Genus Power Infrastructures Ltd. share price target

We maintain our BUY recommendation on the stock.

India's power distribution space is experiencing a significant transformation, driven by the advancement of smart grid technology. Smart meters continue to see gradual implementation, albeit at a slow pace.

We maintain our BUY recommendation on the stock.

Genus Power (Genus) has reported strong Q3FY25 earnings with standalone revenue of INR 6bn (2.3x YoY), EBITDA of INR 1.2bn (4.1x YoY) and PAT of INR 682mn (5x YoY).

We recommend a BUY rating on the stock with a target price of Rs 408/share, implying an upside of 10% from the CMP

We maintain our BUY recommendation on the stock.

We initiate coverage of Genus Power Infrastructures Ltd. (GPIL) with a BUY recommendation and a target price of Rs 505/share, implying a potential upside of 20% from the CMP

We initiate coverage on Genus Power Infrastructures (GPIL) with BUY and SOTP-based TP of Rs500/sh (upside: ~38%). With >25% market share in meters pan-India.

Genus Power (Genus) reported a healthy set of Q1FY25 numbers with its revenue growing to INR 4.1bn, up 60% YoY. Gross margins improved markedly to 44.4% (vs. 34.6% YoY) owing to stable raw material pricing.

Genus Power Infrastructures (Genus) has reported a sharp uptick in order inflow in smart meters over the last six quarters and it’s not yet over. Ordering activity is likely to remain strong over the next few years. Armed with capital commitment from GIC, it remains in a pole position to win further set of orders.

Genus Power Infrastructure (Genus) has entered into the big league by: a) striking a marquee deal with GIC for an equity infusion of Rs5.2bn for 15% stake, and b) setting up a platform – an SPV (26% Genus and 74% GIC). This will enable Genus to participate in smart meter bids – an opportunity size of Rs300bn.

Genus Power Infrastructures’ (GPIL) Q3FY23 revenue was Rs2bn (+2.3% YoY, -8.3% QoQ) while EBITDA was Rs205mn (-2% YoY, +21.7% QoQ). EBITDA margin improved to 10.2% (from 7.7% in Q2FY23) on the back of commodity price moderation leading to improved gross margin. PAT at Rs116mn was up 41.6% YoY and 14% QoQ, supported by higher other income at Rs82mn (+98% YoY, +7.2% QoQ).

Genus Power Infrastructures’ (GPIL) performance improved in Q2FY23 due to better order execution. Revenue for the quarter was at Rs2.2bn (up 17% QoQ, 23% YoY) and
EBITDA Rs169mn (up 17.8% QoQ, 16.1% YoY).

Genus Power Infrastructures (GPIL) is a leading smart meter solutions provider in India, with a total manufacturing capacity of 10mn meters p.a. It is the largest listed smart electricity meter company in India and provides end-to-end services including set-up of Advanced Metering Infrastructure (AMI) and Facility Management Systems (FMS) post implementation. With >25% Pan-India market share in meters, GPIL is set to become one of the largest beneficiaries of upcoming smart meter installation drive under the Rs3trn revamped distribution sector scheme (of which 50% is for smart
meters).

The Genus power stock has corrected sharply by 64% from its high of Rs86. The stock is trading at 11.6x and 10.4x FY19E and FY20E earnings respectively. We value the stock at 15x FY20E and arrive at a price target of Rs 40 (Unchanged)....

The company had an order book of Rs 9.7 bn at end of Q1FY19, which would have increased substantially on account of two major order wins, 1) Supply of 5 mn single phase Prepaid meters, valued at Rs 6.5 bn and 2) Supply of Advanced Metering Infrastructure (AMI) including 4.31 Iakhs smart meters. The value of the order is pegged at Rs. 3.1 bn (net of tax). However, pricing pressure likely to continue as the government aims to...

We recently met the management of Genus Power (GPIL). The management was very positive on the demand outlook for meters. Our interaction with other industry players also corroborates this view. After the order win of smart meters in Q3FY18, news-reports indicate that GPIL is the lowest bidder in prepaid meter tender. Based on robust demand outlook, we project strong revenue and earnings growth. We reiterate BUY...

In 3QFY17, net sales were at `1,862.6mn up 41.2% q/q. This was mainly due to increase in meter sales. While, y/y there was a decline of 9.8% due to change in business model. EBITDA margin contracted by 330 bps q/q to 12.3% due to increased other expenses during the quarter. The other expenses increased mainly due to higher contribution from ECC segment (capital intensive) during this quarter The other expenses and staff cost y/y increased by 42.2% and 11.1% respectively, where raw material expenditure y/y decreased by 16.5%. Depreciation stood at `39.7mn (+12.2% y/y; +3.1% q/q). Interest expense stood at `57.5 mn (-10.3% q/q;...

Net sales stood at 1,319mn decreased by 29.6% % q/q mainly due to decrease in meter sales .while y/y it decline by ~35.4% due to change in business model. EBITDA margin decreased by 110 bps q/q to 15.6% % due to with change in product mix during the quarter i.e. low margin meter business contribution remained higher. The raw material cost and staff cost q/q decreased ased by 32% and 6.8% respectively....

Genus power has reported 1QFY17 results. PAT was in-line line with our expectation - mainly due to change in product mix (meter contribution remained higher) coupled with lower other...