Smart Metering Stocks In India: In everyday life, electricity is a major part of our lifestyle and a necessity. The electricity payments are made after the use of power each month and became due. Nowadays, power companies are implementing prepaid payments using smart meters for electricity, which can help their cash flows as well as improve collection.

The increased use of Smart Metres can assist power companies in understanding consumer usage and behaviour patterns, analysing peak demand periods, implementing demand response programs, and so on. These initiatives help to improve further by adding some more features to enhance their efficiency. In this article, we will look at some companies which are into smart meters.

List Of Smart Metering Stocks In India

Smart Metering Stocks In India #1: Tata Power

Smart Metering Stocks In India - Tata Power

Tata Power, formerly known as Tata Electric, under Tata Group, has led the way in technology adoption in the utility sector, having established one of India’s first hydroelectric power stations in 1915.

Along with its subsidiaries and joint ventures, has 12,772 MW of generation capacity, with 30 percent coming from clean and green sources. Tata Power offers green technologies for the smart customer, from thermal and renewable energy sources to energy-saving power services.

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As of FY23, the company had installed over 5.1 lakh smart meters. According to a recent transcript, they have installed approximately 3.6 L smart meters in Odisha. Tata Power has replaced nearly 27 lakh meters out of 95 lakh customers in Odisha. Installing smart meters has helped improve billing efficiency and collection in Odisha. The results of installing smart meters will be seen in the coming quarters.

In FY23, the company’s portfolio included Generation (30.39%), Renewables (13.72%), Transmission and Distribution of Power (55.04%), Others (0.69%), and the remaining 0.13% from Unallocable revenue. In FY23, they derived revenue from customer contracts, accounting for approximately 96.86% of total income, with the remaining 3.13% coming from other sources.

Tata Power’s revenue from operations in FY23 was Rs. 55,109.80 crore, up 28.71% year on year from Rs. 42,815.67 crore. Net profits stood at Rs. 3,809.67 crore in FY23, up 76.73% from Rs. 2,155.61 crore. 

ParticularsAmountParticularsAmount
CMP₹427.85Market Cap (Cr.)₹139,141.00
Stock P/E (TTM)40.96EPS (TTM)₹10.63
RoE (%) (TTM)11.42%RoCE (%) (TTM)10.41%
Promoter Holdings (%)46.86%FII Holdings (%)9.45%
Debt to Equity Ratio (TTM)1.66Interest Coverage Ratio2.25
Current Ratio (TTM)0.95Net Profit Margin (%)6.86%

Smart Metering Stocks In India #2: Genus Power Infrastructures

Genus Power Infrastructures logo

Genus Power Infrastructures, an enterprise under the Kailash Group. Genus operates under business divisions that provide highly innovative and sustainable solutions to the power sector.

A wide variety of electrical meters and solutions, such as multifunctional single and three phase meters, CT operated meters, ABT and grid meters, DT meters, prepayment meters, smart meters, net meters, and so on, are offered by Genus Metering Solution Division (GMSD) to utilities.

The Engineering Construction and Contracts (ECC) Division works on turnkey power projects such as substation erection up to 420kV, transmission and distribution line construction, rural electrification, switchyards, and network refurbishment.

As per the recent transcript, Genus Power has secured prestigious orders aggregating to around Rs. 16,185 crores for installation of approximately 1.82 crore smart prepaid meters. Their total order book has surpassed Rs. 20,000 crores with Q3FY24 total was Rs. 9,522 crore. The execution cycle of the current order book is around 27 to 30 months, providing healthy visibility for topline growth in FY25 and FY26. 

Numerous state electricity boards have commenced the bidding process to procure smart meters, indicating a high probability of steady order inflow in FY25 as well. The company expects a significant surge in revenue from FY25 onwards driven by strong execution of the order book. On a conservative basis, it expects total revenue of around Rs. 2,500 crores in FY25.

They earned the majority of their revenue from metering business which accounted for 98.33%, 0.73% from Strategic Investment activity, and the remaining 0.93% from Others. 

