Report By: Arnab Dasgupta arnab@dynamiclevels€¦ · · 2018-01-16Report By: Arnab Dasgupta – ... The Engineering Construction and Contracts Division undertakes Turnkey power

Report By: Arnab Dasgupta – [email protected]

Page 2 Source: Company, www.dynamiclevels.com

Genus Power- Energizing Lives

Company Overview and Stock price ……………………………………….……3

Product Overview……………………………………………………………….….…..4

Energy Conservation and Technology Absorption………………………….7

Industry outlook…………….…………………………………………….……..……..8

Competitive edge of Genus and Future Outlook………..……………......10

Company Financials…………………………………………………………………..11

Peer Comparison…………………………………………………..………………….15

Share holding pattern………………………………………………………………..15

UDAY :A game changer for Genus, in the coming era……….......…....16

Investment Rationale………………………………………...………….......…....17


Company’s Overview and Stock Price

Genus Power Infrastructures Limited, an ISO 9001 & 14001 certified company is an integral part of the US $400 million Kailash group. Pioneer in Smart Metering Solutions and ECC turnkey projects, Genus is equipped with avant- grade manufacturing facilities, complete forward and backward integration from plastic parts to final products, automated SMT lines, Lean Assembly techniques and a team of highly qualified and experienced engineers, Genus is committed to develop innovative and customized solution at an affordable price. Genus top-notch R&D Center, recognized by the ministry of Science and Technology, Govt. of India, has enabled it to dominate the power infrastructure and be at the forefront of new technology. Genus is a proud CMMI level 3 Company, accredited with various national and international certifications such as ISI, KEMA SABS, STS, ZIGBEE, UL and more.

EXCHANGE SYMBOL GENUS POWER

Current Price * (Rs.) 47.25

Face Value (Rs.) 1.00

52 Week High (Rs.) 62.45 (12-Jan-16)

52 Week Low (Rs.) 21.50 (16-Jun-15)

Life Time high (Rs.) 95.00 (03-Jan-08)

Life Time low (Rs.) 6.21 (12-Mar-09)

Average Daily Movement 2.57

Average Volume [20 days] 359976

1 Month Return (%) -16.01

P/E Ratio (x) 15.14

Book Value 22.03

Market Cap 1191.59 (Cr)

% of Promoter holding pledged 0

Chart Hypothesis: Above is the 1 year weekly chart of Genus Power, which shows that it has

given correction from the recent high of Rs.60 and currently trading at a support level of

Rs.46.


Product Overview

Metering Solution

Smart Meters: With an installation base of over 30

million meters, Genus is a market leader in modern

energy metering solutions. Genus offers a wide range

of customizable products and services for utilities as

well as specialized products for power trading

companies, industries and housing communities.

Prepayment Meters: The Genus-Agrim™ Pre Payment

Energy Metering Solution is a flexible and secure

revenue management solution for electricity

Distribution Companies. It is offered in accordance

with the internationally recognized STS standard which

provides meter inter-operability with vending stations

of other makes. The solution automates and simplifies

advance revenue collection, demand management and

remote two way communication.

Genus has two business divisions offering highly innovative and sustainable solutions to the power sector.

The Metering Solution Division provides a complete range of Electricity Meters such as Multi-Functional Single Phase

and Three Phase Meters, CT Operated Meters, ABT & Grid Meters, DT Meters, Pre-Payment Meters, Smart Meters,

AMI, MDAS etc.

The Engineering Construction and Contracts Division undertakes Turnkey power projects such as Sub-Station erection

upto 420kV, Laying up of transmission & distribution lines, Rural Electrification, Switchyard, Network Refurbishment

etc.


Single Phase Meters: 1 phase, 2 wire, class 1, whole

current, Tamper proof, Time of use, Static Electricity

meter conforming to IEC – 62053 – 21/23, IEC – 62054

and IS 13779. Designed for MTBF 200 years.

Three Phase Meters: A 3 phase, 4 wire, class 1, whole

current (10-100A), Time of Use, static Electricity meter

conforming to IEC-62053-21/23 and IEC-62054. Dual

processor Environment with a processor dedicated to

metrology & computation and the other for

communication & calculations. Designed for MTBF

better than 250 Years.

