Shares of CG Power and Industrial Solutions hit a new high of Rs 319.10 on Tuesday’s BSE in intraday trade on heavy volume in an otherwise subdued market. Shares of Murugappa Group of companies surpassed the previous high of Rs 315.50 hit on January 16, 2023.

The stock has risen 18% over the past month, with a gain of less than 1% for the S&P BSE Sensex. The average trading volume on the BSE counter jumped more than 15 times today. As of 12:10 pm, a total of 4.75 million shares changed hands on the NSE and BSE, representing 0.31% of the company’s total share capital.

CG Power is in the business of power conversion equipment, including a wide range of medium and low-voltage rotating electrical machines (motors, generators, alternators) for all industrial applications, drives and stampings for all industrial applications. For over three decades, the company has been a renowned supplier of equipment and solutions for the rolling stock, railway electrification, coach and signalling sectors of Indian Railways.

All of the company’s businesses performed well in the October-December quarter (Q3FY23), with profit before tax (PBT) up 70% year-on-year. Sales (Rs 1,645 crore) and profit before tax (Rs 274 crore) recorded in the quarter were the highest in recent memory.

EBITDA rose 50% year-on-year to Rs 295 crore. EBITDA margin improved by 440 basis points to 18%. The company said higher margins were due to better price realisation, higher volumes, favourable product mix, lower input costs and procurement efficiencies.

Meanwhile, the board approved a proposal to invest Rs 126 crore in expanding transformer manufacturing capacity at Bhopal and Malampur plants.

According to CG Power, there are multiple opportunities for growth across all of the company’s businesses. The Industrial industry is expected to post continued organic growth, given the heavy investment in infrastructure and the start of the capital expenditure cycle. Additionally, the electric vehicle (EV) segment is another significant opportunity to cater to in the coming years, the company said in its FY22 annual report.

Regarding the railway business, the Ministry of Railways has announced a road map for the next ten years with massive investment. It added that the introduction of Vande Bharat trains, the establishment of dedicated freight corridors, and measures to improve passenger safety are among new business opportunities for the company.