A smart meter is a modern device that helps provide detailed information on electricity consumption to reduce electricity bills. Smart meters differ from traditional meters because they can communicate remotely with the electric company and eliminate the need for a meter reader.
This helps the electric company track people’s energy usage more accurately and can help the public save money by showing when they use the most electricity. Smart meters also let the electric company manage power better, like fixing problems faster whenever there is an outage.
The government aims to install 222 million smart meters by April 2024 under the National Smart Grid Mission. As of now, 10.8 million meters have been installed. The State of Telangana stands out for achieving complete installation.
Growth guidance from a company’s management is like an anticipation of how much the company forecasts it will grow. The company forecasts how much money it expects to make, how many customers it plans to acquire, how much capital expenditure it will incur in the future etc. Investors and experts use this information to understand what the company’s plans are for the future.
Listed below are a few Smart metering stocks along with their growth guidance provided by the company’s management:
Genus Power Infrastructure Limited
About the company:
Genus Power Infrastructure Limited, part of the Kailash Group since 1992, specializes in Metering and Metering Solutions and provides ‘Engineering, Construction, and Contracts’ on a turnkey basis.
Revenue and EBITDA Guidance:
For Fiscal Year 2025, the company targets revenue of Rs 2,500 crores. They also expect an EBITDA of 15 to 16 percent. The revenue guidance is driven by their strong order book valued at over Rs 21,000 crores, including SPV and GIC platforms.
Operating Profit Margin Plans:
Genus plans to enhance operating profit margins by improving efficiency and managing costs effectively as they scale up and benefit from economies of scale.
Recent order:
As of November 2023, Genus Power Infrastructure has secured an order worth Rs 2,259.94 crore for a smart meter project. The order includes the installation of 27.33 lakh smart prepaid meters.
Share price movement:
The shares of this company closed at Rs 358.40 per share down by 3.07 percent on Tuesday’s market hours. The market capitalization of Genus Power stood at Rs 10,886 crores.
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About the company:
Incorporated in 1994, RMC Switchgears Ltd is in the business of smart meter electrics, Switchgear Engineering, and ECI contracts for the power distribution and transmission sector.
Recent order:
Recently the company has been awarded an order worth Rs 56.68 crores from AMISP ( advanced metering infrastructure service provider) such as PVVNL (Pashchimanchal Vidyut Vitran Nigam Limited) and MVVNL (Madhyanchal Vidyut Vitran Nigam Limited) to supply SMC Meter Enclosures for Smart Meters
Capex Guidance for smart meters:
RMC Switch Gears is expanding its manufacturing capacity of smart metering enclosures by an estimated 300,000 units annually. The capex estimated is Rs 7 to 10 crores to fund this plan.
Strategic Guidance:
RMC is actively engaged in discussions with industry players like Genus, Adani, Monte Carlo, NCC, and Polaris to secure further contracts for supplying enclosures for Distribution Transformer Centre (DTC) meters.
Share price movement:
The shares of this company closed at Rs 676.90 per share up by 5 percent on Tuesday’s market hours. The market capitalization of RMC Switch Gears Limited stood at Rs 697.77 crores.
About the company:
HPL Electric & Power Limited, a leading electrical equipment manufacturer in India for over 40 years, operates across five key product verticals.
Smart Meter Capacity Guidance:
HPL aims to reach a smart meter capacity of 1.5 crores units in the next 1-2 years, with gradual increases planned.
Revenue and Margin Guidance:
The company targets revenue to increase from Rs 1,460 crores to around Rs 1,800 crores for FY ’25. Internal targets are even higher, indicating strong growth expectations.
Market Position:
Commands a 20 percent market share in the domestic meters market with an installed capacity of Rs 1.1 crore meters annually.
Share price movement:
The shares of this company closed at Rs 599.25 per share up by 0.10 percent on Tuesday’s market hours. The market capitalization of HPL stood at Rs 3,853.21 crores.
About the company:
Vikas Lifecare Limited is an India-based company, which is engaged in the business of trading and manufacturing polymer and rubber compounds and specialty additives for plastics, synthetic and natural rubbers, and agro products.
Joint venture:
The company’s subsidiary Genesis Gas Solutions has formed a joint venture called JV IGL Genesis Technologies with Indraprastha Gas (IGL) in the Ratio of 49:51 to set up a smart meter manufacturing unit in Noida, Uttar Pradesh with an investment of Rs 108 crores.
Capex Guidance:
Vikas Health Care plans capital expenditure of Rs 110 crores for manufacturing unit for production of smart meters.
Recent order:
Vikas Life Care recently received an order worth Rs 50 crores for premium rice varieties and organic breeds of rice. The premium rice order stood at Rs 40 crores and the organic breeds of rice stood at Rs 10 crores.
Share price movement:
The shares of this company closed at Rs 5.18 per share up by 0.39 percent on Tuesday’s market hours. The market capitalization of Vikas Lifecare Limited stood at Rs 836.66 crores.
Written by Zahal
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