Group Meters: Genus Smart group Metering Solution

is an innovation for Group Housing Apartments &

clustered Areas. The Metering Solution is an

integration of 12Nos of Single Phase Individual DIN-rail

mounted meter with residential/ Remote Enabled

Display Unit (REDU) unique to each meter, Data

Collector unit, Relay Switches & GSM/GPRS module.

Wall/Pole mounting arrangement of Metering unit and

Energy display unit at Consumer premises makes it

tamperproof and cost effective solution for AMR.

Meter Test Equipment: Genus AchookTM - 1080/3080

is a portable Reference Standard Meter available for

both Single Phase & Three Phase Energy Meter Testing.

It measures the power system parameters and verifies

the accuracy of Single Phase & Three Phase Electronic

Energy Meters in laboratory as well as 'on site' testing

conditions. The use of Clamp-on CT facilities to verify &

record the accuracy of energy measurement of

Installed Meters in the field without disconnecting

them.


Meter Reading Instruments: Genus Samvaad is a

microprocessor based high speed Hand Held Unit for

Data Downloading from Electricity Meter both rometly

& locally. The device is available with different

communicating topologies i.e. Optical Communication

(RS-232), Infra Red, IrDA, LPRF. Internal memory

storage can store all Data, Load Survey & other

Tamper/Event of Meter for uploading at base station

computer software Genus URJATM for Meter data

analysis. Being rechargeable battery operated device,

it can communicate with local computer/laptop using

RS-232 (D-9pin) port.

Engineering Construction and Contracts Switchyard / Sub-stations: Genus has undertaken

projects on total turnkey basis for establishing Grid

Sub-Stations up to 220kV and capable of executing

projects up to 420kV. Following services are on offer:

New Sub-stations

Capacity augmentation

Renovation & modernization of existing

substations

Laying of associated Transmission lines

Laying of associated Under-ground cables

Transmission Lines: Genus has undertaken projects on

total turnkey basis for transmission lines up to 220kV

and capable of executing projects up to 420kV.

Following services are on offer:

Engineering, Procurement, Erection, Testing

and commissioning Transmission lines up to

420KV

Laying of under-ground cables

Re-Conductoring & Capacity enhancement of

existing transmission lines

Distribution Lines & HVDS: Genus has completed more

than 9,000 kilometer of HT lines & 25,000 kilometers

of LT lines with ACSR conductors as well Ariel bunched

cables in rural & urban areas. Following services are on

offer:

Pole mounted transformers

11,22 and 33 KV distribution lines

Re-Conductering of old lines

Arial bunched conductor on different type of

supports, erection and renovation

Load balancing, bifurcation of existing feeders

Single Phasing work

Process Industry Plant Electrification: Genus is capable

to undertake complete electrification of process plants

such as Paper Mill, Sugar Mill, Bio-mass generation

plants etc. The services on offer include following:

Conceptualize, Design, Engineering

Procurement, Erection, Testing and

commissioning

Sub-Station in co-ordination with local utility

Associated Transmission / distribution line to

supply / evacuate power

HT/LT distribution of power inside the plant

Load centers

Area Lighting

Street Lighting

Rural Electrification: Genus has completed

electrification of more than 10,000 villages in and still

counting in variety of terrains and difficult

geographies. Following services are on offer:

Pole mounted transformers

11,22 and 33 KV distribution lines


Energy Conservation and

Technology Absorption

Steps taken or impact on conservation of energy: Though the Company is enchanted to see reduction in electricity uses, the management considers it necessary to make constant efforts by using new/improved solutions to save energy everywhere to the possible extent. The Company continues its efforts to reduce and ameliorate the use of energy consumption at its all offices and at its manufacturing facilities by installing hi-tech energy monitoring and conservation systems to monitor usage, minimize wastage and boost overall efficiency at every stage of power consumption. The Company has taken the following steps in this direction:

Installation of new LED lightning having load of 20KW as compared to conventional lightning which takes approx 40 KW.

Installation of AC frequency drive in SM 350T, 250T, 210T & 150T injection moulding machines.

Insulation of heating barrel of moulding machine.

Examined the plant frequently when not in operation to recognize energy squander and taken preventive measures.

A reviewed plant consistently to analyze the fidelity of procedures established for energy power cut, and periodically inspects these plant managers and employees.

Executed a regular lighting upkeep program.

1. Steps taken by company for utilizing alternate sources of energy :

Installation of 3 KW solar panel for water lifting.

Accentuating to utilize the maximum natural sources of energy instead of using electricity.

2. Technology Absorption :

Developed linux based common meter reading instrument.

Developed Single Phase Net Metering Solution for Solar Energy.

Developed Three Phase Net Metering Solution for Solar Energy.

Developed Zigbee based AMI Metering Solution.

Developed Energy Management solution for Building Management.

Developed Single Phase and Three Phase PPEM with FSK PLC split type with CIU.

Developed AMR Metering Solution for telecom towers.

Developed DC Meters for Telecom towers.

Upgraded ‘SAMPOORNA’ Thread – through DT Meters as per the latest ant – tamper and value added features.

Upgraded Single Phase 10-60A Meter as per the latest anti-tamper and value added features.

Upgraded Three Phase 10-60A Meter as per the latest anti-tamper and value added features.

Developed Smart solution for On-line Pre Payment Metering.

3. The benefits derived like product improvement, cost reduction, product development or import substitution :

Successfully deployed POC at Uttar Gujarat Vij Company Ltd. (Gujarat), Himachal Pradesh State Electricity Board (Himachal Pradesh) and Chhattisgarh State Power Distribution Company Limited. (Chhattisgarh) for AMI Solution under Ministry of Power Smart Grid Pilot Project Mission.

Awarded with India’s first order for AMI solution deployment from Himachal Pradesh State Electricity Board.

Successfully deployed Three Phase Smart Metering Solution at CESC Kolkata.

Successfully supplied Genus Make Linux based CMRI.


Industry Outlook Power Sector – Overview and Outlook: A competent and financially viable power sector is essential for growth of a nation. The availability of quality, reliable and affordable electricity is necessary for rapid socio-economic growth of the nation. In the recent past, the Indian power sector has witnessed significant progress. The Gol’s is focused to achieve “Power For All” has accelerated the growth in this sector. During the previous year the overall power generation has been increased significantly. The huge capacity addition coupled with higher power generation and improved transmission capacity has resulted in reducing the power shortage during the last 2 to 3 years. The Central Electricity Authority (CEA) of India has projected a base load energy shortage and peak shortage to 2.1% and 2.6% respectively, in 2015-16. However as the Indian economy is on the sustained growth path, energy consumption in the country will continue to rise. India need smart and proactive approaches to meet the future demand of electricity as constant availability of the electricity would play a vital role in both fighting poverty and achieving the target of inclusive growth. The Indian power sector has been a hotbed of activity since the NDA government took over the reins two years ago. From providing a lifeline to the ailing state-owned power distribution utilities (discoms) in the form of UDAY (Ujwal DISCOM Assurance Yojana) to ramping up the country’s traditionally neglected transmission network to boosting domestic coal supply, providing subsidized gas to stranded fuel-starved plants and introducing e-auctions for short-term power purchases by discoms, many initiatives have been introduced. Power Transmission and Distribution Sector: After addressing the issue of power deficit, the government’s focus is now more on Transmission and Distribution (T&D) sector. India has set very ambitious targets for transmission sector in 12th and 13th Five year plans. During the 12th plan, around 1,10,000 ckt.


Km of transmission lines, 2,70,000 MVA of alternating current (AC) substation capacity and 12,750 MW of HDVC capacity will be added. During the 13th paln around 62,800 ckt.Km of transmission lines and 1,28,000 MVA of AC substation capacity and 15,000 MW of HDVC capacity will be added. The gol has set a target of reducing India’s Transmission and Commercial (ATC) losses to 17.1% by 2017 and to 14.1% by 2022. India’s Power T&D networks represent the critical arteries of the entire power supply value chain. The growth of power sector is clearly dependent to development of a robust and reliable T&D network. Despite attaining focus from the policy makers, India’s T&D sector remains under stress and T&D industry continues to face a number of issues such as delay in statutory clearances for commissioning of projects and sluggish redressal systems, no guidelines on use of technology and the focus for lowest price in competitive bidding, inadequate pre bid due diligence of inexperienced players and financial disability of power distribution agencies to upgrade the outdated and faulty systems due to high T&D losses. High T&D losses are mainly caused by poor and non performing infrastructure, illegal tapping of lines and faulty electric meters that undervalues actual utilization of electricity and also lead to reduce payment collection. As per the report the discoms posted around 25% AT&C losses in 2012 – 13, which is still very high. Moreover, the actual AT&C losses of discoms might be higher than official estimates as a large number of consumers still remain unmetered and their information is not available for calculation. Hence, there is an urgent need to timely address the issues of T&D sector to ensure power demand is effectively met in the future. Taking the above, Government of India has taken several positive initiatives through a range of schemes and programs to improve the T&D sector. Energy Metering Industry – Review and Outlook: Energy Metering is the backbone of the power distribution channel, which is the most critical and the only revenue generation link in the entire power supply value chain. It holds more significance in Indian context, given that the distribution sector suffers from

