>GENUS POWER INFRASTRUCTURES LTD. (CD EQUIRESEARCH)

Company Brief
Genus Power Infrastructures Ltd is a power infrastructure company engaged in business of Turnkey T&D projects, Electronic Meters, UPS & Inverters. It is a pioneer and one of the largest electronic meter manufacturers in the country.

Highlights
■ Genus power has a strong order book position of Rs 970 crore as on Sep 09, which is around 1.7 x FY09 sales. This provides a clear revenue visibility for coming years

■ Demand for meters is increasing at a remarkable pace Genus being one of the leaders with ~ 30% market share, expects to immensely benefit out of this opportunity.

■ Genus is a play on significant investment planned in the Power sector and as the government implements its various schemes, demand for company’s products would increase.

■ The Government through its various policies is making full effort to achieve its target of complete electrification of rural households and 100% tamper proof metering. This augurs well for Genus and opens up a huge opportunity.

■ With good recognition of its products in Latin American countries, Genus sees a great business opportunity for meters in overseas market.

■ The recent erosion in market capitalisation due to fire in one of its plant offers good entry point for investors. At the current price of Rs 133, the stock trades at a P/E multiple of 6.0 x FY10E earnings and 3.4 x FY11E earnings & P/BV of 0.6 x FY10E BV and P/BV of 0.5 x FY11E BV. We recommend a “BUY” on the stock with a price target of Rs 235, assuming a P/E multiple of 6 x FY11E earnings, an upside of 76%, over a period of 12 months.

To read the full report: GENUS POWER INFRASTRUCTURE