Genus Power (GENUSPOWER)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 33.59% indicates exceptional capital efficiency and a strong return on equity base.
• Sales growth of 85.76% and profit growth of 116.42% show powerful momentum in the latest year.
• PEG ratio of 0.14 suggests the stock is inexpensive relative to its near-term growth rate.
• Piotroski F-score of 7/9 points to generally sound financial health and operational improvement.
• Latest quarter sales of ₹1,122 Cr and net profit of ₹148 Cr reflect a solid recent operating scale.

Concerns

• P/B of 5.57 means investors are paying a heavy premium over book value, leaving little margin of safety.
• Debt-to-equity of 0.92 implies meaningful leverage, which could amplify losses during an economic or sector downturn.
• Promoter holding of 39.34% is moderate, not the high insider ownership that often signals strong alignment.
• Dividend yield of just 0.93% provides minimal income while waiting for growth to materialize.

AI Analysis

At first glance, Genus Power looks like a growth machine. Sales jumped 85.76% and profits soared 116.42%, while ROE stands at a remarkable 33.59%. A P/E of 14.45 on such a spurt is tempting, especially with a PEG of 0.14. But I must be careful. The book value is only ₹52.82, yet the stock trades at ₹294.30 – that is 5.57 times book. You are paying a hefty premium for that high return on equity. If the growth rate normalizes, the arithmetic gets less attractive. Debt-to-equity of 0.92 is not dangerous, but it is not a fortress balance sheet either. Promoter holding is 39.34%, workable but not a promoter who has bet the farm. The Piotroski F-score of 7/9 tells me the financial health is decent. But the FairStock score of 57/100, with a 'STEADY' outlook, reminds me that the market has not assigned this a runaway quality status. In an infrastructure-linked cyclical business, today's 116% profit growth can quickly vanish when orders slow. I would want to see whether the latest quarter – sales of ₹1,122 Cr and net profit of ₹148 Cr – is the new baseline or a peak. The dividend yield is insignificant at 0.93%, so you are not being paid to wait. A good business must also convert higher sales into sustainable free cash flow. I won't label it a moat-building stalwart from these numbers alone. It is a fast grower that deserves a watchlist – but only at a price that gives a margin of safety. At 5.57 times book, that margin is thin.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer