CG Power share price gained in intraday deals on Wednesday, September 3, extending its winning run to the fourth straight session today.
During this period, the multibagger stock has risen nearly 14%.
CG Power share price hit a high of ₹757.20 in trade today on the BSE, up 2.41%, despite a muted sentiment in the Indian stock market. Over the longer time frame, the Murugappa Group stock has emerged as a multibagger, delivering returns of as much as 3029% in five years.
What’s behind rally in CG Power shares?
The rally in CG Power shares, which started on August 29, came on the back of two reasons – the launch of the company’s OSAT facility and positive brokerage views.
CG Power announced the launch of its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, by its subsidiary CG Semi.
CG Power, in an exchange filing, post-market hours on August 28, said, “With this launch, 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.”
The company further added that this project, backed by the central and state governments, and in collaboration with Renesas and Stars Microelectronics, would involve CG Semi investing over ₹7,600 crore (~$870 million) over five years to develop two state-of-the-art facilities (G1 and G2) in Sanand, Gujarat.
Harshal Dasani, Business Head at INVAsset PMS, said that globally, the semiconductor market is in a sharp upswing, with industry revenues at ~$728 billion, a 13.7% jump on the back of AI-driven demand.
“India, though still nascent, is scaling rapidly: domestic chip demand stood near $54 billion in 2025 and is projected to cross $100 billion by 2030, implying a ~15% CAGR. CG Power’s pivot into OSAT strengthens India’s ambition to reduce import dependence and positions the company as an early mover in the country’s semiconductor value chain,” Dasani said.
Additionally, brokerages have also turned positive on CG Power stock.
According to media reports, global brokerage Morgan Stanley initiated coverage on CG Power and Industrial Solutions on Monday with an ‘Overweight’ rating and a price target of ₹799.
Meanwhile, brokerage Nomura has also remained positive on the multibagger stock. It maintained a ‘Buy’ on CG Power shares, with a target of ₹840 per share.
CG Power share price: Technical outlook
On technical charts, CG Power has broken out of a bullish flag pattern with strong volumes around the 700 zone, confirming institutional participation, said Anshul Jain, Head of Research at Lakshmishree.
“The breakout marks the end of a healthy consolidation phase and opens the path for an immediate move toward 800-odd levels. Both weekly and daily trend indicators are aligned in favour of the bulls, adding conviction to the breakout,” Jain opined.
He added that the presence of strong volume support on the breakout further strengthens the probability of a sustained upmove.
“As long as the stock holds above the breakout zone, momentum traders can stay positive for further upside in CG Power stock,” he said.