Genus Power Hits 5% Lower Circuit as Enforcement Directorate Conducts Search
Search Operations
Genus Power's stock hit a 5% lower circuit at Rs 449 per share on December 5, following search operations by the Enforcement Directorate at the company’s corporate office and Chairman's residence.
Business Unaffected
Despite the search, the company reassured investors that its business operations remain unaffected and continue as usual.
Management's Response
Genus Power management stated that they fully cooperated with the Enforcement Directorate and promptly provided all requested clarifications and details.
Strong Stock Performance
The company’s stock had surged nearly 90% this year, outperforming the benchmark Nifty 50, which rose 12%. Its shares hit a 52-week high of Rs 485 on December 3.
Positive Financials
In Q2, Genus Power reported a multi-fold YoY jump in net profit to Rs 58 crore and a 93% increase in total income, reaching Rs 518 crore.
Rising Operational Costs
While income surged, operational expenses also increased by 57% YoY, indicating rising costs amid the company's expanding business.
Credit Rating
Genus Power recently received a "stable" rating for its long-term bank loan facilities from CRISIL Ratings.
Genus Power Overview
Genus Power specializes in manufacturing energy meters, power distribution systems, and smart grid technologies, contributing significantly to the energy sector.
Conclusion
Despite the ED search, Genus Power’s business outlook remains strong, and its stock has been a major performer this year.