aggregate technical and commercial (AT&C) losses of around 25%. Electricity theft costs the Indian Power Sector around $16.02 billion per year, which is very high as compared to other countries. In India’s current power situation smart metering system is very essential in reducing AT&C looses through accurate monitoring and billing, and thereby improving revenue collection efficiency of power Discoms. It is considered as an automated process key to AT&C losses reduction. In the past few years, metering industry has been revolutionary changes, where advanced technologies have fast replaced the conventional ones. Most power utilities in India have replaced their electromechanical meters with electronic meters. These electronic energy meters are accurate, fast, tamper proof and secure instruments as compared to conventional meters. This technology advancement is giving a fillip to revenue collection efficiency of power utilities mainly by reducing instances of tampering and by correct billing.


Competitive edge of Genus Power and Future Outlook

For, over two decades Genus backed the growth of the Indian Metering Industry with installation of around 31 million electronic energy meters across the country.

Genus, with a commitment of continuous value addition through its world class in house Research and Development Centre provides a best series of smart metering solutions to the power distribution sector of India.

Genus has successfully developed Net Meters for solar energy sector and has started selling of these meters to selective users and grid-tied project developers.

In 2014-15, Genus has touched new milestone in production and sale of metering solutions. During this financial year, Genus has produced around 5.26 million meters and installed around 4.90 million meters.

Genus to grab the emerging market opportunities and with an aim to contribute toward “Make in India” drive is aggressively magnifying the areas of operation, technology domains and execution capabilities.

Esteemed Clients


Company Financials

Income Statements (In Cr)

Mar'16 Mar'15 Growth %

Annual Annual

Net Sales/Income from operations 857.65 915 -6.27%

Other Operating Income 2.11 1.01

Total Income From Operations 859.76 916

Increase/Decrease in Stocks 15.72 -46.83

Consumption of Raw Materials 548.31 663.53 -17.36%

Employees Cost 65.39 65.24 0.23%

Depreciation 13.99 16.09

Other Expenses 103.96 110.27

Total Expenditure 747.37 808.3 -7.54%

Operating Profit 112.39 107.7 4.35%

Other Income 12.03 11.36

P/L Before Int., Excpt. Items & Tax 124.42 119.06

Interest 28.88 33.24 -13.12%

P/L Before Exceptional Items & Tax 95.54 85.82

Exceptional Item 2.36 -17.44

P/L Before Tax 97.9 68.39

Tax 19.45 17.17

P/L After Tax from Ordinary Activities 78.45 51.22 53.16%

Extra Ordinary Items -- 1.9

PAT 78.45 53.12 47.68%

Equity Share Capital 25.68 25.67

Reserves 633.86 461.59

EPS (Rs.) [Before Extraordinary items] 3.06 2 53.00%

In spite of fall in Top line by 6.27% annually company through its efficient management and better economies

of scales showed jump in Net Profit by 53.16% annually.

Raw material cost came down by 17.36%

Interest cost came down by 13.12%

Unlike last year company does not had any big exceptional Item for current year.

Operating profit margin 13.11% for current year.

