Dec 03, 2009, 04.27 PM | Source: CNBC-TV18
Genus Power Infrastructures has target of Rs 192, says Investment Advisor, SP Tulsian.
Tulsian told CNBC-TV18, "Genus Power has day target of Rs 192. This company is into electronic energy plus putting up transmission and distribution line. They are into the power distribution management projects also and all these products have a very good growth potential. On October 30 we had a fire in the plant of IOC and with plant of this company is adjacent to that, they also had a huge fire and suffered the production loss. But the news which has been coming that they seem to have got the claimed approved from the insurance company for the loss of the assets as well as loss of profits.”
He further added, “Earlier it was estimated that they may lose about 40% of their expected topline but that has made good to a great extent by their Haridwar plant. The losses in the topline may not be more than 15% which is now getting estimated. If I go by the revise estimation and taking the much loss coming in from the fire which has happened they should be able to post an EPS of Rs 25 for FY10, which is quite respectable plus tomorrow the board of the company is meeting to issue the preferential warrants to the promoter that also shows the confidence that okay they maybe requiring money for refurbishing the whole thing or going for the capacity expansion because sometimes management takes this as an opportunity to expand the capacity also with the refurbishing or resetting the whole thing.”
“My view is quite positive on the stock from a longer term perspective. If somebody can keep a 3 months view on the stock then it can easily cross Rs 220 but for the day I have taken it at Rs 192."