Kotak Securities is bullish on Genus Power Infrastructure has recommended buy rating on the stock with a target price of Rs 40 in its research report dated October 25, 2018.
Kotak Securities' research report on Genus Power Infrastructure
Genus reported good numbers on the operational front and reported profits in line with estimates.Outlook on EBITDA margins remains positive. Further, strong order book makes us comfortable on growth in FY19-20. Strong revenue growth on the back of pick-up in execution. EBITDA margin expansion despite commodity price and currency fluctuation Order book has almost doubled to Rs14.0bn (net of GST) on a y-o-y basis. The Genus power stock has corrected sharply by 64% from its high of Rs86. The stock is trading at 11.6x and 10.4x FY19E and FY20E earnings respectively.
We value the stock at 15x FY20E and arrive at a price target of Rs 40 (Unchanged). Reiterate BUY due to reasonable valuations, healthy profit growth and adequate upside.
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