With a market capitalization of Rs. 4,205.78 crore, the shares of the company are on a higher note at Rs. 385.50 compared to their previous close of Rs. 353.40. During the trading session, the shares hit a high of Rs. 400, gaining around 5 percent, and closed the day at Rs. 353 apiece.
The shares of Skipper Ltd. have delivered a multibagger return of 281 percent to their shareholders in one year. For example, if someone had invested Rs. 1 lakh in these shares a year ago, then the worth of those shares would be Rs. 3.81 lakh now.
Here are the reasons why the shares of Skipper Ltd. gave a return of 54% on a YTD basis:
On February-1-2024, the government of India announced an allotment of Rs 11.11 crore to infrastructure in the upcoming financial year on account of the interim budget results. Before this announcement, shares of infrastructure companies were on the radar of investors. Skipper Ltd. was one of them. After the announcement, the rally further intensified.
According to the recent investor presentation, sales in the engineering segment of the company increased by 54 percent, from Rs 337 crore in Q3 FY23 to Rs 517.7 crore in Q3 FY24. Similarly, sales in the polymer segment increased by 11 percent from Rs 98 crore to Rs 108.6 crore in the same period.
Additionally, in the infra segment, it achieved a 1671 percent increase from Rs 9.9 crore to Rs 175.3 crore, attributed to projects from BSNL and other T&D project executions.
Furthermore, renewable energy and China plus one trend bolstered the engineering division, along with the polymer segment with the water infrastructure projects.
On a yearly basis, the revenue from operations of the company increased by 80 percent, from Rs 445 crore in Q3 FY23 to Rs 802 crore in Q3 FY24. Similarly, net profits increased by 171 percent, from Rs 7 crore to Rs 18 crore in the same period.
Sequentially, on a quarterly basis, the revenue from operations of the company increased by 4 percent, from Rs 772 crore in Q2 FY24 to Rs 802 crore in Q3 FY24. Similarly, the net profits decreased by 5 percent from Rs 19 crore to Rs 18 crore.
The company operates in three segments, including engineering, polymer, and infrastructure. The future outlook of the company also expects a 25 percent compound annual growth rate (CAGR) of revenue over the next three years.
As of the December quarter, the company has secured new orders worth Rs 402 crore, and the current closing order book stands at Rs 5,779 crore. Additionally, as of today, Skipper bags fresh new order worth Rs. 737 Crores from Power Grid Corporation of India Limited (PGCIL)
The company has a global presence in over 40 countries across South America, Europe, South Asia, Australia, and the Middle East. Internationally, the company has a bidding pipeline with active projects worth Rs 9,830 crore, and domestically, it has projects worth Rs 5,200 crore in the pipeline.
Skipper Ltd. is an Indian based company incorporated in 1981 and engaged in the business of manufacturing transmission and distribution structures. It is the third largest company in India in terms of the manufacturing capacity of power T&D structures.
Written By Praveen R
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