CG Power Shares Hit Seven-Month High, Extend Gains To Second Session: What's Behind The Rally?

CG Power And Industrial Solutions Ltd. share price extended gains to a second session after its unit launched first outsourced semiconductor assembly and testing facility. CG Semi Pvt. Ltd. launched the facility on Thursday and since then the parent stock has gained 4.56% in two sessions to Monday. The facility is set up in Sanand, Gujarat.

After the launch CG Semi has become one of India's full-service OSAT providers. It will offer solutions across both traditional and advanced packaging technologies. The facility has support from both the central and state governments CG Semi has also collaborated with Renesas and Stars Microelectronics. It is also investing Rs 7,600 crore over five years to develop two state-of-art facilities in Sanand, Gujarat.

CG Power And Industrial Solutions share price rose as much as 3.69% to Rs 711.90 apiece, the highest level since Jan 8. It was trading 2.97% higher at Rs 714.95 apiece as of 9:44 a.m., compared to 0.44% advance in the NSE Nifty 50 index.

The stock advanced 5.64% in 12 months, while it declined 0.9% on year-to-date basis. Total traded volume so far in the day stood at 7.6 times its 30-day average. The relative strength index was at 69.16.

Out of 13 analysts tracking the company, 10 maintain a 'buy' rating, and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.1%