1. At a Glance
CG Power is like that student who once flunked in every subject (2016–2020) but then came back under Murugappa Group, started hitting centuries in every exam, and now wants to open an IIT and an ISRO of its own. Sales crossed ₹10,500 Cr in FY25, profits at ₹1,000 Cr, ROE at a desi-style 28%. The company’s order book is fatter than a Sharma Ji ka wedding invitation list – ₹10,631 Cr – and they’ve even decided to enter semiconductors with a ₹7,600 Cr project. From bankruptcy candidate to Next 50 index darling, CG Power is the official “glow-up” story of Dalal Street.
2. Introduction
Once upon a time, CG Power (then Crompton Greaves Power) was the poster child of bad governance – losses, debt, auditors running faster than Ola drivers, and boardrooms full of chaos. Then Murugappa Group swooped in like a strict South Indian parent and said: beta, thoda padhai likhai karo. And boy, did it work.
Fast forward to FY25: CG Power has transformed into an engineering powerhouse making motors, transformers, switchgears, traction systems for Vande Bharat, and now… semiconductors. Yes, from motors to microchips – the glow-up is so dramatic that even Bollywood would be jealous.
But, at CMP ₹680 and a P/E of 107x, the stock trades like Apple in Silicon Valley – except this is Bhopal, Nashik, and Ahmednagar. Question is: can it live up to its new avatar, or is this another “engine overheating before the race”?
3. Business Model (WTF Do They Even Do?)
CG Power’s empire rests on two broad kingdoms:
- Industrial Systems (64% revenue FY25):
- Low tension motors, high tension motors, pumps, fans.
- Market leader in AC motors, #2 in AC generators & DC motors.
- Also makes traction motors, propulsion & signaling systems for Indian Railways.
- Recently launched Fluxtron – high-efficiency motors, because everything needs a cool Marvel-style name.
- Power Systems (35% revenue FY25):
- Transformers (distribution, power, EHV, MV), switchgears, breakers, arresters, isolators.
- EPC solutions for sub-stations and T&D projects.
- Transformer capacity at Bhopal being doubled, and another 45,000 MVA greenfield plant planned.
Add-ons:
- Distribution: 450+ channel partners, 500+ service partners.
- Semiconductors: Joint venture with Renesas Japan & Stars Thailand – Sanand, Gujarat plant (₹7,600 Cr capex, 15M units/day capacity).
- Acquisitions: G.G. Tronics (for KAVACH train collision systems), Renesas RF Components, and bidding for transformer companies.
So yeah – they make everything from a household water pump (SmartSENSE) to chips that could one
