CG Power Share Price Jumps 4.61% to Rs. 694.60 After Semiconductor Facility Launch

Overview

• CG Power shares trade at ₹694.60, up 4.61%, with market cap reaching ₹1.09 lakh crore.

• The company unveiled its first OSAT semiconductor facility (G1) in Sanand, Gujarat.

• Expansion with G2 facility by 2026 will boost production to 14.5 million units per day.

CG Power and Industrial Solutions has been in the spotlight after unveiling one of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) facilities in Sanand, Gujarat. It is a major milestone for India’s broader ambitions in semiconductor manufacturing.

According to Moneycontrol live market data, CG Power share price today gained 4.61% to ₹694.60 on the OSAT facility news. The stock opened at ₹676.95 and moved within a range of ₹668.25 to ₹698.30 during the session. Trading volume stood at 9.6 million shares with a total traded value of around ₹6,665 crore. CG Power shares’ market capitalization now stands at approximately ₹1.09 lakh crore.

Stock Performance and Valuation

CG Power share price has seen considerable action in recent months. The stock’s 52-week high is ₹874.70, while its 52-week low is ₹517.70, indicating significant volatility over the past year. At current levels, the stock trades with a price-to-earnings (P/E) ratio of 108.92, based on trailing twelve months earnings per share (EPS) of ₹6.37. EPS has declined 33.54% year-on-year, highlighting short-term profitability pressures.

CG Power share price chart on TradingView shows gains of 4.98%: 

The company’s price-to-book (P/B) ratio stands at 30.99, while its book value per share is ₹22.39. Dividend yield for CG Power shares is a modest 0.19%. Compared to the sector P/E of 82.68, the stock trades at a premium, reflecting market optimism about its growth potential.

The stock’s 20-day average volume is 2.58 million shares with an average delivery percentage of 56.58%, suggesting healthy investor participation. Its beta of 1.37 indicates higher volatility compared to the broader market.

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CG Power OSAT Facility

The biggest driver of market enthusiasm has been CG Power’s announcement of its large-scale investment in semiconductor manufacturing. The company, through its subsidiary CG Semi, plans to invest over ₹7,600 crore (approximately $ 870 million) over the next five years to establish two OSAT facilities in Gujarat.

The G1 facility, which was inaugurated recently, is designed with a peak capacity of around 500,000 units per day. It will handle all stages of semiconductor assembly, packaging, testing, and post-test services.

CG Power OSAT facility is equipped with high-yield manufacturing systems, a modern Manufacturing Execution System (MES) for automation and traceability, and in-house reliability testing labs. It is currently working toward ISO 9001 and IATF 16949 certifications. Commercial production is expected to begin in 2026 once customer qualifications are completed.

Meanwhile, the G2 facility, located a few kilometers away, is under construction and is scheduled for completion by the end of 2026. Once operational, it will dramatically boost output to 14.5 million units per day. Together, G1 and G2 are expected to create more than 5,000 direct and indirect jobs, making a contribution to India’s manufacturing ecosystem.

Market Outlook

Industry experts view CG Power’s entry into semiconductor manufacturing as a landmark event for India. The country has long relied on imports for its chip needs, and this investment is viewed as a step toward achieving technological self-reliance. The majority of analysts on Moneycontrol rated CG Power shares a ‘Buy’ owing to its huge upside potential. 

CG Power aims to place India firmly on the semiconductor map, supported by both central and state governments, as well as collaborations with global players. For investors, the stock’s near-term valuation may appear expensive, but the long-term growth story remains compelling.

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FAQs

1. What is the future of CG Power share?

CG Power’s future looks strong as it expands into semiconductor manufacturing with OSAT facilities. While valuations remain high, long-term growth prospects in India’s chip ecosystem make it a promising stock for patient investors.

2. Can I invest in CG Power stock?

Yes, investors can invest in CG Power through NSE or BSE. The stock is trading at premium valuations, but its semiconductor expansion provides strong growth potential. Investment decisions should consider risk appetite and long-term goals.

3. Is CG Power a Tata company?

No, CG Power is not a Tata company. It is part of the Murugappa Group, a major Indian business conglomerate. The company focuses on power systems, industrial solutions, and semiconductor manufacturing initiatives.

4. What is the price target for CG Power in 2025?

While analyst estimates vary, CG Power’s growth in semiconductors could drive the share higher in 2025. Market targets depend on project execution, demand, and earnings growth. Investors should track quarterly results and industry developments closely.

5. Why did CG Power share price rise recently?

CG Power shares surged after the company unveiled its advanced semiconductor OSAT facility in Gujarat. The move strengthens India’s chip ecosystem, boosts investor confidence, and positions CG Power as a key player in the electronics supply chain.