Shares of CG Power fell by 7.5% following a government order allowing four Chinese-linked power equipment firms to bid for government projects, which may increase competition in the sector.

CG Power is well positioned in power transformers and switchgears, with growth opportunities in power transmission extending beyond HVDC.

CG Power Industrial Solutions is expanding its semiconductor ambitions beyond chip packaging, exploring investments in semiconductor design startups and AI-focused technologies through its subsidiary Axiro.

Equirus maintained a Reduce rating on the shares of CG Power, setting a target price of Rs 875 apiece, indicating a downside potential of more than 10% from the previous closing price.

CG Power has successfully transformed from a struggling entity with significant debt to a profitable company valued at ₹1 Lakh Crore, following a strategic takeover by Tube Investments of India and operational improvements. The company is now focusing on expanding into semiconductors, EV components, and power infrastructure.

The company is well-positioned to benefit from India's multi-year electrification, grid modernization, and railway capex cycle, with a strong order book of 27,484 crore and plans for transformer capacity expansion.

Pankaj Pandey highlighted CG Power as a strong investment opportunity within the power sector, particularly in the context of increasing investments in transmission capacity.

CG Power is mentioned as one of the companies approved for semiconductor projects under the India Semiconductor Mission, which aims to develop a domestic semiconductor ecosystem in India.