Result Update: Genus Power Ltd - BUY - TP Rs.58 - Kotak

Genus reported good numbers on the operational front but missed our profit estimates partly due to forex loss of Rs 33 mn. Outlook on EBITDA margins remains positive as material cost pressure is easing off. Further, strong order book makes us comfortable on growth in FY19-20.

Key Highlights

- Strong revenue growth on the back of pick-up in execution.

- EBITDA margin lower due to commodity price pressures and forex loss, but the outlook is improving

- Robust order book of Rs 9.7 bn (net of GST) as compared to Rs 7.0 bn in Q1FY18.

Valuation and Outlook

- After the correction in stock price, valuations are reasonable at 17x and 14x FY19E and FY20E respectively. We reiterate BUY with a price target of Rs 58 based on 18x FY20E (prior price target of Rs 71, based on 20x FY20E).

Shares of GENUS POWER INFRASTRUCTURES LTD. was last trading in BSE at Rs.42.45 as compared to the previous close of Rs. 43.5. The total number of shares traded during the day was 103152 in over 682 trades.

The stock hit an intraday high of Rs. 45.4 and intraday low of 41.8. The net turnover during the day was Rs. 4503589.

Source : Equity Bulls

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