Small-cap Powerhouse: Genus Power Infrastructures bags order worth Rs 2,259.94 crore

The Indian benchmark indices commenced the trading session with minimal movement, reflecting the subdued sentiment in global markets. The broader indices continued to exhibit stronger performance compared to the main indices. With 1,686 shares rising on the BSE and 965 shares declining, the advance-decline ratio strongly remained in favour of advances.

Notably, the BSE Power and BSE Utilities sectors displayed weak performance during the opening trades. In contrast, shares of Genus Power Infrastructures Limited, an electrical equipment company, experienced notable buying interest, propelled by the recent announcement that its wholly-owned subsidiary had successfully secured a substantial Letter of Award (LOA) valued at Rs 2,259.94 crore.

The LOA pertains to the appointment of Advanced Metering Infrastructure Service Providers (AMISPs), encompassing the design of an Advanced Metering Infrastructure (AMI) system. This includes the supply, installation, and commissioning of 27.33 lakh smart prepaid meters, system meters, and DT meters, along with corresponding energy accounting on a DBFOOT basis.

The company anticipates a strong likelihood of experiencing a consistent and substantial uptick in order volumes in the forthcoming months of the fiscal year 2024. This is due to the fact that multiple State Electricity Boards (SEBs) have initiated the bidding process for the procurement of smart meters.

Established in 1995, Genus Power Infrastructures Ltd has emerged as one of the leading players within India’s electricity metering solutions sector, commanding around 27% of the market share. The company holds a dominant position as the market leader in various meter types and boasts ‘smart metering solutions’ portfolio, driven by an in-house research and development centre. Furthermore, the company operates an Engineering, Construction, and Contracts (ECC) division, synergistically complementing its existing metering business.

Shares of the company have experienced a remarkable rally of over 195% year-to-date, currently being traded at Rs 250 per share, with a 52-week high of Rs 290 on the BSE.

Keep a close eye on this stock for the upcoming trading sessions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.