Buy Genus Power Infra; target of Rs 450: Emkay Global Financial

Emkay Global Financial's research report on Genus Power Infra

India's power distribution space is experiencing a significant transformation, driven by the advancement of smart grid technology. Smart meters continue to see gradual implementation, albeit at a slow pace. There are notable signs of improvement in key monitorables like AT&C losses, collection, and billing efficiencies. AT&C losses for power distribution companies (discoms) have been consistently decreasing, from 22.3% in FY21 to 17.6% in FY24. Among states, Bihar and Assam witnessed the highest number of meter installations. We expect awarding (muted in FY25) and implementation to see material pick up in FY26 and thereafter. In this space, we like Genus Power Infrastructure, given its large size, its end-to-end services offerings, including setting up advanced metering infrastructure (AMI) and facility management systems (FMS) after installation. With only 25mn (including other scheme) smart meters installed as of Apr-25, we believe the growth opportunity is sizable, while execution remains the key.

Outlook

We reiterate BUY on Genus Power Infrastructures and keep our SOTP-based TP of Rs 450. With >25% market share in meters pan-India, GPIL is set to become one of the largest beneficiaries of the ongoing smart meter installation drive under the Rs3trn revamped distribution sector scheme.