CG Power: Technical Correction vs Strong Fundamentals

CG Power has reacted sharply from the 797–800 zone, confirming a reversal from the prior up-leg.
The decline into 677.80 has unfolded as a clean impulsive drop, which fits well as Wave (A) of the larger Wave Y.

With RSI oversold, the market is now in a zone where a corrective Wave (B) bounce becomes the higher-probability path. Any recovery into the 720–750 bearish order-block region will be the critical zone to watch.

As long as price remains below this region, the broader structure still points toward a Wave (C) decline — a final leg lower to complete Wave Y in the 520–540 support region.

This is a developing corrective structure, not a completed one.

Fundamentals Tell a Very Different Story

Free cash flow now at ₹5.82B, a major turnaround.

• Long-term debt almost zero at ₹2.6M.
  
• Three years of strong revenue growth.
  
• ROCE around 19%, very healthy.
  
• Margins stable and improving.
  

The only real tension point is valuation:
P/E ~98, which is stretched enough to justify a technical correction even in a fundamentally strong business.

Putting It All Together

• Wave (A) of Y is likely complete at 677.80.
  
• Wave (B) bounce expected next.
  
• Wave (C) lower remains unfinished — completing Wave Y.
  
• Fundamentals remain strong, long-term story intact.
  
• Short-term corrective move doesn’t change the broader bullish health of the company.
  

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.