Shares of Skipper Limited rallied 16 percent to Rs 483 in the afternoon of September 23 after Axis Securities initiated coverage on the counter with a 'buy' on the counter and price target of Rs 600 per share as it sees robust growth prospects.
The domestic brokerage firm forecasts an upside potential of 44 percent from the last closing price of Rs 418 on the National Stock Exchange. Skipper shares have now rallied over 100 percent since the start of the year.
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Axis suggests that the company is India's largest and the world’s only fully integrated Transmission & Distribution (T&D) company, operating across the entire transmission chain. With in-house capabilities for Structure Rolling, Manufacturing, Tower Load Testing, and Transmission Line EPC, Skipper stands out from its competitors. Its expertise in executing high-voltage power transmission projects gives it a clear competitive advantage.
"The company has a strong international presence with exports to more than 60 countries and a strong foothold in Asia Pacific, Middle East, and Latin American regions. It is working on entering into developed markets such as the US, Canada and Europe which has the potential to generate lucrative contacts. Currently, it has little presence in the developed markets," analysts said in a note.
Skipper boasts the largest engineering capacity in India at 3,00,000 tonnes, currently operating at 90 percent utilisation, up from 70 percent in FY24. To meet growing demand, the company is expanding capacity by 25 percent, or 75,000 tonnes, by Q1FY26, with plans for a further 75,000-tonne increase in FY26.
The additional 75,000 tonnes by Q1FY26 is expected to generate Rs 800-1,000 crore in revenue for FY26. Management has issued strong guidance for a 25 percent revenue CAGR over the next three years, supported by an order book that is 2.1x the combined FY24 revenue of its Engineering and Infrastructure segments.
At about 1:45 pm, shares of the company were trading at Rs 474, higher by 13.5 percent from the previous close on the NSE.
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