Net Profit margin for current year is 9.14%

EPS 3.06 vs 2.00 for 2016 and 2015 respectively


Balance Sheet (In Mn) Mar’16 Mar’15 Mar’14 Mar’13 Mar’12

Total Current Assets 7,199 6,957 5,769 5,833 6,610

Cash & Near Cash Items 619 257 95 39 46

Short Term Investments 1,010 667 915 251 223

Accounts & Notes Receivable 4,146 3,996 3,443 3,612 4,353

Inventories 1,176 1,560 866 970 902

Other Current Assets 249 478 450 961 1,087

Total Long-Term Assets 3,564 3,534 3,051 3,482 3,008

Long Term Investments 1,773 475 515 175 76

Gross Fixed Assets 1,883 1,678 1,538 1,338

Accumulated Depreciation 582 503 401 329

Net Fixed Assets 1,404 1,301 1,175 1,137 1,009

Other Long Term Assets 386 1,758 1,360 2,171 1,923

Total Current Liabilities 3,911 5,192 3,932 3,827 4,559

Accounts Payable 1,105 1,254 868 910 1,225

Short Term Borrowings 2,153 3,437 2,851 2,552 3,013

Other Short Term Liabilities 653 502 213 365 322

Total Long Term Liabilities 257 426 550 609 603

Long Term Borrowings 13 169 259 302 221

Other Long Term Borrowings 244 257 291 308 382

Total Liabilities 4,168 5,618 4,482 4,436 5,162

Long Preferred Equity 0 0 0 0 0

Minority Interest 0 0 0 0 0

Share Capital & APIC 257 1,068 1,068 1,808 1,808

Retained Earnings & Other Equity 6,339 3,804 3,269 3,072 2,648

Total Share holders’ Equity 6,595 4,873 4,338 4,879 4,456

Total Liabilities & Equity 10,763 10,490 8,820 9,316 9,618

Book Value Per Share 26 19 17 31 28

Company reduced its long term borrowing by 39.67% from Rs. 42.60 crores to 25.70 crores.

Company has not made any huge investment for new asset during the year.

Company’s cash and cash equivalent has increased by 140% from Rs. 25.70 crores to Rs. 61.90

crores.


Cash Flow (in mn)

