Smart Meter Stock to Buy Now for Over 50% Upside—Do You Own It?
Smart Meter : The Indian electrical equipment market is on a rapid growth trajectory, expected to reach $125 billion by 2027. Among the key players in this sector, Genus Power Infrastructures Ltd has emerged as a strong contender in the smart metering segment. With the increasing demand for smart meters and government initiatives boosting adoption, this stock has significant upside potential.
Stock Price Movement
Genus Power, with a market capitalization of ₹7,538.94 crore, recently closed at ₹248.05 per share, marking a 5.81% decline from its previous close of ₹263.35. Despite this short-term dip, analysts remain bullish on its long-term prospects.
Brokerage Ratings and Target Price
ICICI Securities, one of India’s leading brokerage firms, has issued a ‘Buy’ rating on the stock with a target price of ₹376 per share, signaling a potential upside of 52% from current levels.
Strong Q3FY25 Financial Performance
Genus Power reported impressive Q3FY25 results, reflecting robust growth in revenue and profitability:
- Revenue: ₹6 billion (2.3x YoY growth)
- EBITDA: ₹1.2 billion (4.1x YoY growth)
- PAT: ₹682 million (5x YoY growth)
- EBITDA Margins: 19.3% (up 830 bps YoY)
The company has maintained its FY25 revenue guidance of ₹25 billion and expects 30-40% revenue growth in FY26. With 9MFY25 revenue at ₹15 billion and an EBITDA margin of 17.4%, Genus Power remains on track for strong execution in Q4FY25.
Robust Order Book and Future Growth Prospects
One of the key strengths of Genus Power is its solid order book, which stands at ₹313 billion, reflecting a 55% YoY growth. Notably, ₹180 billion of this comes from smart meter supply and installation, a sector poised for long-term expansion.
Although execution has been slower than expected, the company anticipates accelerated deliveries in the upcoming quarters, fueled by strong tendering activity for FY26 and FY27.
Manufacturing Capacity and Market Leadership
Genus Power has a significant manufacturing footprint across India, with facilities in Jaipur, Haridwar, and Guwahati. With an installed production capacity of over 10 million meters, the company commands a 27% market share in India’s smart metering industry.
Company Overview and Business Segments
Genus Power Infrastructures Limited specializes in the manufacturing and supply of smart meters and metering solutions. The company operates in two segments:
- Metering Solutions – Smart meters, traditional meters, and allied products
- Strategic Investments – Investments in growth-oriented projects
The company’s expertise in the smart metering industry positions it well for future growth, especially with government initiatives promoting smart energy management.
Financial Ratios & Key Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹7,816 Cr. |
| Current Price | ₹257 |
| High / Low | ₹486 / ₹204 |
| Stock P/E | 39.0 |
| Book Value | ₹54.2 |
| Dividend Yield | 0.23% |
| ROCE (Return on Capital Employed) | 9.76% |
| ROE (Return on Equity) | 5.92% |
| Debt to Equity Ratio | 0.71 |
| Promoter Holding | 39.4% |
| Pledged Shares | 66.7% |
| QoQ Profits Growth | 17.1% |
| Quarterly Profit Variation | 405% |
| Industry P/E | 47.0 |
| Graham Number | ₹89.7 |
| Intrinsic Value | ₹88.3 |
| RSI (Relative Strength Index) | 27.6 (Oversold) |
| EPS (Earnings Per Share) | ₹6.59 |
| PEG Ratio | 55.8 |
| 200-Day Moving Average (DMA) | ₹355 |
| Free Cash Flow (3 Years) | ₹-151 Cr. |
| Free Cash Flow (Latest Year) | ₹-227 Cr. |
Should You Invest in Genus Power?
The key factors driving investor interest in Genus Power include:
✅ Strong Order Book: ₹313 billion backlog ensures revenue visibility.
✅ Growth in Smart Metering: 27% market share in a fast-growing industry.
✅ Government Push: Smart grid initiatives driving demand.
✅ Profitability Surge: 5x YoY profit growth in Q3FY25.
✅ Undervalued Stock: RSI at 27.6, indicating an oversold level and a potential bounce-back.
Final Verdict
Genus Power is well-positioned to benefit from the smart metering revolution in India. With strong financials, a solid order book, and a positive long-term outlook, the stock presents an attractive investment opportunity. The recent dip in stock price offers a potential entry point for investors looking for long-term gains.
With ICICI Securities setting a ₹376 price target, investors could see a 50%+ upside from current levels. If you’re looking for a high-growth stock in the electrical equipment sector, Genus Power might be worth considering.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.