Genus Power Infrastructures Ltd., founded in 1992, is an Indian company known for its contributions to the power sector, particularly in smart metering solutions. They are considered a leading player in the Indian electricity metering industry, holding a market share of approximately 27%.
Genus Power Products
- Manufacturing and supplying a variety of metering products and solutions: This includes electricity meters, data loggers, smart gas and water meters.
- Acting as an Advanced Metering Infrastructure Service Provider (AMISP): Genus designs, finances, builds, owns, operates, and transfers smart metering solutions on a DBFOOT (Design, Build, Finance, Own, Operate, Transfer) basis.
- Developing and producing innovative and customized solutions: Their solutions encompass electricity, gas, and water metering, aiming to cater to diverse needs at affordable prices. They have a well-established R&D center recognized by the Ministry of Science and Technology, Government of India.
Genus Power Fundamentals
- Revenue Growth: 18%
- Profit Growth: 35.49%
- Return on Equity (ROE): 3.62%
- Return on Capital Employed (ROCE): 6.14%
- Price to Earnings Ratio (PE Ratio): 131.98
- Debt to Equity Ratio: 0.64
Genus Power Revenue and Net Profit
- Revenue:
- Q3 FY 2023-24: ₹257.15 Cr (grew 15.95% YoY)
- FY 2022-23: Not readily available but annual reports can be found on their website (https://genuspower.com/wp-content/uploads/2022/08/Genus-Power-AR-2021-22-Lite.pdf)
- Net Profit:
- Q3 FY 2023-24: ₹-9.92 Cr (decreased 145.53% YoY)
- FY 2022-23: Not readily available but annual reports can be found on their website (https://genuspower.com/wp-content/uploads/2022/08/Genus-Power-AR-2021-22-Lite.pdf)
Genus Power Shareholding Patterns
Promoter and Promoter Group: As of December 2023, promoters and the promoter group hold 50.27% of the company’s shares. This indicates that the controlling stake of the company remains with the founding individuals and their associates.
Institutional Investors: Institutional investors, including Foreign Institutional Investors (FIIs), Domestic Institutional Investors (DIIs), and Mutual Funds, hold a combined 7.71% of the shares. This shows a relatively low institutional investor participation compared to some other companies.
Public Shareholding: The remaining 42.02% of the shares are held by the public, which includes individual retail investors and other non-institutional entities.
Genus Power Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Share Price |
|---|---|
| 2025 | ₹388 |
| 2026 | ₹416 |
| 2027 | ₹577 |
| 2028 | ₹643 |
| 2029 | ₹734 |
Genus Power Share Price Target for 2025
Genus Power Share Price Target for 2025 is 388.
Genus Power Share Price Target for 2026
Genus Power Share Price Target for 2026 is 416.
Genus Power Share Price Target for 2027
Genus Power Share Price Target for 2027 is 577.
Genus Power Share Price Target for 2028
Genus Power Share Price Target for 2028 is 643.
Genus Power Share Price Target for 2029
Genus Power Share Price Target for 2029 is 734.
Read more: Vikas Lifecare Share Price Target for 2025, 2026, 2027, 2028, 2029
Genus Power Dividend History
Genus Power has a limited history of paying dividends. Here’s a breakdown:
- 2023: Paid a dividend of ₹0.75 per share.
- 2022: Paid a dividend of ₹0.25 per share.
- 2021: Paid a dividend of ₹0.50 per share.
- 2020: Paid a dividend of ₹0.10 per share.
- 2019: Paid a dividend of ₹0.58 per share.
Future Outlook of Genus Power
Positive factors:
- Market leader in smart metering: Genus Power holds a significant market share in the Indian smart metering industry, which is expected to grow significantly in the coming years due to government initiatives and increasing demand for energy efficiency.
- Diversified product portfolio: They offer various metering solutions beyond electricity, including gas and water, catering to broader market needs.
- Strong order book: Their current order book indicates potential future revenue growth.
- Investment in R&D: Having a recognized R&D center demonstrates their commitment to innovation and adapting to technological advancements.
Risks Associated With Investing in Genus Power
Industry-specific risks:
- Competition: The smart metering market in India is becoming increasingly competitive, with established players and new entrants vying for market share. This competition could put pressure on Genus Power’s profitability and growth prospects.
- Government regulations: The Indian government plays a significant role in the power sector, and changes in regulations, such as pricing policies or subsidy schemes, could negatively impact Genus Power’s business.
- Dependence on government contracts: A significant portion of Genus Power’s revenue comes from government contracts. Delays in project approvals or changes in government policies could affect their cash flow and growth prospects.
Company-specific risks:
- Profitability: While showing some recent growth, Genus Power’s overall profitability remains relatively low, raising concerns about their ability to generate sustainable returns for investors.
- Valuation: The current PE ratio suggests potential overvaluation compared to their earnings, implying that the stock price might be higher than its intrinsic value.
- Debt level: While not overly concerning at present, the debt level should be monitored as it can impact financial flexibility and future growth potential.
- Execution risk: The success of Genus Power’s future growth plans hinges on their ability to effectively execute their strategies, including product development, market expansion, and operational efficiency.
Genus Power Competitors
Genus Power faces competition from various players in the smart metering and broader power infrastructure space. Here’s a breakdown of some key competitors:
Direct Competitors – Smart Metering:
- Itron: A global leader in smart metering solutions and related services, offering cloud-based end-to-end solutions for smart grids.
- Sense: An AI and app-based energy monitoring provider known for its user-friendly solutions.
- Discovergy: A manufacturer of smart meters and energy monitoring products, focusing on the European market.
- Gram Power: Specializes in manufacturing smart meters and offering off-grid electricity solutions.
Indirect Competitors:
- Honeywell Automation India: Provides a wider range of automation solutions within the power sector, including smart grid technologies.
- ITI: A diversified engineering and manufacturing company offering various products and services relevant to the power sector, including metering solutions.
- Kaynes Technology India: Offers a range of electrical equipment and solutions, including smart meters and related infrastructure.
Genus Power FAQs
Company & Products:
- What does Genus Power do?
- Genus Power is a leading Indian company specializing in smart metering solutions. They manufacture and supply various metering products, including electricity, gas, and water meters, and act as an Advanced Metering Infrastructure Service Provider (AMISP).
- What is Genus Power’s market share?
- They hold a significant market share (around 27%) in the Indian electricity metering industry.
Financials:
- Is Genus Power profitable?
- While showing some recent growth, their overall profitability remains relatively low.
- Is Genus Power a good investment?
- This is a complex question with no definitive answer. Genus Power presents a mix of potential opportunities and risks, and making any investment decision requires thorough research, considering your individual risk tolerance and financial goals. Consulting with a financial advisor is recommended before making investment decisions.
Future Outlook:
- What is the future outlook for Genus Power?
- The future appears mixed. They have positive aspects like market leadership and a strong order book, but profitability needs improvement, and competition poses a challenge.
- What are the risks associated with investing in Genus Power?
- Key risks include competition, government regulations, dependence on government contracts, profitability concerns, valuation, debt level, execution risk, economic slowdown, and various financial market fluctuations.