Genus Power Share Price Target: Genus Power Infrastructures Ltd (Genus Power) is a leading manufacturer of electrical equipment in India with a focus on power backup, distribution and management solutions. In this article, we will analyze Genus Power’s business model, financials, growth prospects and future outlook.
The article is structured into sections covering company background, products/services, financial ratios, shareholding patterns, and past and expected future share price targets till 2030. It also includes historical dividend data and frequently asked questions about Genus Power shares.
Table of Contents
Fundamental Analysis Of Genus Power
Fundamental analysis refers to analyzing a company’s financial health, management efficiency and competitive advantages to determine its intrinsic value and growth prospects.
Let’s look at some key financial ratios and metrics of Genus Power:
- Market Capitalization – Rs. 6,938 Cr
- Share Price – Rs. 269 (Face Value: Re. 1)
- 52 Week High/Low – Rs. 290 / Rs. 76
- P/E Ratio – 130
- Book Value per Share – Rs. 38.2
- Dividend Yield – 0.27%
- ROCE – 6.13%
- ROE – 3.61%
- Debt/Equity Ratio – 0.35
- OPM % – 10.6%
- NPM % – 2.2%
Genus Power has delivered steady top-line growth in recent years. Its 3-year revenue CAGR is 10.4%.
The company’s return ratios indicate it has scope to improve capital efficiency. The low dividend payout and high PE multiple reflect high reinvestment rates for expansion.
Overall, Genus Power has a healthy balance sheet but needs to focus on augmenting margins and returns going forward.
Genus Power Company Overview
Incorporation: 1992
Founders: Jitendra Aggarwal and Rajendra Kumar Aggarwal
Headquarters: Jaipur, Rajasthan
Manufacturing Facilities:
- Chopanki (Rajasthan)
- Haridwar (Uttarakhand)
- Sonepat (Haryana)
Product Portfolio:
- Electricity Meters
- Inverters & UPS Systems
- Batteries
- Solar Products
- Power Electronics Equipment
End-User Segments:
- Residential
- Commercial
- Industrial
- Utility
Genus Power serves a diverse customer base across industry verticals. Over 50% of its revenue comes from state electricity boards and private utilities.
Business Model of Genus Power
1. Manufacturing: Genus Power owns and operates 3 manufacturing plants in India with a combined capacity of over 10 million units per annum. The facilities manufacture the entire range of products offered by the company.
2. Product Innovation: Genus Power has an in-house R&D team that continually develops new products and solutions aligned to emerging customer needs and grid modernization plans. Some latest offerings include smart meters, solar micro-inverters, lithium-ion batteries for EVs and renewable energy storage systems.
3. Multi-Channel Sales Network: The company sells its products through over 5000 channel partners across India besides direct sales to large B2B customers. The dealer network ensures widespread market reach.
4. After-Sales Service: Genus Power has over 100 service centres to provide installation, maintenance and repair support for its products – especially inverters and batteries which require periodic servicing.
5. Focus on Renewable Energy: In sync with India’s green energy push, Genus Power is aligning its product portfolio towards solar power solutions, energy storage technology and EV ecosystems which represent strong growth runways.
Genus Power Shareholding Pattern
The promoter and promoter group own 50.42% equity shares in Genus Power Infrastructures Ltd. Public shareholders account for 41.56% ownership. Breakdown of the shareholding pattern:
- Promoters – 50.42%
- Public – 41.56%
- Mutual Funds – 5.04%
- FIIs – 2.67%
- Others – 0.3%
Promoter holding is concentrated among the 3 founders – Jitendra Agarwal, Rajendra Agarwal and their family members. Public shareholding is fairly diversified among retail and institutional investors.
Genus Power Share Price Target 2023
Genus Power share price set a new all-time high of Rs. 290 in August 2023 after the company bagged an Rs. 1200 crore equipment supply order from NTPC Ltd.
For 2023, our Genus Power share price targets are:
- 1st Target: Rs. 275
- 2nd Target: Rs. 320
In the past 1 year, the stock has charted stellar returns of 221%. We expect the uptrend to continue in 2023 driven by strong revenue visibility, market share gains and margin expansion.
Genus Power Share Price Target 2024
Key Growth Drivers:
- Large smart metering orders
- Gaining export market share
- Expanding distribution network
- New product launches
2024 Price Targets:
- 1st Target: Rs. 335
- 2nd Target: Rs. 420
We estimate a 22% year-on-year rise in profits on the back of 35% revenue growth. The past 5-year EPS CAGR of Genus Power stands at 25.6% and the stock’s valuations remain attractive despite the sharp run-up.
Genus Power Share Price Target 2025
2025 Targets:
- 1st Target: Rs. 445
- 2nd Target: Rs. 520
Genus Power aims to scale up its presence in India’s fast-expanding renewable energy market through solar micro-inverters, lithium-ion batteries and EV charging infrastructure.