Periodicity: Mar’15 Mar’14 Mar’13 Mar’12

Net Income 531 605 446 661

Depreciation & Amortization 161 106 89 77

Other Non-Cash Adjustments 555 -13 -48 -274

Changes in Non-Cash Capital -1,545 -219 388 -578

Cash From Operating Activities -298 478 874 -114

Disposal of Fixed Assets 5 2 2 2

Capital Expenditures -203 -155 -238 -237

Increase in Investments -84 -221 -216 -31

Decrease in Investments 61 10

Other Investing Activities -25 0 0 0

Cash From Investing Activities -245 -375 -451 -256

Dividends Paid -30 -19 -19 -19

Change in Short Term Borrowings 567 281 -475 -8

Increase in Long Term Borrowings 0 0 81 231

Decrease in Long Term Borrowings -84 -63

Increase in Capital Stocks 0 0 0 100

Decrease in Capital Stocks 0 0

Other Financing Activities 3 4 11 12

Cash From Financing Activities 456 202 -402 316

Net Changes in Cash -87 306 21 -54

Free Cash Flow (CFO-CAPEX) -501 324 637 -351

Free Cash Flow To Firm -316 584 962

Free Cash Flow To Equity -13 543 245 -126

Free Cash Flow per Share -1.95 1.73 4.01 -2.24


Ratios

Valuation Ratios

Mar’16 Mar’15 Mar’14 Mar’13

P/E 17.3x 12.2x 3.3x 4.2x

EV/EBIT 12.5x 8.1x 5.1x 7.0x

EV/EBITDA 11.2x 7.1x 4.6x 6.1x

P/S 1.6x 0.7x 0.3x 0.3x

P/B 2.1x 1.3x 0.6x 0.4x

Div Yield - 82.10% 92.20% 87.00%

Profitability Ratios


Gross Margin - - - -

EBITDA Margin 14.7 13.8 13.8 11

Operating Margin 13.1 12.1 12.4 9.7

Profit Margin 9.1 5.8 7.9 6.8

Return on Assets 7.4 5.5 6.7 4.7

Return on Equity 13.7 11.5 13.1 9.5

Leverage and Coverage Ratios


Current Ratio 1.8 1.3 1.5 1.5

Quick Ratio 1.5 0.9 1.1 1

EBIT/Interest 3.9 4.4 3.6 1.8

Tot Debt/Capital 0.2 0.4 0.4 0.4

Tot Debt/Equity 0.3 0.7 0.7 0.6

Eff Tax Rate % 19.9 25.8 1.4 4.9


PEER Comparison

Company Name: GENUS POWER INFR

CENTUM ELEC LTD

MIC ELECTRONICS

BHARAT ELECTRON

Latest Fiscal Year: 03/2016 03/2016 03/2016 03/2016

52-Week High 62.45 929.95 29.50 1,416.85

52-Week High Date 1/12/2016 8/7/2015 7/10/2015 1/4/2016

52-Week Low 21.50 450.10 11.65 984.00

52-Week Low Date 6/16/2015 2/15/2016 6/8/2015 8/25/2015

Daily Volume 115,231 3,900 444,969 277,239

Current Price: 47.25 480.45 13.10 1,217.35

52-Week High % Change -21.9% -48.1% -54.2% -14.9%

52-Week Low % Change 127.0% 7.2% 23.3% 22.6%

Market Capitalization 12,532.2 6,106.4 2,242.9 289,452.0

Total Debt 2,165.4 814.2 1,610.3 286.4

Minority Interest - 302.1 - 47.6

Cash and Equivalents 1,628.7 632.1 5.6 75,528.9

Current Enterprise Value 13,068.9 6,590.6 3,847.6 214,257.1

Shareholding Pattern Shareholding Pattern Mar’16 Dec’15 Sep’15 Jun’15 Mar’15

Promoter and Promoter Group %) 50.58 50.58 50.58 50.58 50.61

Indian 50.58 50.58 50.58 50.58 50.61

Foreign NIL NIL NIL NIL NIL

Institutions (%) 5.41 0.55 0.39 0.44 0.25

FII 0.57 0.37 0.03 0.07 0.19

DII 4.84 0.18 0.36 0.37 0.06

Non Institutions (%) 44.01 48.87 49.02 48.98 49.15

Bodies Corporate NIL NIL 8.85 8.31 8.67

Others 44.01 48.87 40.18 40.66 40.47

Custodians NIL NIL NIL NIL NIL

Total no. of shares (cr.) 25.68 25.68 25.68 25.68 25.67


Ujwal DISCOM Assurance Yojana (UDAY) –A game changer for Genus, in the coming

era: UDAY is the financial turnaround and revival package for electricity distribution companies of India (DISCOMs).DISCOMs in the country have accumulated losses of approximately Rs. 3.8 lakh crore and outstanding debt of approximately Rs. 4.3 lakh crore (as on March, 2015). Financially stressed DISCOMs are not able to supply adequate power at affordable rates, which hampers quality of life and overall economic growth and development. Initiated by the Government of India with the intent to find a permanent solution to the financial mess that the power distribution is inGoI has proposed to revive/restructure discoms’ financial health for the third time through Ujjwal Discom Assurance Yojna (UDAY), with an outlay of USD 7 bn. The earlier two bailouts have failed miserably with losses of discoms amounting to Rs 3.8 tn.

UDAY has 3 elements.

clears up the legacy issues of past losses and debt - Under UDAY, state governments are being asked to take over 75% of the debt of the discoms over two years - 50% in 2015-16 and 25% in 2016-17. The balance 25% of the debt will be converted into loans or bonds at concessional interest rates. Collectively discoms owe Rs 5.5 tn to banks;

provides a financial road map to bring tariffs in line with costs by FY19; and

provides enough deterrents for the state government to not allow the state discoms to become loss ridden, post FY18, as losses start to impact their fiscal responsibility and budget management (FRBM) limits.

The scheme comprises 4 major initiatives i.e.

improving operational efficiencies of discoms (through strict discipline of quarterly fuel cost adjustment, annual tariff increase, taking regulators on board and finally including discom losses in the FRBM limits for the states);

reduction of cost of power (through coal swapping);

reduction in interest cost of discoms (through low interest rates); and

enforcing financial discipline on discoms through alignment with state finances.

UDAY is a step in the right direction which has potential to unclog the entire power chain. Genus has 20% market share in the electronic meter’s market is set to be a major beneficiary of this scheme. Smart metering solutions offered by Genus precisely tackles the issues of discoms through its unique features such as tamper-proof design & packaging, AMR techniques, accurate billing, auditing, meter data analysis, outage etc. With extensive experience and state-of-the-art indigenous technology in smart metering solutions.


Investment Rationale

The company is in the leading position in India’s electronic meter industry.

Genus Power has been providing one-step advanced solutions of energy metering to Indian Power distribution

utility for over two decades.

The Company aim to contribute towards “Make in India” project of government.

Genus is firmly ready to entrench itself as ‘Technology Leader’ and ‘Market Leader’ in providing the turnkey ECC

solution for the power T&D sector.

