Murugappa Group Stock: Mumbai, September 1, 2025 — Murugappa Group’s flagship chemical arm has delivered a staggering 2,700% return over the past five years, propelled by its strong footing in specialty chemicals, carbon materials, and lithium-ion battery components, both domestically and internationally. Global brokerage Morgan Stanley remains bullish on further upside. However, it also highlighted key risks related to its associate CG Power, including heightened competition in transformers, weak demand and pricing pressures in motors, sluggish railway contracts, and execution challenges in the OSAT (Outsourced Semiconductor Assembly and Testing) business.
Morgan Stanley’s Growth Outlook
- Bullish long-term view: Morgan Stanley sees structural tailwinds benefiting Murugappa’s specialty chemical business, driven by global demand for clean energy components and industrial materials.
- Strong past performance: The stock’s 2,700% rise over five years reflects effective execution, sector leadership, and rising investor confidence.
While the brokerage hasn’t quantified future upside, sustained momentum in EV components and global diversification suggest significant potential remains.
Risks at CG Power: Jakitude Meets Prudence
Morgan Stanley issued a cautionary note regarding CG Power’s outlook, citing several near-term challenges:
| Risk Factor | Explanation |
|---|---|
| Transformer Market Competition | Rising rivalry may erode pricing power in a core business segment. |
| Weak Motor Demand & Prices | Flattening or declining volumes and margins threaten profitability. |
| Railways Execution Sluggishness | Delays or missed targets could hurt future revenue visibility. |
| OSAT Business Underperformance | Delays in execution or poor margin expansion may stunt growth potential. |
These risks underscore that while specialty chemicals remain promising, related businesses within the group may weigh on overall stock performance if unaddressed.
Key Takeaways
- Compelling Opportunity: Murugappa’s strong year-to-date performance and global diversification make it a standout specialty chemicals play—especially in lithium-ion battery material markets.
- Risk Awareness: CG Power’s operational hurdles in key segments are important watch points for investors evaluating group performance.
- Strategic Focus Needed: Warding off competition, boosting operational efficiency, and improving overall execution across verticals could unlock further shareholder value.