Why is CG Power Share Price Rising Today? Should You Buy This Multibagger Stock Before Next Surge?

CG Power Share Price Today: CG Power share price continued its upward rally on Monday, days after surging around 7% in the last five trading sessions. The stellar rally in this BSE 200 stock has attracted significant investor interest.

CG Power shares were trading 3.87% higher at Rs 721 per share on BSE at 12:41 pm with a market capitalisation of Rs 1,13,528.91 crore. The stock had touched an intraday high mark of Rs 726.50 apiece. It has Return on Equity (RoE) of 39.88%.

Several brokerages have recently revised their target price for CG Power shares. Despite ongoing market volatility, the stock has gained nearly 10% in just one month, prompting the question: What is driving CG Power's steady rise lately?

Why Is CG Power Share Price Rising Today?

They surge in CG Power share price on Monday, September 1, is the result of sustained positive sentiment around the stock after its company announced to set up a semiconductor assembly and test unit in Gujarat.

CG Power on Thursday announced that it has launched its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.

"CG Semi becomes one of India's first full-service OSAT providers, offering solutions across both traditional and advanced packaging technologies. This marks a major step in strengthening India's semiconductor capabilities and supporting the country's goal of becoming self-reliant while also serving global markets," said the company in its BSE filing last week.

CG Power's entry into the OSAT segment will give a major impetus to India's ambition to reduce import dependence, it will also position the company as an early mover into the country's semiconductor value chain, according to Harshal Dasani, Business Head INVasset PMS.

"The G1 line, a pilot with ~0.5 million units per day, is already underway, while the larger G2 plant is slated to start commercial production by 2026. Technology partners Renesas (Japan) and Stars Microelectronics (Thailand) bring global expertise, and the project qualifies for India's semiconductor incentive programme, with the Centre covering up to 50% of costs. Brokerage Nomura has turned positive, flagging a potential 26% upside, while Chairman Vellayan Subbiah framed semiconductors as "the new steel" for India's economic security," noted Dasani.

Should You Buy CG Power?

Brokerage Emkay Global has bet on the multibagger stock and has recommended a 'Buy' rating. CG Power is one of the top picks of the week, by Emkay Global. It has fixed a target price of Rs 764.5 per share for the stock.

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