Investing in the stock market can be a daunting task, often requiring extensive research and a healthy dose of patience. However, for those who are willing to dive deep, opportunities can arise that yield impressive returns. One such opportunity lies with CG Power and Industrial Solutions, a remarkable penny stock that has demonstrated extraordinary growth over the years.
The Incredible Rise of CG Power
Once trading at just ₹5.85 in 2020, CG Power and Industrial Solutions has soared to a staggering ₹638 on the Bombay Stock Exchange (BSE). This remarkable increase translates to an astonishing 10,923% surge over the past five years. To put this in perspective, an investment of ₹1 lakh made five years ago would have blossomed into ₹1.09 crore today.
- 2020 Price: ₹5.85
- Current Price: ₹638
- Five-Year Growth: 10,923%
- Investment Growth: ₹1 lakh to ₹1.09 crore
Recent Performance Trends
On a recent trading day, shares of CG Power saw an uptick of 1.53%, reflecting positive market trends. Long-term investors have benefited immensely, witnessing a phenomenal 13,838.31% increase over the past 25 years. Over the last year alone, the stock has gained 34.44%, although it has faced volatility recently, dropping over 12.50% in the last six months. Notably, it has managed to climb 10.23% in just the past month, despite broader market challenges.
- 1-Year Surge: 34.44%
- 6-Month Drop: 12.50%
- Monthly Increase: 10.23%
- Year-to-Date Decline: 13.10% (from ₹741)
Dividend Announcement
In exciting news for shareholders, CG Power recently announced an interim dividend of ₹1.30 per equity share, equating to 65% of the face value of ₹2 per share for the financial year 2024-25. The company’s board confirmed this decision during their meeting on March 18, 2025.
- Dividend Amount: ₹1.30 per share
- Record Date: March 22, 2025
- Payment Date: On or after April 16, 2025
Financial Insights
In their latest quarterly results for Q3 FY25, CG Power reported a 68% drop in net profit, totaling ₹237.85 crore compared to the previous year. However, total income surged by 27% year-on-year, reaching ₹2,549.28 crore. The power systems segment was a significant driver, achieving 42% revenue growth to hit ₹920 crore.
- Q3 FY25 Net Profit: ₹237.85 crore
- Total Income: ₹2,549.28 crore (up 27%)
- Power Systems Revenue Growth: 42%
To further enhance its market position, the company has also approved a ₹712 crore investment to establish a 45,000 MVA transformer manufacturing facility in western India, with plans for completion by FY28. This strategic expansion aims to cater to the growing domestic and export market demands.
Investing in stocks, especially in volatile sectors like industrial solutions, requires a well-informed approach. For investors considering CG Power, keeping an eye on its performance, dividends, and strategic growth plans will be essential in navigating this promising yet unpredictable market landscape.
