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ICICI Securities
Genus Power (Buy)
Target: ₹117
CMP: ₹65.5
Genus Power Infrastructures (GPIL) is a leading smart meter solutions provider in India, with a total manufacturing capacity of 10 mn meters p.a. It is the largest listed smart electricity meter company in India and provides end-to-end services including set-up of Advanced Metering Infrastructure (AMI) and Facility Management Systems (FMS) post implementation.
With over 25 per cent Pan-India market share in meters, GPIL is set to become one of the largest beneficiaries of upcoming smart meter installation drive under the ₹3 lakh crore revamped distribution sector scheme (of which 50 per cent is for smart meters).
The scheme targets installation of 100 million and 250 million prepaid smart meters by Dec 2023 and Mar 2025 respectively, replacing conventional meters and structurally transforming the financial dynamics of the power sector. With only 2.8 million smart meters installed as at Aug’21, we believe the opportunity size is huge though the pace of execution is key.
We initiate coverage with a Buy rating and target price of ₹117.
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