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ICICI Securities Report
Genus Power Infrastructures Ltd. is a pure play on smart meter opportunity. It is front runner in order worth Rs 110 billion. As a result, its order book including L1 has improved to Rs 320 billion or 25 times book to bill ratio from Rs 210 billion at end of Q3.
Note that India is still to finalise another ~Rs 1 trillion opportunity – bodes well for order inflow in FY25E. It reported revenues of Rs 4.2 billion, +2 times with Ebitda of Rs 550 million (+ 2 times YoY) and profit after tax of Rs 330 million (+2 times yoy) in 4Q FY24. For FY25, it has guided for revenue of Rs 25 billion with Ebitda margin of 15-16.
As execution picks up, Genus will have to infuse equity in the platform with GIC; it anticipates equity requirement of Rs 3-4 billion in FY25.
Maintain 'Buy' with a revised target price of Rs 350 (prior Rs 325), valuing the stock at 30 times FY26E earning per share of Rs 11.5/share.
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