The company is also working to establish its products and services in overseas markets which will aid growth over the mid-term horizon. We expect profit growth to remain healthy in the 25% range over the next 3 years led by operating leverage benefits.
Genus Power Share Price Target 2026
Growth Strategies:
- Expanding distribution and service network
- Increasing manufacturing capacity
- Investment in smarter grid infrastructure
2026 Price Targets:
- 1st Target: Rs. 545
- 2nd Target: Rs. 630
Tie-ups with state discounts for advanced metering infrastructure and renewable energy projects provide multi-year revenue visibility. Genus’ strengthening balance sheet also supports the potential for value-accretive acquisitions in related fields.
Genus Power Share Price Target 2027
In line with its long-term plans, Genus Power will be directing sizeable investments towards upgrading and digitizing power T&D infrastructure over the coming years. This includes areas such as grid modernization, distributed energy resources and electric vehicle charging systems.
Accordingly, we expect strong double-digit growth to be sustained over the next 5 years, enabling Genus Power to cross annual revenues of Rs. 5000 crore by FY2027.
2027 Price Targets:
- 1st Target: Rs. 665
- 2nd Target: Rs. 726
Genus Power Share Price Target 2028
International Expansion Plans:
- Targeting Africa and Middle East markets
- Leveraging India’s credibility in low-cost innovation
- Tapping export incentives
2027 Price Targets:
- 1st Target: Rs. 740
- 2nd Target: Rs. 850
Robust domestic growth coupled with early traction in exports will bolster profitability and add momentum to Genus Power’s share price run over the next 5 years.
Genus Power Share Price Target 2029
Genus Power has scaled up investment in R&D and technology innovation over the past 3 years – directed towards electric mobility ecosystems, microgrids, energy storage solutions and smart power infrastructure.
These strategic initiatives have expanded Genus’ total addressable market and opened up new high-growth product lines and revenue streams beyond the company’s traditional offerings.
2029 Price Targets:
- 1st Price Target: Rs. 860
- 2nd Price Target: Rs. 980
The directional shift in the business mix is positive for long-term growth and profitability. We anticipate 25-30% bottom-line growth over the next 6 years on the back of operating leverage and margin expansion.
Genus Power Share Price Target 2030
By 2030, we forecast Genus Power to command over 15% market share in India’s fast-growing smart metering and renewable energy solutions space.
Rising urbanization and government electrification schemes will be key demand drivers while exports will emerge as the company’s second engine for growth this decade.
Healthy cashflows support capacity enhancement investments and strategic buyouts to consolidate market leadership.
2030 Price Targets:
- 1st Target: Rs. 990
- 2nd Target: Rs. 1070
Historical Dividends of Genus Power Share
| Fincal Year | Fiscal Year |
|---|---|
| 2022 | Rs. 0.25 |
| 2021 | Rs. 0.50 |
| 2020 | Rs. 0.10 |
| 2019 | Rs. 0.58 |
Genus Power has maintained a modest dividend payout ratio given high investments towards capacity expansion and forward integration over the last 5 years.
We expect dividend payouts to improve gradually once the investment cycle peaks out. The company has the potential to reward shareholders more substantially in the coming years.
Conclusion
In summary, Genus Power enjoys a leadership position in India’s power electronics market. It is well-placed to capitalize on favourable industry dynamics given its manufacturing competitiveness, distribution reach and R&D capabilities.
Strong earnings growth of 20-25% is likely over the next 3-5 years underpinned by supply-side drivers – government electrification & smart metering programs as well as demand-side tailwinds – rising household incomes and clean energy adoption. These catalysts reinforce our conviction in the company and optimistic view on Genus Power’s share price growth in line with fundamental prospects.
Frequently Asked Questions (FAQs)
What is the 1-year target price for Genus Power shares?
Our 1-year target price for Genus Power stock is Rs. 320. This target is based on the company’s growth opportunities in smart power solutions, financial performance and peer comparison.
What is the forecasted 5-year revenue for Genus Power?
We estimate Genus Power to deliver annual revenues of approximately Rs. 5000 crore by Fiscal 2027 – reflecting a healthy compound growth of 25% over the next 5 years.
Does Genus Power pay dividends?
Genus Power has consistently paid out dividends over the past 5 years. However, the dividend payout ratio is around 10-15% as surplus cashflows are reinvested for business expansion.
Where are Genus Power’s manufacturing plants located?
Genus Power owns and operates 3 manufacturing facilities located at Chopanki (Rajasthan), Haridwar (Uttarakhand) and Sonepat (Haryana). Combined production capacity stands at over 10 million units per year.
What new products is Genus Power working on?
Genus Power is aligning itself with emerging trends through offerings such as EV charging devices, lithium-ion batteries, rooftop solar systems, intelligent energy meters and microgrids. These new product lines cater to renewable energy integration and smart infrastructure – positioning the company for sustained long-term growth.