Skipper's integrated manufacturing for transmission and distribution structures, largest capacity in towers and poles, strong domestic T&D capex visibility and expansion into developed geographies provide significant tailwinds, believes the brokerage.
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Systematix Report
Systematix initiates coverage on Skipper Ltd. with Buy call and sets a target price of Rs 490 based on 16x FY28E earnings.
Skipper's integrated manufacturing for transmission and distribution structures, largest capacity in towers and poles, strong domestic T&D capex visibility and expansion into developed geographies provide significant tailwinds.
The company's order book of Rs 88,000 crore (1.9x FY25 revenue) and a strong bidding pipeline provide a two-year visibility.
Systematix expects revenue/Ebitda/PAT CAGR of 20%/24%/34% over FY25–28E.
Key Risks
Competitive intensity in tender based business, raw material volatility (50% of orders in book are fixed price in nature), working capital intensity and geopolitical uncertainty are some of the major risks.
The brokerage factors in improved export mix which is also dependent on the company's ability to secure these orders in international geographies. If the company fails to secure these orders, that would be a downside risk to the brokerage's estimates.
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