Rs 21,000 crore order book: This multibagger smart prepaid meters manufacturing company enters into SPA of Maharashtra Akola Amravati Smart Metering Pvt Ltd

The stock gave multibagger returns of 155 per cent in just 1 year; 440 per cent in 3 years and a whopping 1,420 per cent in 5 years.

Genus Power Infrastructures Ltd is expanding its presence in the power infrastructure and distribution sector by acquiring a stake in Maharashtra Akola Amravati Smart Metering Private Limited. This acquisition will be done through Genus Power Solutions Private Limited (GPSPL), a wholly-owned subsidiary of Genus.

The deal involves GPSPL purchasing 30,000 equity shares, representing a 30 per cent stake, in the Target Company for a cash consideration of Rs. 30,000 (Rs. 1 per share). Upon completion of this acquisition, the Target Company will become a wholly-owned subsidiary of GPSPL and ultimately a step-down subsidiary of Genus itself.

It's worth noting that the Target Company is a relatively new entity, incorporated in August 2023. As a result, it hasn't reported any revenue yet. This acquisition is classified as a related party transaction since the Target Company is already part of the Genus group. The main purpose behind this strategic move is to allow GPSPL to participate in the AMISP Project.

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About Genus Power Infrastructures Ltd

Genus Power Infrastructures Ltd. is a leading player in India's electricity metering solutions industry, with a market share of 27 per cent. The company is a market leader in various kinds of meters, including smart metering solutions. Genus also has an ECC division that complements its meters business. The company has a market cap of over Rs 10,000 crore.

According to Quarterly Results, the net sales increased by 108 per cent to Rs 420.12 crore in Q4FY24 compared to Rs 202.32 crore in Q4FY23. The company reported a turnaround net profit of Rs 29.42 crore in Q4FY24 compared to a net loss of Rs 11.41 crore in Q4FY23, an increase of 357 per cent. In its annual results, the net sales increased by 49 per cent to Rs 1,200.58 crore and net profit increased by 241 per cent to Rs 101.04 crore in FY24 over FY23.

The company’s total order book including all SPVs and GIC Platform now stands in excess of Rs 21,000 Crore (net of taxes) and these concessions are for 8-10 years. The stock’s 52-week high is Rs 367.75 and its 52-week low is Rs 150.15. The stock gave multibagger returns of 155 per cent in just 1 year; 440 per cent in 3 years and a whopping 1,420 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.