Buy Genus Power Infrastructures; target price Rs 380: Axis Securities

Axis Securities has a buy call on Genus Power Infrastructures with a revised target price of Rs 380 (Rs 505 earlier) The current market price of Genus Power Infrastructures is Rs 249.85.
Genus Power Infrastructures, incorporated in 1992, is a Small Cap company with a market cap of Rs 7658.70 crore, operating in Electric/Electronics sector.

Genus Power Infrastructures' key products/revenue segments include Electronic Energy Meters, Other Services, Other Operating Revenue, Export Incentives, Income From Contracts and Scrap for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 617.06 crore, up 12.22% from last quarter Total Income of Rs 549.86 crore and up 139.96% from last year same quarter Total Income of Rs 257.15 crore. The company has reported net profit after tax of Rs 47.92 crore in the latest quarter.

The company's top management includes Mr.Ishwar Chand Agarwal, Mr.Chirag Mansukh Patel, Mr.Gyan Prakash, Mr.Subhash Chandra Garg, Ms.Sharmila Chavaly, Dr.Keith Mario Torpy, Mr.Jitendra Kumar Agarwal, Mr.Rajendra Kumar Agarwal, Mr.Kailash Chandra Agarwal, Ms.Shweta Gupta. Company has S R Batliboi & Associates LLP as its auditors. As on 31-12-2024, the company has a total of 30 Crore shares outstanding.

Investment Rationale
Revenue guidance of Rs 2,500 crore for FY25 and 50% YoY topline growth for FY26 remain unchanged. The EBITDA margin guidance of 15-16% is maintained for FY25, and it will be sustained for FY26. Capacity expansion from 1.1 crore to 1.5 crore meters annually is completed as the commercial production of the Assam Plant commenced on 13th Dec-24. The company has the capabilities to ramp up to full capacity based on the requirement and is on track to achieve its target of production of 1 Mn meters per month.
Current valuation of the stock is 22x on Axis Secutities' FY27 EPS estimate (From 25x). The current target price is Rs 380/share (From Rs 505/share.)Axis Securities maintains BUY recommendation on the stock.

Promoter/FII Holdings
Promoters held 39.39 per cent stake in the company as of 31-Dec-2024, while FIIs owned 22.79 per cent, DIIs 3.3 per cent.