Dividend Alert: CG Power Sets Rs 1.30 Payout With 22nd March Record Date; Is Rs 800 The Next Target?

The engineering giant CG Power and Industrial Solutions Limited has its primary headquarters in Mumbai, India. With two business lines-Industrial Systems and Power Systems-the company is a leader in the electrical engineering sector. It produces a variety of induction motors, drives, transformers, switchgear, and other corresponding products for the industrial and power sectors in addition to traction motors, propulsion systems, signaling relays, and other items for the Indian Railways. Additionally, the corporation sells consumer appliances such as water heaters, pumps, and fans. The company employs over 3,113 individuals and has 18 top-notch production facilities spread across 9 sites in India and one in Sweden. It also has a Pan-India network of 5 Regional and 14 Branch offices. For FY24, the company's total revenue was Rs 8,046 crores. The company joined the well-known Murugappa Group in November 2020. Following the Board's announcement of an interim dividend of 65% for FY25, CG Power and Industrial Solutions' shares closed Wednesday's trading session on the BSE 4.35% higher at Rs 662.50 per share, with a market capitalization of Rs 1,01,287.60 Cr.

CG Power Dividend

"In furtherance to our letter dated 11th March, 2025 and pursuant to Regulation 30 and 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company at its Meeting held today i.e. 18th March, 2025 have considered and approved the payment of Interim Dividend at Rs. 1.30/- per Equity Share i.e. 65% on face value of Rs. 2/‐ per share for the Financial Year 2024-25. The Record Date for determining the Members eligible to receive aforesaid Interim Dividend is Saturday, 22nd March, 2025. The Interim Dividend will be paid on or after 16th April, 2025, but within 30 days from the declaration of Interim Dividend in terms of the relevant provisions of the Companies Act, 2013," said CG Power and Industrial Solutions in a stock exchange filing.

CG Power News

On March 11, CG Power and Industrial Solutions Ltd. (CG) and M/s Kinet Railway Solutions Limited signed a long-term supply agreement for the delivery and maintenance of railway products, such as propulsion kits with motors, transformers, and other items. In accordance with this arrangement, the company has obtained the first purchase order for the delivery of railway products for ten Vande Bharat trainsets, with a budget ranging from Rs. 400 crores to Rs. 450 crores. The aforementioned long-term deal also includes a supplementary 35-year service order in addition to this purchase order.

"With a legacy spanning over 86 years, CG has established a strong foothold in the Railway Industry, offering a comprehensive portfolio that includes: Traction Machines & Systems, Rail Transportation Traction Electronics (complete Railway Propulsion Systems), and Railway Signalling Products (Electro-Mechanical Signalling Products). Recently, the Company also forayed into the Train Collision Avoidance System (TCAS) or KAVACH domain," CG Power and Industrial Solutions said in a regulatory filing.

CG Power Share Price Target

Hardik Matalia - Derivative Analyst at Choice Broking said, "CGPOWER is currently trading at ₹663.30, on the verge of breaking out of its consolidation range. The stock has witnessed a decline of nearly 33% from its peak and has since consolidated near the lower levels, indicating a potential base formation. A strong bullish candle on the daily chart further reinforces buying interest and signals strength in price action."

"On the daily timeframe, the stock has surpassed its 20-day, 50-day, and 200-day EMAs, indicating a shift in momentum towards bullishness. The Relative Strength Index (RSI) is at 63.12, trending upwards, which suggests increasing strength and positive sentiment. If CGPOWER manages to hold above ₹685, it could confirm a breakout and open the doors for a further upside move towards the ₹775-₹800 range in the near term," the analyst added.

"For short-term traders, buying at current levels could be an opportunity to capitalize on the bullish momentum, while long-term investors can also consider accumulating at current prices. Additionally, any dip in the stock could provide further buying opportunities to add to positions, considering the strong technical outlook," Hardik Matalia further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.