Company Visit Note: Genus Power Infrastructure Ltd - BUY - TP Rs.79 - Kotak

We recently met the management of Genus Power (GPIL). The management was very positive on the demand outlook for meters. Our interaction with other industry players also corroborates this view. After the order win of smart meters in Q3FY18, news-reports indicate that GPIL is the lowest bidder in prepaid meter tender. Based on robust demand outlook, we project strong revenue and earnings growth. We reiterate BUY with a target price of Rs 79 (21x FY20E).

Risks

1) Higher commodity prices could dent near-term margins in excess of our projections;

2) Delay in payment from SEBs/EESL could elongate working capital, which could lead to higher interest expenses.

Shares of GENUS POWER INFRASTRUCTURES LTD. was last trading in BSE at Rs.55.1 as compared to the previous close of Rs. 52.5. The total number of shares traded during the day was 133633 in over 676 trades.

The stock hit an intraday high of Rs. 55.2 and intraday low of 53.1. The net turnover during the day was Rs. 7217205.

Source : Equity Bulls

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