Shares of Genus Power are at a record high on Tuesday. The stock is locked in a 5% upper circuit after it won orders for smart meters worth Rs 3,115 crore. With this order win, the company has won orders worth nearly Rs 10,000 crore over the past three months.

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Genus Power's stock has also tripled so far in 2023, rising 222%. This is the best annual performance for the stock since 2007 when it had risen 255%. The stock has also given positive annual returns in the past four consecutive years.

Genus Power's shares began to rally in July after the company won an order worth Rs 2,207.5 crore for installation and commissioning of 27.69 lakh Smart Prepaid Meters. The company had back then anticipated strong order inflows for the financial year 2024.

Just a day after this order win, the company signed an agreement with an affiliate of Singapore sovereign wealth fund GIC at an initial commitment of $2 billion (Rs 16,000 crore approximately). The agreement was to set up a platform to fund smart metering projects.

In August, the company won another order worth Rs 2,209.8 crore for deploying smart meters. In the same month, another order worth Rs 2,247.3 crore fell into its kitty.

The current order pertains to the deployment of 34.79 lakh smart meters. With this, the company's total order book now stands at Rs 14,000 crore, out of which, orders worth Rs 10,000 crore have come only in the last three months.

The burgeoning demand for smart meters is being driven by the government's initiatives to improve the efficiency of the power sector. These initiatives include the Revamped Distribution Sector Scheme (RDSS), which aims to install 250 million smart meters in all households across the country.

"The structure of the power sector has changed materially over the last decade," said Harshvardhan Dole of IIFL. He also said that as a house, they are upbeat on the smart meters and that if the execution is good, money can be made for meter manufacturers and managers.

Shares of Genus Power are locked in a 5% upper circuit of Rs 273.70.

(Edited by : Amrita)

First Published:Oct 10, 2023 11:52 AM IST