CG Power & Solutions share price continued the downward trend for fifth session straight, fell over 12 per cent on Tuesday on National Stock Exchange (NSE). The stock, which started the day at ₹599.00, dropped to an intraday low of ₹517.75, indicating heavy selling pressure.
With a total trading value of ₹489 crore and a volume of 93.43 lakh shares, the decline has sparked concerns among investors.
CG Power shares experienced substantial selling pressure on the NSE, with a total trading volume of 121.75 lakh shares and a traded value of ₹666.34 crore as of 12:30 PM today.
The company’s market capitalization is currently ₹84,119.85 crore, with a free float market cap of ₹35,311.08 crore. Despite strong fundamentals, the stock has experienced volatility, fluctuating within a 52-week range of ₹420 to ₹874.50.
The significant decline is linked to broader market fluctuations, driven by profit booking and weakness in the sector.
What’s behind the plunge?
The company has been facing increasing raw material costs, especially for copper and aluminum, which are essential for its electrical equipment business. These rising costs have put pressure on margins and affected profitability.
The demand for CG Power’s products, especially in the infrastructure and industrial sectors, has been inconsistent due to economic instability and delays in project approvals. This has affected the company’s revenue growth.
CG Power’s stock has demonstrated a strong performance over the past year, with an 18.55 per cent increase. However, year-to-date (YTD), the stock has dropped by 25.77 per cent, showing a 24.91 per cent decline over the last six months and a 22.75 per cent decrease over the past three months.
The company’s net profit declined by 8.8 per cent compared to the same quarter last year, reaching ₹221 crore, while its Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) decreased by 4.6 per cent year-on-year to ₹294.7 crore for the September quarter.
The company is engaged in design, manufacturing, and marketing of products related to power generation, transmission, and distribution & Rail Transportation.
