CG Power & Industrial Solutions (NSE:CGPOWER) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
CG Power & Industrial Solutions Cash Conversion Cycle Related Terms
CG Power & Industrial Solutions Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CG Power & Industrial Solutions Cash Conversion Cycle Chart
NSE:CGPOWER vs VRT, BE: Cash Conversion Cycle Comparison
For the Electrical Equipment & Parts subindustry, CG Power & Industrial Solutions's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CG Power & Industrial Solutions Cash Conversion Cycle vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, CG Power & Industrial Solutions's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where CG Power & Industrial Solutions's Cash Conversion Cycle falls into.
CG Power & Industrial Solutions Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CG Power & Industrial Solutions (NSE:CGPOWER) has a Cash Conversion Cycle of 42.97 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on CG Power & Industrial Solutions and its competitors.
Is CG Power & Industrial Solutions' Cash Conversion Cycle too high?
CG Power & Industrial Solutions' current Cash Conversion Cycle is 42.97. The Industrial Products industry median Cash Conversion Cycle is 122.29. CG Power & Industrial Solutions' value of 42.97 is 64.9% below this industry median. Overall, CG Power & Industrial Solutions has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CG Power & Industrial Solutions' Cash Conversion Cycle compare to VRT and BE?
CG Power & Industrial Solutions' Cash Conversion Cycle of 42.97 can be compared against companies in the Industrial Products industry. The industry median Cash Conversion Cycle is 122.29. CG Power & Industrial Solutions' value of 42.97 is 64.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for an Industrial Products company?
The median Cash Conversion Cycle among Industrial Products companies is 122.29, based on 3,026 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CG Power & Industrial Solutions's current Cash Conversion Cycle of 42.97 is 64.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on CG Power & Industrial Solutions and its competitors. For the Industrial Products industry, the median Cash Conversion Cycle is 122.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CG Power & Industrial Solutions's current Cash Conversion Cycle is 42.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CG Power & Industrial Solutions stock overvalued right now?
Based on GuruFocus' analysis, CG Power & Industrial Solutions (NSE:CGPOWER) is currently considered Fairly Valued. The stock's GF Value™ is ₹861.16, compared to a current price of ₹892.55 — trading 3.6% above its estimated fair value. The current Cash Conversion Cycle is 42.97 and 64.9% below the Industrial Products industry median of 122.29. CG Power & Industrial Solutions' overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For CG Power & Industrial Solutions (NSE:CGPOWER), the current Cash Conversion Cycle is 42.97 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CG Power & Industrial Solutions (NSE:CGPOWER) Overvalued in 2026?
Based on GuruFocus' analysis, CG Power & Industrial Solutions stock appears to be overvalued.
The current stock price of ₹892.55 is trading 3.6% above its estimated GF Value™ of ₹861.16.
GuruFocus considers CG Power & Industrial Solutions to be Fairly Valued.
Key valuation signals for NSE:CGPOWER:
Cash Conversion Cycle: 42.97
GF Value™: ₹861.16 vs. price of ₹892.55 (3.6% above fair value)
Industry Position: 64.9% below the Industrial Products median
No single metric tells the full story. See the NSE:CGPOWER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CG Power & Industrial Solutions Business Description
CG Power & Industrial Solutions Ltd is an India-based company engaged in providing products, services, and solutions to utilities, industries, and consumers for the management and application of sustainable electrical energy. It has two reportable business segments: Industrial Systems, which derives key revenue, and Power Systems. The Power Systems segment includes products and services from ultra-high-voltage, high voltage, medium voltage and low voltage like transformer, switchgear, and turnkey projects; and the Industrial Systems segment, includes rotating machines of power and ratings, automated AC, DC, and frequency drives and control systems like electric motors, alternators, drives, traction electronics, and SCADA. Geographically, it derives key revenue from the domestic market.
87GF Score
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