Target: ₹700
CMP: ₹548.85
Skipper, a global leader in manufacturing transmission & distribution (T&D) structures, and a trusted partner for critical infrastructure EPC projects, has secured new orders totaling ₹1,660 crore during the Q2-FY25 and H1‘FY25 YTD inflows of ₹2,425 crore. It now has its largest ever order book of ₹6,590 crore with 62 per cent domestic T&D orders, 23 per cent non-T&D orders (Telecom, Railways, Solar, Water EPC, and other Steel Structural items) and 15 per cent export orders.
It is expanding its engineering product capacity to 3.75 lakh mtpa (from 3 lakh mtpa in FY24) and tower testing capacity to cate to the increased demand for a total capex of ₹200 crore in FY25. Further, to cater to the soaring T&D infrastructure demand it plans to double its capacity to 6 lakh MTPA in the next 4-5 years with a total capex of ₹800 crore with annual capex guidance of nearly ₹200 crore for FY25.
We believe, Skipper is well positioned to capitalise its segmental tailwinds with widespread product portfolio and backward integration aiding their margins. Additionally the company has the opportunity to increase its T&D infrastructure order book with capex plans by GOI of ₹9.2 lakh crore NEP outlay during FY22–32 on High Voltage (<220Kv) adding to revenue growth along with expected improvement in margins targeting a 25 per cent revenue CAGR over the next 3 years.
