Is Now The Time To Look At Buying Genus Power Infrastructures Limited (NSE:GENUSPOWER)?

Genus Power Infrastructures Limited (NSE:GENUSPOWER), is not the largest company out there, but it received a lot of attention from a substantial price increase on the NSEI over the last few months. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Genus Power Infrastructures’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Genus Power Infrastructures

What's The Opportunity In Genus Power Infrastructures?

Great news for investors – Genus Power Infrastructures is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is ₹394.73, but it is currently trading at ₹240 on the share market, meaning that there is still an opportunity to buy now. However, given that Genus Power Infrastructures’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Genus Power Infrastructures look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Genus Power Infrastructures' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since GENUSPOWER is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on GENUSPOWER for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GENUSPOWER. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

If you'd like to know more about Genus Power Infrastructures as a business, it's important to be aware of any risks it's facing. For instance, we've identified 2 warning signs for Genus Power Infrastructures (1 makes us a bit uncomfortable) you should be familiar with.

If you are no longer interested in Genus Power Infrastructures, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.