The shares of the leading player in the energy metering solutions business touched a 5 percent upper circuit to the 52-week high price of Rs 285.05 apiece after the company incorporated its subsidiary for the execution of Advanced Metering Solutions.
The shares of Genus Power Infrastructure Ltd, with a market valuation of Rs 7,343 crores, touched the 5 percent upper circuit on the National Stock Exchange in the early session on Monday.
According to the company’s exchange filings, On August 31, 2023, the Company incorporated a step-down subsidiary, Maharashtra Akola Amravati Smart Metering Private Limited. With a 70 percent controlling stake. It is formed as an SPV(special-purpose vehicle) to carry out the Advanced Metering Infrastructure Service Provider (AMISP) Contract.
The company’s revenue has increased by 40 percent year on year, from Rs 187 crore in Q1FY23 to Rs 261 crore in Q1FY24. During the same period, Net profit has significantly increased by 91 percent from Rs 12 crore to Rs 23 crore.
The company’s shares have delivered returns of 204 percent in six months and 214 percent over a year. A Rs 1 lakh investment in the company would be worth Rs. 3.14 lakh after a year and Rs. 3.04 lakh after a half-year.
For the latest financial year, the company reported a return on equity at 2.95 percent and a return on capital employed at 6.78 percent, with a net profit margin of 3.66 percent, and an operating profit margin of 9.10 percent.
According to the latest data shareholding pattern, promoters own 50.42 percent of the firm, while foreign institutional investors own 2.67 percent and domestic institutional investors own a 5.34 percent stake.
Genus Power Infrastructures Ltd offers a variety of smart metering solutions to engineering and construction firms. The firm primarily serves state power boards and private utilities.
Written by Omkar Chitnis
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