The business’s operating income during FY23 stood at Rs. 808.38 crore compared to Rs. 685.06 crore in FY22. The Net profits in FY23 stood at Rs. 28.97 crore compared to Rs. 57.45 crore in FY22.

ParticularsAmountParticularsAmount
CMP₹289.00Market Cap (Cr.)₹8,790.66
Stock P/E (TTM)172.26EPS (TTM)₹1.68
RoE (%) (TTM)7.09%RoCE (%) (TTM)9.96%
Promoter Holdings (%)42.66%FII Holdings (%)16.87%
Debt to Equity Ratio (TTM)0.29Interest Coverage Ratio2.55
Current Ratio (TTM)4.4Net Profit Margin (%)3.67%

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Smart Metering Stocks In India #3: HPL Electric & Power

Smart Metering Stocks In India - HPL Electric & Power

HPL Electric & Power manufactures electrical equipment in four major categories: metering, switchgear, lighting and electronics, and cable. The Metering division contributes significantly to its revenue. The product line comprises digital panel meters, smart meters, net meters for cordless chimes, prepaid metering solutions, solar roof tops, trivector meters, and the Ebrit Digital Panel Meter.

They operate seven manufacturing facilities, 90+ branch and representative offices, 21 warehouses in India, 900+ dealers and distributors, and 27,000+ retailers. As per the recent transcript, HPL is focused on supplying smart meters to AMISPs as part of the government’s Revamped Distribution Sector Scheme (RDSS) for rolling out 25 crore smart meters across India.

HPL’s current order book of over Rs. 2,400 crore, around Rs. 2,100 crore is for smart meter orders from AMISPs. Around 90% of these smart meter orders are for a supply period of 2.5 to 3 years. HPL is enhancing its smart meter production capacity through automation and specific capacity expansions in electronics and plastic industry.

Its current installed capacity is roughly 1 crore smart meters per year. The demand for smart meters is expected to peak in mid-FY25 as more AMISPs reach their execution peak for meter deployment. HPL aims to have sufficient capacity ready by then. They earned 53.08% of their revenue from metering and systems, with the remaining 46.91% coming from consumables and industrials.

Their revenue based on geography is 96.35% from the domestic market and the remaining 3.64% from the international market in FY23. HPL Power earned its revenue from operations of Rs. 1,262.20 crore in FY23, compared to Rs. 1,013.95 crore in FY22. Net profits stood at Rs. 30.24 crore in FY23, up 287.57% YoY from Rs. 7.80 crore in FY22.

ParticularsAmountParticularsAmount
CMP₹413.00Market Cap (Cr.)₹2,653.36
Stock P/E (TTM)64.58EPS (TTM)₹6.39
RoE (%) (TTM)4.38%RoCE (%) (TTM)9.32%
Promoter Holdings (%)72.66%FII Holdings (%)0.24%
Debt to Equity Ratio (TTM)0.79Interest Coverage Ratio1.62
Current Ratio (TTM)4.29Net Profit Margin (%)2.40%

Smart Metering Stocks In India #4: Adani Energy Solutions

Adani Energy Solutions logo

Adani Energy Solutions, formerly Adani Transmission Ltd of the Adani Group, is an Indian power transmission firm that began operations in 2006. It is involved in the business of transmitting electricity. The corporation also engages in the trading of agricultural goods.

Today, AESL is the largest private transmission business, with over 20,400 kilometers of transmission lines and around 54,600 MVA of power transformation capacity. AESL has also set an ambitious objective of 30,000 km of transmission lines by 2030, utilizing both internal and inorganic expansion prospects.

As per the recent transcript, The company has already won smart meter projects worth a total contract value of around INR 27,000 crores across various states like Maharashtra, Bihar, Assam, Uttarakhand, and Andhra Pradesh. Over the next 12-18 months, the company plans to aggressively start deploying all these smart meters for the contracts it has won. 

