataka along with this it has marketing and service network of 14 branches across various states. It has four regional sales offices located in Delhi, Kolkata, Mumbai and Chennai.

It has a large customer base, which includes State Electricity Boards, Government bodies and large companies in private and public sectors.

Crompton Greaves concluded an agreement with Nelco on April 2010, to acquire its traction electronics, SCADA and industrial drives businesses, on a slump sale basis. The value of the acquisition was about Rs 92 crore and this acquisition enabled the company to become a stronger and more comprehensive player in the railways business segment and build capabilities in drives by better leveraging on its existing product portfolio.

In June 2010 it has set up a new transformer manufacturing facility in Washington, Missouri, U.S.A. with an initial investment of $20 million through its subsidiary CG Power Systems USA.

It received Scheme of Amalgamation with Brook Crompton Greaves (BGCL), a wholly owned subsidiary of the company on July 2010

In August 2010 Crompton Greaves, through its subsidiary CG Holdings Belgium NV, has entered into one more definitive Memorandum of Undertaking with the EIC Group, headquartered in Saudi Arabia, for establishing a second Joint Venture (JV) Company in order for consolidating its business presence in the EPC segment in Middle East countries.

In September 2010 Crompton Greaves has entered into a Joint Venture (JV) pact with Spain headquartered -- ZIV Aplicaciones y Tecnologia, S.L (ZIV) -- to establish a JV Company in India, for the manufacture of Substation Automation Systems for Substations in EHV and UHV range, including protective relays, differential relays, bay control units, bus-bar systems, substation units, etc.

In November 2010 Crompton Greaves power products firm, part of the $4 billion Avantha Group, has won the CII-EXIM Bank 2010 awards for business excellence. The awards were distributed on the inaugural day of the three day National Quality Summit 2010, organized by Confederation of Indian Industry CII.The awards are given to companies in manufacturing and services sector in recognition of highest quality measured across various parameters by the CII and Export Import (EXIM) Bank.

In January 2011, directors approved a Scheme of Amalgamation of CG Capital & Investments Limited (a wholly owned subsidiary) with Crompton Greaves Limited. The amalgamation will be effective from April 01, 2010 (Appointed Date), subject to receipt of all Regulatory approvals.

Products

Power Systems- Under this it manufactures transformers, switchgears and power quality products like harmonic filters, power quality monitors, transient suppressors, current limiting reactors and reactive power compensation systems. It also offers power quality services such as audits, system design, consulting etc. It also undertakes engineering projects providing total solution for power transmission and distribution.

Industrial systems- Under this segment it manufactures and markets wide range of electric motors such as Fractional Horse Power Motors, LT Motors, HT Motors, DC Machines, Stampings, Traction Motors and Alternators, Electrical Control Panels for diesel electric locomotives and Railway Signaling Products.

Consumer Products- It manufactures consumer products such as fans, lamps, pumps and a range of electrical appliances such irons, mixers, etc.

It also manufactures telecom solutions such as switching, transmission and access products for telecommunications network and information technology services.

Milestones

It was first company to introduce an under light ceiling fan in the year 1989.

It was first to introduce 12 inch wall fan in high speed.

The company’s research and development and quality division has been certified to ISO 27001:2005 by UL India.

Its industrial transformer division located at Malanpur is amongst the few units in India, to have been accredited both ISO 14001 and OHSAS 18001, certification for occupational health and safety management system.

2010
- Crompton Greaves Ltd has entered into a Joint Venture Agreement with ZIV Aplicaciones y Tecnologia, S.L (ZIV)., headquartered in Spain, for establishing a Joint Venture Company in India, for the manufacture of Substation Automation Systems for Substations in EHV and UHV range, including protective relays, differential relays, bay control units, bus-bar systems, substation units, etc
2011
- Company has been awarded a contract as franchisee of Maharashtra State Electricity Distribution Company Ltd. for power distribution in Jalgaon Circle in Maharashtra for a period of 10 Years.
- CG acquires New Jersey based QEI Inc.
- Crompton Greaves Ltd acquires Sweden based Emotron Group.
2012
- Crompton Greaves Acquires leader in smart Grid Automation : ZIV Group.


Read More Read Less