Genus Power Share Price: Will It Rise or Fall Today? Experts Weigh In

As the markets open today, all eyes are on Genus Power Infrastructures Limited (NSE:GENUSPOWER), a key player in the smart metering solutions industry. With the company’s recent quarterly results sparking volatility, investors and analysts are closely watching to see if the stock will rise or fall.

Genus Power’s share price has seen a significant correction in recent days, falling around 20% in the past five trading sessions. The primary reason for this drop is the company’s weak Q3 results, where it posted a net loss of Rs 99 million despite a surge in revenue to Rs 2.6 billion.

However, according to ICICI Securities, Genus Power remains a buy with a target price of Rs 325. The brokerage firm believes the company’s strong fundamentals and growth prospects make it a good long-term investment.

“Genus Power is among the largest players in the metering solutions industry, capturing approximately 27% of the market share,” says Yash Vora, a financial writer at Equitymaster. “The company is currently undergoing major restructuring and has shown a detailed breakup of its 1st expansion in the smart meter segment.

Genus Power’s management has guided for major smart meter revenue to contribute from the last quarter of the current fiscal year, with a full-year guidance of Rs 12 billion. This suggests that the company’s performance is expected to improve in the coming quarters.

Rahul Shah, a valuations guru at Equitymaster, believes that the recent volatility in Genus Power’s share price is a result of the market’s sensitivity to even minor missed estimates or delays in projects. He expects this trend to continue with other stocks as well.

“All eyes would now be on the management commentary (earnings call on 15 Feb), which could give investors clues about what they could expect in the coming quarters,” says Vora.

Despite the recent correction, Genus Power’s share price has seen a massive breakout on charts after a languishing performance over the years. The company’s 3-year return of 475.43% has outperformed the Nifty Midcap 100 index, which gave a return of 103.52%.

In terms of valuation, Genus Power’s price-to-sales (P/S) ratio of 7.9x is higher than the industry average of 3.1x. However, this premium valuation is justified by the company’s superior revenue growth and strong future prospects.

“Genus Power has been doing relatively well, with revenue growth that’s superior to most other companies of late,” notes the analysis by Simply Wall St. “It seems the market expects this form will continue into the future, hence the elevated P/S ratio.

Analysts expect Genus Power’s revenue to grow by 115% over the next year, significantly outpacing the industry’s forecast growth of 41%. This strong growth outlook is a key factor supporting the stock’s valuation.