Adani has formed partnerships with companies such as Esyasoft for networking infrastructure and Airtel for communication lines to deploy smart meters, as well as other partnerships for cybersecurity, cloud services, and so on. The company expects to incur a capex of around INR 1,000-2,000 crores in FY2025 towards smart meter deployment based on the meters that get installed. 

They derived revenue from operations from segments like Transmission accounted for 29.67%, Trading – 5.68%, and GTD Business – 64.63% in FY23. The company’s revenue from operations of Rs. 12,537.07 crore in FY23 improved 20.13% YoY from Rs. 10,435.61 crore in FY22. Net Profits stood at Rs. 1,280.60 crore in FY23, up 3.62% from Rs. 1,235.75 crore in FY22.

ParticularsAmountParticularsAmount
CMP₹1,019.70Market Cap (Cr.)₹113,428.00
Stock P/E (TTM)99.69EPS (TTM)₹10.20
RoE (%) (TTM)9.00%RoCE (%) (TTM)8.97%
Promoter Holdings (%)73.22%FII Holdings (%)17.49%
Debt to Equity Ratio (TTM)2.93Interest Coverage Ratio1.62
Current Ratio (TTM)1.79Net Profit Margin (%)9.63%

Smart Metering Stocks In India #5: GMR Power and Urban Infra

Smart Metering Stocks In India - GMR Power and Urban Infra

GMR Power and Urban Infra(GPUIL), a subsidiary of GEPL within the GMR Group. They are experts in energy, urban infrastructure, and transportation. The GMR energy sector has an installed capacity of more than 3000 MW and uses a balanced fuel mix of coal, gas, LSHS, and renewable sources such as wind and solar energy.

Apart from that, plants with a generation capacity of more than 1000 MW are in various phases of development in India and Nepal. The Group’s transportation business concentrates on surface transportation projects such as roads, railways, and airstrips/runways in both the DBFOT (GMR Highways) and EPC (GIL – EPC) segments. With six functioning assets, the total length of roads and highways exceeds 2,400 lane kilometers.

As per the recent transcript, GPUIL is working on implementing an Advanced Metering Infrastructure (AMI) Project which involves the Installation, integration, and maintenance of 75.69 lakh prepaid smart meters Spanning across 22 districts of Uttar Pradesh for 10 years with a Total contract value of approx. INR 7,593 crores.

The AMI project includes supply, installation, integration, commissioning and operation & maintenance of smart meters on a DBFOOT (Design, Build, Finance, Own, Operate and Transfer) basis. GPUIL has received Letters of Award from two Uttar Pradesh power distribution companies – Purvanchal Vidyut Vitran Nigam Limited and Dakshinanchal Vidyut Vitran Nigam Limited for implementing this project.

GMR Power earn their revenue from operations from segments such as Power – 62.86%, Roads – 11.85%, EPC – 19.59% and others – 5.7% in FY23. Their geographical segment from India accounted for 46.38% and the remaining 53.61% from Outside India in FY23.

Their revenue from operations in FY23 stood at Rs. 5,524.69 crore, up 34.68% from Rs. 4,101.81 crore in FY22. Net profits stood at Rs. 1,139.24 crore in FY23 compared to a loss of Rs. 651.57 crore in FY22.

ParticularsAmountParticularsAmount
CMP₹67.05Market Cap (Cr.)₹3,999.42
EV to Sales (TTM)2.63RoA (%) (TTM)7.06%
RoE (%) (TTM)19.77%RoCE (%) (TTM)9.87%
Promoter Holdings (%)59.83%FII Holdings (%)5.06%
Debt to Equity Ratio (TTM)2.49Interest Coverage Ratio0.96
Current Ratio (TTM)0.66Net Profit Margin (%)-0.97%

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Conclusion

As we near the end of the article Smart Metering Stocks In India, the smart metering is picking up pace due to factors like increasing energy demand. Swapping old meters and better connectivity would help the power companies. These initiatives help these companies to earn revenue.

Growing energy demands, more construction of houses due to financing might prop up more demand for smart meters in the future. What do you think about these companies potential? Let us know your views in the comments section below.

Written by Santhosh

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