Skipper Limited’s Shares Surge Following Positive Brokerage Recommendation
On September 23, shares of Skipper Limited showcased an impressive surge, climbing by up to 16% during trading hours. Currently priced at Rs 475.75, this represents a notable increase of 13.91% on the Bombay Stock Exchange (BSE). The stock achieved an intraday high of Rs 483.10, marking its 52-week peak. The uptick can be attributed to Axis Securities initiating coverage on the company with a ‘Buy’ rating, which fueled significant buying activity in the stock. As a result of today’s gains, Skipper’s market capitalization skyrocketed to Rs 5,373 crore.
Target Price Projection for Skipper Shares
Axis Securities has set an ambitious target price of Rs 600 per share for Skipper Limited, anticipating a robust growth trajectory for the company. This target implies a potential increase of 44% from the last closing price of Rs 418. Notably, Skipper’s shares have delivered an extraordinary 105% return year-to-date, showcasing the stock’s strong performance in the market.
Why Are Analysts Optimistic About Skipper?
Analysts from Axis Securities express bullish sentiments regarding Skipper, identifying it as India’s largest fully integrated transmission and distribution (T&D) company. Skipper stands out in the industry due to its comprehensive capabilities, including structure rolling, manufacturing, tower load testing, and executing transmission line EPC (Engineering, Procurement, and Construction) projects. This extensive expertise enables Skipper to undertake high-voltage power transmission projects, thereby offering it a competitive advantage over its peers.
Global Presence and Market Expansion
Skipper has established a significant international footprint, exporting to more than 60 countries, with a strong focus on markets in Asia Pacific, the Middle East, and Latin America. Furthermore, the company is actively pursuing entry into developed markets such as the United States, Canada, and Europe, which are anticipated to open additional growth avenues.
Focus on Enhancing Operational Efficiency
Equipped with India’s largest engineering capacity of 300,000 tonnes, Skipper is currently operating at 90% utilization, a notable increase from 70% in FY24. To align with soaring demand, the company is planning a capacity expansion of 25%, adding another 75,000 tonnes by Q1 FY26, with an additional 75,000 tonnes slated for FY26. The anticipated additional capacity is projected to generate revenues ranging from Rs 800 to 1,000 crore during FY26. Management has set a strong growth target, projecting a 25% compound annual growth rate (CAGR) in revenue over the next three years.
Conclusion
The recent surge in Skipper Limited’s stock price is reflective of positive analyst sentiment and the company’s strategic growth initiatives. With a firm commitment to expanding its operational capabilities and exploring new market opportunities, Skipper is well-positioned to drive sustainable growth and enhance shareholder value in the coming years.
(Disclaimer: The views and opinions expressed in this article are those of the experts and brokerage firms. Readers are advised to consult certified professionals before making any investment decisions.)
