Genus Power up 5% for 2nd day; Emkay initiates 'buy', sees 25% upside

Genus Power is set to become one of the largest beneficiaries of the upcoming smart meter installation drive under the Rs 3-trillion revamped distribution sector scheme, say analysts

Genus Power Infrastructures shares were locked in the upper circuit for a second straight day, up 5 per cent at Rs 399.75 on the BSE in Wednesday's intraday trade, after Emkay Global Financial Services initiated coverage on the stock with a 'buy' rating and a target price of Rs 500 per share. Emkay Global's share price target implied an upside of 25 per cent in Genus Power stock.

Till 10:19 AM,  a combined 1.31 million equity shares had changed hands and there are pending buy orders for 261,000 shares on the NSE and BSE. In two days, the stock has rallied 10 per cent. It had hit a record high of Rs 476 on August 30, 2024.

 

Genus Power is engaged in the business of manufacturing and providing Metering and Metering solutions and undertaking engineering, Construction and Contracts on turnkey basis (core business division). The company is poised for continued growth, offering comprehensive advanced metering solutions that integrate seamlessly with Advanced Metering Infrastructure (AMI) systems.

Starting from July 2023, Genus Power has consistently achieved remarkable success by receiving highly esteemed orders for the installation of around 20 million Smart Meters in India. The company's total order book including all SPVs and GIC Platform now stands at about Rs 32,500 crore (net of taxes), giving a clear glance of the roadmap for the next 8 to 10 years and showing a positive outlook for future revenue growth, Genus Power said in its FY24 annual report.

Meanwhile, with less than 25 per cent market share in meters pan-India, Genus Power is set to become one of the largest beneficiaries of the upcoming smart meter installation drive under the Rs 3 trillion revamped distribution sector scheme, replacing conventional meters and structurally transforming financial dynamics of the power sector, analysts at Emkay Global Financial Services said.

Genus Power is the largest listed smart electricity meter company in India, and provides end-to-end services, including setting-up of Advanced Metering Infrastructure (AMI) and Facility Management Systems (FMS), after implementation. The recent deal with GIC (Singapore) is transformative for Genus Power (26 per cent), granting a steady-supply business and major reduction in working capital. With only 13.7 million smart meters installed as of September 2024, the brokerage firm believes the opportunity is sizable, though pace of execution is key.