CG Power & other semiconductor stocks with Capex plans of up to ₹67,000 Cr to keep an eye on

India’s semiconductor market is projected to reach $52 billion by 2024-25 and is expected to grow at a CAGR of 13 percent until 2030, reaching $103.4 billion. The sector is valued at $23.2 billion and is expected to grow at a CAGR of 17.1 percent to reach $80.3 billion by 2028.

Following are a few semiconductor stocks with robust plans of up to Rs. 67,000 crores:

1. CG Power & Industrial Solutions Limited

With a market cap of Rs. 91,426.4 crores, the stock surged nearly 1.5 percent to Rs. 611.5 on Tuesday. The stock has delivered positive returns of around 40 percent in one year and nearly 0.4 percent returns in one month. 

In terms of key developments, the company has received approval for a greenfield expansion to increase its power transformer capacity by an additional 45,000 MVA, with an investment of Rs. 712 crores, and aims for completion by FY27-FY28. 

Additionally, G.G. Tronics has secured a significant order for the Locomotive TCAS (Kavach) system, valued between Rs. 500-600 crores, which will be executed over the next year and include 11 years of maintenance. 

CG Power has a committed capex of Rs. 688 crores for business segments to optimize capacity and horizontal deployment of best practices. 

CG Power, in partnership with Renesas Electronics Corporation (Japan) and Stars Microelectronics (Thailand), will establish an Outsourced Semiconductor Assembly and Testing (OSAT) facility in Sanand, Gujarat, with an investment of Rs. 7,600 crore. 

CG Power and Industrial Solutions Limited is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services and solutions in two main business segments, viz. Power Systems and Industrial Systems.

2. Kaynes Technology India Limited

With a market cap of Rs. 27,299.3 crores, the stock surged nearly 2.6 percent to Rs. 4,465 on Tuesday. The stock has delivered positive returns of around 48 percent in one year, but nearly 19 percent of negative returns in one month.

The management is confident in maintaining EBITDA margins above 15 percent for FY25, with an anticipated increase in operating leverage as new teams contribute to revenue growth. 

For FY26, revenue is projected to reach Rs. 4,500 crores, with operating margins expected to exceed 15 percent. 

A capital expenditure of Rs. 4,800 crores is anticipated over the next few years for new projects, with substantial government subsidies expected to help offset cash outflows. 

The company will focus on expanding its geographical footprint and enhancing its ODM capabilities through targeted acquisitions and investments. 

Kaynes’ order book increased significantly from Rs. 5,422.8 crores in Q2 FY25 to Rs. 6,047.1 crores in Q3 FY25. 

The Union Cabinet approved the proposal of Kaynes Semicon Private Limited, the company’s wholly-owned subsidiary, to set up a semiconductor manufacturing unit in Sanand, Gujarat, with an estimated investment of Rs. 3,307 crore on September 2, 2024. 

Additionally, Kaynes Technology India Limited is investing Rs. 2,800 crore to set up a semiconductor OSAT and compound semiconductor facility at Kongara Kalan, near Hyderabad. 

The company has also received government approval for its HDI PC and PCB projects in Chennai, with updates expected to be shared soon. Both projects are expected to generate substantial revenue starting from the fourth quarter of FY26. 

Kaynes Technology India Limited is primarily engaged in the design and manufacturing of advanced electronic modules and solutions catering to a wide range of industries. It is well-positioned to benefit from growth in ESDM, semiconductor, and PCB markets.

Also read: Pharma stock jumps 5% after announcing and setting record date for dividend

3. Adani Enterprises Limited

With a market cap of Rs. 2.45 lakh crores, the stock surged nearly 2 percent to Rs. 2,157.95 on Tuesday. The stock has delivered negative returns of around 36 percent in one year, as well as nearly 6 percent returns in one month.

Adani Enterprises has revised its capex plans for the fiscal year 2024-25. Initially, the company projected a capex of Rs. 92,000 crore, which was later adjusted to Rs. 80,000 crore in May 2024. As of November 2024, this estimate was further reduced to Rs. 67,000 crore, primarily due to an extended monsoon season that disrupted project timelines. 

Previously, the Maharashtra cabinet panel approved a $10 billion (Rs. 83,947 crores) investment proposal by a joint venture between Israel’s Tower Semiconductor and Adani Group to set up a semiconductor chip manufacturing unit at Taloja, Panvel. 

Located in the Raigad district’s Navi Mumbai suburbs, the proposed plant will initially have a capacity of 40,000 wafer starts per month (WSPM) in its first phase, with plans to expand to 80,000 WSPM. The project is expected to generate 5,000 jobs. 

Written by Shivani Singh

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