The electrical equipment market in India is a growing sector, estimated to reach $125 billion by 2027. By 2024, the market is expected to grow by over $70 billion. Havells India emerged as the leading company in the sector with net sales of approximately 185.5 billion Indian rupees as of November 2024.
Price movement
With a market capitalization of Rs 7,538.94 crore, the shares of Genus Power Infrastructures Ltd closed at Rs 248.05 per share, decreased around 5.81 percent as compared to the previous closing price of Rs 263.35 apiece.
Brokerage Target
ICICI Securities, one of the well-known brokerages in India, gave a ‘Buy’ call on the semiconductor stock with a target price of Rs 376 apiece, indicating a potential upside of 52 percent from Tuesday’s price of Rs 248 per share.
Recommendation Rational
Genus reported strong Q3FY25 results with revenue of Rs 6bn (2.3x YoY), EBITDA of Rs 1.2bn (4.1x YoY), and PAT of Rs 682 mn (5x YoY). EBITDA margins were a positive surprise at 19.3 percent, up 830bps YoY, with expectations for FY25 margins at 15–16 percent.
The company has maintained its FY25 revenue guidance of Rs 25bn and expects 30–40 percent revenue growth in FY26. With 9MFY25 revenue of Rs 15bn and an EBITDA margin of 17.4 percent, Genus anticipates strong execution in Q4FY25, maintaining EBITDA margins at 15–16 percent for FY25/FY26.
The order book (OB) is strong at Rs 313bn (+55 percent YoY), with an estimated Rs 180bn from smart meter supply and installation. Although execution has been slower than expected, it is set to accelerate in the coming quarters, with healthy tendering activity anticipated for FY26/FY27.
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Manufacturer capacity
The company has manufacturing plants across Jaipur, Haridwar, and Guwahati with a total installed capacity of over 10 million meters, and the company also has a 27 percent market Share in India’s electricity metering solutions industry.
Company profile
Genus Power Infrastructures Limited specializes in the manufacture and supply of metering and metering systems, as well as turnkey engineering, building, and contracting. The company works in two segments: metering and strategic investment.
Written by Abhishek Singh
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