Skipper, a leading player in the transmission and distribution (T&D) structures market, has been making significant strides in expanding its business and securing new orders. In the second quarter of FY25, the company announced new orders worth ₹1,660 crore, bringing the total inflows for the year to ₹2,425 crore. With its current order book standing at a record ₹6,590 crore, Skipper is well positioned to capitalize on the growing demand for T&D infrastructure projects both domestically and internationally.
One key area of focus for Skipper is expanding its manufacturing capacity to meet the increasing demand for its products. The company is in the process of increasing its engineering product capacity to 3.75 lakh mtpa and tower testing capacity to cater to the growing needs of the market. This expansion will require a total capex of ₹200 crore in FY25. Additionally, Skipper plans to double its capacity to 6 lakh MTPA in the next 4-5 years, with a total capex of ₹800 crore, further solidifying its position in the market.
The company’s strategic plans align well with the government’s focus on T&D infrastructure, as evidenced by the ₹9.2 lakh crore National Electricity Plan outlay for High Voltage (<220Kv) projects during FY22-32. This presents a significant opportunity for Skipper to further expand its order book and drive revenue growth. With a target of achieving a 25% revenue CAGR over the next 3 years, Skipper is poised for substantial growth in the coming years. In conclusion, Skipper's strong order book, expansion plans, and strategic positioning in the market make it an attractive investment opportunity. With a target price of ₹700 and a current market price of ₹548.85, investors may consider adding Skipper to their portfolio for long-term growth potential.
