Genus Power has target of Rs 300: V Sethi

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Vikas Sethi See what other Experts & Brokerages are saying about Genus Power See messages about Genus Power Genus Power BSE | NSE 13/02/12 Are Mutual Funds betting on Genus Power?

Vikas Sethi , MD of Sethi Finmart is of the view that Genus Power has target of Rs 300.

Sethi told CNBC-TV18, "Genus Power Infrastructures is a midsized company, it is leading manufacturers of electronic electricity meters, which help electricity distribution utilities to reduce and control theft and improves their revenue recovery. The company has a strong orderbook of around Rs 700 crore which is equivalent to 1.5 times their last year's turnover and the company has also participated in tenders worth more than Rs 6,300 crore out of which they are already L1 meaning the lowest bidder in tenders worth more than Rs 1400 crore."

He further added, "Valuation wise, at the current market price of around Rs 100 the stock is available at 2.5 times current year's estimated earnings of around Rs 40 per share, in other words this is the company with a turnover of Rs 500 crore, annual profit of Rs 51 crore and a market cap of just Rs 150 crore, which would mean the company will be able to earn its entire market cap in the next 2.5 to 3 years and also government's thrust on 100% electronic metering and excessive expansion in power generation capacity would enable this company to grow significantly in future. The stock is extremely attractive in the current levels and my target for the stock would be Rs 300 in about a year's time."

Disclosure: analyst doesn't hold the stock but have recommended it to the clients.