Small Cap Power Infra Stock Gained 200% In 3 Yrs, ICICI Securities Recommends "Buy" For 41% Gains

ICICI Securities places a "Buy" on Genus Power Infrastructures Ltd, a small-cap stock that provides solutions to the power sector. The brokerage has assigned a target price of Rs 121 apiece on the stock of the company. According to the given target price, if you buy the stock at the current market price, it could fetch a return of up to 41%. Genus Power Infrastructures is an integral part of the Kailash Group, The company has two business divisions offering highly innovative and sustainable solutions to the power sector. Here are the key takeaways from the report and stock:

Genus Power Infrastructures

Genus Power Infrastructures' stock last traded at Rs 86 apiece, down 0.81% from the previous close. The stock in a week has fallen a massive 8.66%, however, it surged 1.3% in 1 month. In 1 year it has gained 8.72%. It has given the highest 200.17% positive return in 3 years. In 5 years it gave 18.54% positive return.

The stock hits 52 week high on 21 April 2022 at Rs 112.50 apiece and 52 week low on 7 March 2022 at Rs 58 apiece, respectively. The company's market valuation as on February 8, 2023, has Rs 2,215.32 crore.

ICICI Securities Suggests "buy" the stock for a Target Price of Rs 121 apiece

According to the brokerage, Genus Power Infrastructures' (GPIL) Q3FY23 revenue was Rs2bn (+2.3% YoY, -8.3% QoQ) while EBITDA was Rs205mn (-2% YoY, +21.7% QoQ). EBITDA margin improved to 10.2% (from 7.7% in Q2FY23) on the back of commodity price moderation leading to improved gross margin. PAT at Rs116mn was up 41.6% YoY and 14% QoQ, supported by higher other income at Rs82mn (+98% YoY, +7.2% QoQ). GPIL received LoA worth Rs24.2bn (net of taxes) from the state of Assam for the implementation of advanced metering infrastructure (AMI) for installation and operations of 2.949mn smart meters in Jan'23. The order takes the orderbook to Rs40.99bn (net of taxes) from Rs16.8bn at Q3FY23-end and provides good visibility for higher order execution in near-to-medium term. "We expect margin improvement to continue as commodity costs ease further and semiconductor supply chains normalise. Maintain BUY with a revised target price of Rs121/sh (from Rs107)," the brokerage has said.

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.