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Genus Power shares downgraded by ICICI Securities after stock runs up 34% in a monthAs of March 2025, Genus Power’s order book stood at ₹30,100 crore, up 43% year-on-year. Of this, approximately ₹17,000 crore is estimated to be from the supply and installation of smart meters, providing strong revenue visibility over the next three to four years.By Meghna Sen   June 5, 2025, 1:54:46 PM IST (Published)2 Min ReadGiven the recent surge in the stock price of Genus Power Infrastructures Ltd., brokerage firm ICICI Securities has downgraded the stock rating from ‘Buy’ to ‘Add’. However, the brokerage has raised its price target to ₹440 per share from ₹376 per share earlier.

Following a strong third quarter of the financial year 2024-25 (Q3FY25), Genus Power reported an even more robust performance in the fourth quarter (Q4FY25). The company saw a jump in project execution and profitability during the second half of FY25.

In the second half, revenue beat the full-year revenue of FY24, and the earnings before interest, taxes, depreciation and amortisation (EBITDA) margin improved by 480 basis points compared to the first half of FY25.

As a result, the company’s revenue, EBITDA, and profit for FY25 rose by approximately 2 times, 3.5 times, and 4 times, respectively, compared to FY24. The EBITDA margin surged to 19.2%, marking a year-on-year increase of 790 basis points.

Genus Power has nearly achieved its revenue guidance of ₹2,500 crore for FY25 and exceeded its EBITDA margin guidance of 15–16%. The company has also revised its guidance for FY26, now expecting revenue growth of 65% (compared to the earlier estimate of 30-40%) and an EBITDA margin of 18% (compared to 15–16% previously).

As of March 2025, the company’s order book stood at ₹30,100 crore, up 43% year-on-year. Of this, approximately ₹17,000 crore is estimated to be from the supply and installation of smart meters, providing strong revenue visibility over the next three to four years.

It should be noted that several smart meter tenders are still pending finalisation. ICICI Securities expects healthy tendering activity for smart meters in FY26 and FY27.

The brokerage also said that Genus Power will ramp up execution in the coming quarters. The company is targeting the installation of 7-8 million smart meters in FY26, compared to 1.5 million installed in Q4FY25.

As a result, the brokerage expects strong new business opportunities in the smart meter segment during FY26 and FY27.

Genus Power shares are trading 1.10% higher on Thursday at ₹398.80. On a year-to-date basis, the stock has remained flat.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsGenus Powershare market today