The stock is trading at a low PE ratio of 15.22 with Book Value 22.03 and Market Capitalization of 1195.44(Cr).

The Company is continuously decreasing its long term borrowing in YoY basis.

Smart metering solutions offered by Genus tackles the pain points of distribution utilities through its unique

features such as tamperproof design & packaging, automated meter reading (AMR) techniques, accurate billing,

auditing, meter data analysis, outage, etc. With extensive experience and state-of-the-art indigenous technology,

Genus helps power utilities in shrinking their T&D losses and enhance revenues and is at the forefront of power

infrastructure.

India plans to spend USD 21.6 bn in development of smart grid technology during 2015-25 and ~130 mn smart

meters are expected to be installed during this period.

Meter business is expected to grow with a CAGR of 14% during FY15-18E and margins to stabilize.

If UDAY is implemented as planned, then Genus, which has 20% market share in electronic metering market, will

be a direct beneficiary

We recommend BUY in Genus Power @ 46-48, TARGET 60 as Genus Power is in the leading position in India’s electronic meter industry trading at a low PE of 12 and If UDAY is implemented as planned, then Genus, which has 20% market share in electronic metering market, will be a direct beneficiary

https://www.dynamiclevels.com/en/genus-power-share-price


Disclaimer: Research Disclaimer and Disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014. Dynamic Equities Pvt. Ltd. is a member of National Stock Exchange of India Ltd. (NSEIL), Bombay Stock Exchange Ltd (BSE), Multi Stock Exchange of India Ltd (MCX-SX) and also a depository participant with National Securities Depository Ltd (NSDL) and Central Depository Services Ltd.(CDSL). Dynamic is engaged in the business of Stock Broking, Depository Services, Investment Advisory Services and Portfolio Management Services. Dynamic Equities Pvt. Ltd. is holding company of Dynamic Commodities Pvt. Ltd. , a member of Multi Commodities Exchange (MCX) & National Commodity & Derivatives Exchange Ltd.(NCDEX). We hereby declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty on for certain operational deviations. Answers to the Best of the knowledge and belief of Dynamic/ its Associates/ Research Analyst who prepared this report

DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the research report or at the time of public appearance? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months? No

DYANMIC/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the Subject Company or third party in connection with the research report? No

DYANMIC/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company? No

DYANMIC/its Associates/ Research Analyst/ his Relative have been engaged in market making activity for the subject company? No

General Disclaimer: - This Research Report (hereinafter called “Report”) is meant solely for use by the recipient and is not for circulation. This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through Dynamic nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security (ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients of this Report should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. This Report has been prepared on the basis of publicly available information, internally developed data and other sources believed by Dynamic to be reliable. Dynamic or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information / opinions / views. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of Dynamic shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including loss profits arising in any way whatsoever from the information / opinions / views contained in this Report. The price and value of the investments referred to in this Report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide for future performance. Dynamic levels do not provide tax advice to its clients, and all investors are strongly advised to consult with their tax advisers regarding taxation aspects of any potential investment. Opinions expressed are our current opinions as of the date appearing on this Research only. We do not undertake to advise you as to any change of our views expressed in this Report. User should keep this risk in mind and not hold dynamic levels, its employees and associates responsible for any losses, damages of any type whatsoever. Dynamic and its associates or employees may; (a) from time to time, have long or short positions in, and buy or sell the investments in/ security of company (ies) mentioned herein and it may not be construed as potential conflict of interest with respect to any recommendation and related information and opinions. Without limiting any of the foregoing, in no event shall Dynamic and its associates or employees or any third party involved in, or related to computing or compiling the information have any liability for any damages of any kind. We and our affiliates/associates, officers, directors, and employees, Research Analyst(including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company (ies) discussed herein or act as advisor to such company (ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of Research Report. Dynamic may have proprietary long/short position in the above mentioned scrip(s) and therefore may be considered as interested. The views provided herein are general in nature and does not consider risk appetite or investment objective of particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Dynamic. Dynamic Equities Pvt. Ltd. are also engaged in Proprietary Trading apart from Client Business.

https://www.dynamiclevels.com/en/disclaimer

https://www.dynamiclevels.com/en/disclaimer

Documents

Report By: Arnab Dasgupta arnab@dynamiclevels€¦ · · 2018-01-16Report By: Arnab Dasgupta – ... The Engineering Construction and Contracts Division undertakes Turnkey power