CG Power shares climb over 4% after UBS hikes target price, predicts 34% upside
Shares of CG Power surged 4% to Rs 660 on BSE after UBS raised the stock's target price to Rs 850, implying a 34% upside potential. UBS lauded CG Power's capital allocation strategy and highlighted its profitability and value potential.
Shares of climbed over 4% to Rs 660 during Thursday's intraday trading on after the global brokerage firm maintained its buy rating and raised the 's to Rs 850 from Rs 580. This adjustment suggests an upside potential of 34% from the previous day's closing price of Rs 631.8 apiece.The brokerage firm suggests that the company is a prudent capital allocator and timely fund allocation will drive the in the coming quarters. Furthermore, medium-term are in place on the back of robust .
"The company possesses best-in-class and significant option value," UBS said in a note.
UBS also highlighted a lack of consensus on the potential for faster and better margins. They emphasised key value drivers over the next 12-24 months and urged a closer examination of critical variables.
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As of 11:39 am, the stock was trading at Rs 660.4 on the BSE. Notably, it has recorded a remarkable surge of over 70% in the past one year and has delivered multibagger returns of 270% in the last two years.
In Q4 FY24, the company reported a 10% dip in consolidated net profit to Rs 234 crore as against Rs 260 crore in the year-ago period. However, total income rose to Rs 2,239.83 crore in Q4 FY24 from Rs 1,917.05 crore in the year-ago period.
In technical terms, the relative strength index (RSI) of the stock is currently at 62, signalling it's neither trading in the overbought nor in the oversold territory. Additionally, the MACD is at 29.7, which is above its center line, but below the signal line.
stood higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMAs).
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Source: Stocks-Markets-Economic Times
