ICICI Securities assigns Buy On Small Cap Industrials Stock, Scrip Surges 55.18% In 1 Month

ICICI Securities has a Buy recommendation of Genus Power Infrastructure Ltd. with a revised Target Price of Rs 185 apiece (Earlier Rs 121/share). If the stock is purchased at the current market price, it can fetch up to 14% return considering the assigned target price by the brokerage firm.

Genus Power Infrastructure Ltd. is a small-cap company from the industrial sector that operates in the Other Electrical Sector. The company is an integral part of the US $400 million Kailash Group. Genus has two business divisions offering highly innovative and sustainable solutions to the power sector. The company has a market valuation of Rs 4205.94 Crore.

Buy for a target price of Rs 185 apiece

According to ICICI Securities, Genus Power Infrastructure (Genus) has entered into the big league by: a) striking a marquee deal with GIC for an equity infusion of Rs5.2bn for 15% stake, and b) setting up a platform - an SPV (26% Genus and 74% GIC). This will enable Genus to participate in smart meter bids - an opportunity size of Rs300bn. Genus's share in equity contribution towards the platform stands at US$210mn. It will be the exclusive supplier of smart meters to the SPV.
"Note that bidding for smart meters is picking up - orders worth Rs180bn have been concluded while another Rs780bn are under bidding. We also expect Genus to benefit from the easing semiconductor supply constraints and falling semiconductor prices. We expect 74% revenue CAGR and 6x profit growth through FY23-FY25E driven by strong order backlog and pick-up in execution. We value Genus at a target price of Rs185/share, or 28x FY25E EPS of Rs6.5/share (earlier TP: Rs121/share)," the brokerage has said.

Stock Movement

On Tuesday, the stock last traded at Rs 163.25 apiece on BSE, down 0.27% from its previous close of Rs 163.70 apiece on BSE. The stock hit an intraday high of Rs 168.70 apiece and an intraday low of Rs 160.90 apiece on BSE.

The stock has given 15.99% positive return in the past 1 week. It has given 55.18% in the past 1 month, 85.85% in the past 3 months and 88.18% in the past 6 months, respectively. It gave 106.51% multibagger return in 1 year, and 118.98% in the past 2 years, respectively. It has given 526.68% positive return in the past 3 years and 289.15% in the past 5 years, respectively.

Disclaimer - The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.