This smallcap stock is one of the world’s leading manufacturers of Power Transmission & Distribution structures and a prominent manufacturer of Telecom and Railway structures. The company’s strong order book stands at approximately 1.3 times or 25 percent higher than the market capitalization.
Stock Performance
With a market capitalization of Rs 5,065.78 crore, the shares of Skipper Ltd closed at Rs 440.60 per share on Thursday, marking a slight increase compared to its previous closing price of Rs 438.80 per share.
Company Overview
Skipper Limited is one of the world’s leading manufacturers of Power Transmission & Distribution structures and also a prominent manufacturer of Telecom and Railway structures. The company’s products are manufactured in three categories namely, Engineering, Infrastructure and Polymer segments.
Order Book Analysis
As of December 2024, the company’s order book stands at Rs. 6,354.08 crores. Geographically, about 89 percent of this comes from domestic markets and 11 percent is from exports.
Segment-wise, T&D Domestic accounts for 66 percent of the orders, Non T&D Domestic contributes 23 percent and Exports make up about 11 percent. The order inflow for the latest quarter alone stands at Rs 1,318.2 crores while the nine-month inflow stands at Rs 3,743 crores.
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Diverse Product Portfolio
The company manufactures its products under three main segments, namely, Engineering, Infrastructure and Polymer Segment:
- Engineering Segment: This includes the production of Power Transmission Towers, Railway Structures, Telecom Towers, Test Stations, and Monopoles, with a production capacity of 3 lakh MTPA as of H1FY25.
- Infrastructure Segment: This includes services such as Tower EPC, Telecom EPC, Water EPC, and Coatings.
- Polymer Segment: This includes the manufacture of a wide range of products such as PVC, HDPE, CPVC, UPVC, SWR pipes and fittings, water tanks, bath fittings, and other related items, with a production capacity of 62,000 MTPA as of H1FY25.
New Business Vertical
Recently, the company commenced the development of specialized capabilities in substation EPC fieldwork, complementing its established
expertise in power transmission lines. Skipper is now favorably positioned to secure its first major substation EPC contract, marking a significant milestone in its growth within the power transmission sector.
Financial Performance
When looking at the financial statements of the company, Skipper Ltd reported a 42 percent increase in revenue from Rs 802 crore to Rs 1,135 crore in Q3 FY24-25. This was accompanied by a strong 80 percent growth in net profits from Rs 20 crore to Rs 36 crore during the same period.
Written by Shwetha Sairam
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