CG Power and Industrial Solutions shares rose as much as 3 percent on November 27 after the company's arm--G.G.Tronics India, bagged an order from Chittaranjan Locomotive Works, West Bengal.
The value of the order is in the range of Rs 500-600 crore, with an execution time frame of one year, the company stated in an exchange filing.
At 10.16 am, shares of CG Power and Industrial Solutions were trading at Rs 747 on the NSE.
The order includes the supply, installation, testing, and commissioning of Onboard KAVACH equipment as per RDSO (Research Designs and Standards Organisation is the technical wing of the Indian Railways) specifications, along with annual maintenance for 11 years. The supply scope also covers complete wiring, harnessing, cabling, and integration with the Loco KAVACH system.
Onboard KAVACH is an advanced train safety system developed by Indian Railways. It is designed to prevent train collisions and ensure the safety of passengers and crew. The system uses a combination of sensors, communication devices, and onboard equipment to detect signals, track conditions, and train movements.
Follow our market blog to catch all the live action
KAVACH, which stands for Knowledge-based Advanced Vehicle Assistance for Collision Hazard, alerts train operators about potential dangers, such as signal violations or unintended movements, and can automatically apply brakes if necessary to avoid accidents. The system is part of the broader efforts by Indian Railways to enhance safety and reduce accidents on the railway network.
Earlier this month, Nomura set a target price of Rs 970 for CG Power and Industrial Solutions, projecting a 32 percent upside from Tuesday's close, with an expected earnings CAGR of 32 percent over FY24-27. The brokerage anticipates growth for the company to be driven by its strong positioning across various business segments.
In the industrial systems segment, Nomura highlighted CG Power’s potential to benefit from rising demand for energy-efficient motors, where it holds over 35 percent market share in LT motors, as well as the growing adoption of advanced drives. The brokerage also believes that CG Power is poised to capitalise on the increasing demand for power equipment in the power systems segment, spurred by the integration of renewable energy and better power evacuation from thermal plants.
Additionally, Nomura expects CG Power's Railways division to benefit from modernisation initiatives, with the potential to capture 25-30 percent of related orders.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
