Skipper is one of the world’s largest integrated transmission tower manufacturing companies, having a nameplate capacity of 200,000 MTPA.
The Company which enjoys 10-15% market share in India’s T&D structure market – also executes critical infrastructure EPC projects. Further, it plans to expand CPVC capacity from 41,000 TPA to 100,000 TPA.
Skipper continues to deliver a strong performance in its net revenue led by healthy performance in Engineering Products and Infra Projects segments.
Its outstanding order book stands at Rs26.4bn, which is 1.5x of FY17 revenue. Robust order book provides revenue visibility in T&D business, while expansion in PVC business would aid Skipper to sustain healthy earnings profile, going ahead.
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We expect Skipper’s Revenue & PAT to witness 15% & 24.6% CAGR, respectively over FY16-FY19E, while RoCE is seen at 22.9% by FY19E. we maintain our BUY recommendations and Target Price of Rs 254.
About Reliance Securities
Reliance Securities, the broking arm of Reliance Capital, is one of the India’s leading retail broking houses, providing customers with access to equities, derivatives, currency, IPOs, mutual funds, bonds, and corporate FDs amongst others. The large array of financial offerings helps customers fulfilling their investment objectives on one platform. Focus on timely & error-free execution represents its core strength. Their best in class research offerings, high degree of compliance with stock exchange regulations, ethical business standards, & strong risk management capabilities; Reliance Securities positions itself amongst strong & innovative brands in the financial services space.
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