Motilal Oswal Wealth Management has identified CG Power and Industrial Solutions and Adani Power as top weekly picks for the week of September 7, 2026. The brokerage highlights CG Power’s capacity expansion and semiconductor entry, alongside Adani Power’s aggressive thermal power scaling and stable contract base.
Motilal Oswal Wealth Management has spotlighted CG Power and Industrial Solutions and Adani Power as its top picks for the week starting September 7, 2026. The brokerage firm outlined its positive outlook for both companies based on their respective expansion strategies and sector positions, setting price targets of Rs 1,020 for CG Power and Rs 250 for Adani Power.
CG Power Scaling Capacity and Semiconductor Ventures
For CG Power and Industrial Solutions, the brokerage pointed to the successful commissioning of a new greenfield transformer plant in Sehore, Madhya Pradesh. This facility adds 45,000 MVA to the company’s manufacturing capacity, bringing its total to 120,000 MVA. The report suggests this capacity increase is timed well to meet the rising demand for power systems in India.
Beyond its core business, CG Power’s venture into the semiconductor space remains a key area of interest. The company’s semiconductor unit, CG Semi, has already commenced commercial production at its G1 site. Investors are looking forward to the G2 production milestones expected by the end of 2026. While these developments are promising, the company’s financial success will rely on its ability to scale semiconductor operations and maintain profitability amid industry competition.
Adani Power’s Thermal Capacity Expansion
Adani Power has been selected for its aggressive plans to grow its thermal power footprint. The company, which currently operates roughly 18 GW of capacity, is working toward a target of 42 GW by fiscal year 2032. This expansion is supported by a large capital expenditure plan and secured land availability for its new projects.
A major stability factor cited in the report is that approximately 95% of Adani Power’s current operational capacity is backed by long-term power purchase agreements (PPAs). These contracts provide consistent earnings visibility, reducing the company's reliance on the more volatile merchant power market. The company’s history of taking over and turning around distressed power assets also plays a role in the firm's operational efficiency.
Risks and Monitoring
While the outlook for both companies appears positive in the brokerage’s view, there are factors investors should monitor. For both firms, the primary challenge remains the execution of large-scale infrastructure projects, where delays or cost increases could affect bottom-line results. Adani Power faces the risk of market volatility affecting its unregulated power sales, while the thermal power sector as a whole is subject to regulatory changes and shifting energy policies.
For CG Power, the semiconductor venture represents a new area of business with inherent risks, including the challenge of ramping up production to achieve a breakeven point by fiscal year 2028. Investors may want to track project commissioning timelines, order book execution, and any shifts in sector-wide demand in the coming quarters.