Rs 26 to Rs 196 in three years: This multibagger power stock is trading at record high; can it rally further?

Shares of Genus Power Infrastructures Ltd are trading at record highs after the he company's wholly owned subsidiary won a new order worth Rs 2,209.84 crore for deploying smart meters. After this order inflow, the company's total order book stands at over Rs 8,200 crore. 

Genus Power Infrastructures stock ended 5.48% higher at Rs 191.55 on Tuesday. It hit a record high of Rs 195.75, rising 7.79% in the previous session. The power sector stock has delivered 642% returns in the last three years. Genus Power Infrastructures shares, which closed at Rs 25.8 on August 7, 2020 rose to a high of Rs 195.75 on BSE in the previous session.  

ALSO READ: Rs 302 to Rs 3,660: This power stock turned into a multibagger in three years; likely to hit Rs 7,000 in a year  

Genus Power shares have gained 126.28% this year and risen 161.68% during the last one year.   

A total of 4.31 lakh shares of the firm changed hands, amounting to a turnover of Rs 8.22 crore on BSE. The market cap of the company climbed to Rs 4,935 crore on BSE. The stock hit a 52-week low of Rs 72.55 on August 8, 2022.      

ALSO READ: Rs 50 to Rs 235: This Tata group stock turned into a multibagger in three years; buy, sell or hold?  

In terms of technicals, the relative strength index (RSI) of Genus Power stands at 67.8, signaling it's trading neither in the overbought nor in the oversold zone. Genus Power stock has a one-year beta of 1.3, indicating very high volatility during the period. The stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.   

ALSO READ: Vedanta shares hit 52-week low for second session post stake sale by promoter entity

 Abhijeet from Tips2trades said,"Genus Power is bullish on the daily charts with immediate resistance at  Rs 195. A daily close above this resistance could lead to a target of  Rs 209 in the near term. Support will be at Rs 180.6."

Gaurav Bissa, VP, InCred Equities said, "Genus Power Infra has witnessed a very strong and sharp upmove in the last few weeks. The stock had earlier given a multiyear breakout with strong volumes which paved the way for a strong upside. The stock is currently witnessing a bullish flag breakout on daily charts which is a continuation pattern. The stock has seen incremental volumes in the last couple of days which implies market participants continue to remain bullish in the stock. The bullish flag breakout can push the stock towards Rs 215/220 levels. Investors are advised to hold the stock and ride the trend for the next few weeks." 

Its wholly owned subsidiary received a letter of award (LOA) for the appointment of Advanced Metering Infrastructure Service Provider (AMISP), the company said in a filing to the stock exchanges. 

The scope of the work includes the design of an advanced metering infrastructure system with supply, installation, and commissioning of 21.77 lakh smart prepaid meters, on a design, build, finance, own, operate, and transfer basis under the 'revamped distribution sector scheme'. 

The leading electric meter manufacturer expects a robust surge in order volumes during the forthcoming quarters of fiscal year 2024 as several State Electricity Boards (SEBs) have initiated the process of inviting bids for the deployment of smart meters. 

ALSO READ: Zomato shares hit 18-month high; reclaim Rs 100 mark; what’s next?

The power firm will report its June quarter earnings on  August 10, 2023. 

Genus Power reported a 10.19% fall in revenue to Rs 180 crore in the March 2023 quarter against a revenue of Rs 200 crore in the corresponding quarter a year ago.   It incurred a loss of Rs 11.2 crore  in the March 2023 quarter against a profit of Rs 21.36 crore in the fourth quarter of the previous fiscal.   

For FY23, net profit climbed to Rs 35 crore against Rs 21.8 crore profit in FY22. Revenue from operations surged to Rs 826.8 crore in the last fiscal against Rs 711.9 crore for the fiscal ended March 2022.    

Genus Power is primarily engaged in manufacturing/providing metering and metering solutions and undertaking engineering, construction and contracts on a turnkey basis. The company operates through two segments: Metering business and Strategic investment activity. etc.