Murugappa Group Stock CG Power Sees Breakout – Jumps 90% in 2024

Introduction to CG Power and Industrial Solutions

CG Power and Industrial Solutions Limited, part of the Murugappa Group, is a major player in the Electrical Engineering industry, providing a comprehensive range of products, solutions, and services for power and industrial equipment. With a presence across various industries in India and globally, the company operates 16 manufacturing facilities in India and manages two subsidiaries. The company’s business is divided into two primary divisions:

1. Industrial Division: Focuses on motors, drives, and railway applications.
2. Power Systems Division: Specializes in transformers, switchgears, and other power-related products.

Technical Breakout: A New High for CG Power

From a technical standpoint, CG Power’s stock has recently broken out of a significant 13-week consolidation phase. This breakout, marked by strong volume, indicates renewed investor interest and bullish momentum. The stock’s relative strength line has reached a new high, showcasing its clear outperformance compared to the broader market.

Currently, CG Power is trading 5% above its 10-week moving average and 28% above its 400-week moving average, reflecting its strong upward trajectory. The weekly MACD (Moving Average Convergence Divergence) is on the verge of giving a bullish signal, reinforcing the stock’s positive momentum, while the weekly RSI (Relative Strength Index) is back in the bullish zone. Other technical indicators, including the Elder Impulse System and the Stochastic RSI, suggest a strong bullish sentiment.

This technical momentum has translated into impressive gains, with CG Power registering double-digit growth in October alone. Year-to-date, the stock has surged by an impressive 90%, cementing its position as one of the top performers in its sector.

Strategic Expansion Through RF Components Acquisition

In addition to its technical performance, CG Power has been making strategic moves on the business front. The company recently announced its acquisition of the Radio Frequency (RF) Components business from Renesas Electronics America Inc. and other related entities. This acquisition includes intellectual property, equipment, contracts, and select employees, positioning CG Power for further expansion into the RF components space. The acquired business had an annual revenue of around USD 56 million in 2023, adding a new revenue stream for the company.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.