Price below Rs 600, 650% return in 3 years, this stock made one rich

New Delhi. Shares in Murugapa Group company CG Power and Industrial Solutions, also known as Crompton Graves Ltd, have made investors rich. In the last three years, CG Power shares have given investors a return of 650%. Analysts are likely to see more volatility in the stock after the company announced a joint venture with Ransas and Starz Microelectronics for semiconductor assembly and test in Anand, Gujarat. At 2:00 pm on NSE today, shares of CG Power were trading at Rs 548.95 (CG Power & Industrial Solutions Share Price), up 0.14 per cent. The company will announce results for the fourth quarter of fiscal 2024 today.

Renesas Electronics Corporation is a leading Japanese semiconductor company. Also, Stars Microelectronics is a leading OSAT company in Thailand. The joint venture (JV) will be 92.3 percent owned by CG Power and Renesas and Stars Microelectronics will each hold approximately 6.8 percent and 0.9 percent equity capital. The facility at Sanand will have a capacity of 15 million units per day. Its total cost will be Rs 7,600 crore.

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It proved to be a touchstone for investors.
Shares of CG Power and Industrial Solutions have been touchstones for investors. This stock has given investors a return of 650% in three years. This means that the investment made in this stock has increased seven times during this period. Similarly, the share price has increased by 75% in one year. The stock has gained nearly 46 percent in six months and has given investors a 22 percent return so far in 2024. The stock has a 52-week high of Rs.565.50 and a 52-week low of Rs.290.

Looking forward to further development
Government of India is trying to promote semiconductor manufacturing in the country. The Indian government is working on a major new economic package in addition to the Rs 76,000 crore stimulus already allocated for the semiconductor sector. The Rs 76,000 crore stimulus package launched in December 2021 aims to provide economic support to companies engaged in semiconductor manufacturing and investment. Market experts say that CG Power will benefit if the government provides more economic package for the semiconductor sector. Therefore, this stock is expected to increase in the future.

(Disclaimer: The information given here is based on share performance. As investing in stock market is subject to market risk, please consult a certified investment advisor before investing. News 18 Hindi becomes liable for any damages you incur.)

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