Power My Portfolio Value Pick: Skipper Ltd

Incorporated in 1981, Limited is the Flagship company of the S.K. Bansal Group. Its Major Business in Transmission Towers & PoleSkipper s, Tubular Poles, Monopoles, PVC / CPVC Pipes & Fittings, Solar Structures.Skipper’s market reach spans across 30 countries around the globe from South America, Europe, Africa, the Middle East, South and Southeast Asia and Australia.

maryland online virtual casino Key Facts:

  • Largest manufacturer of Transmission & Distribution  structures in India and among top 10 globally.
  • Largest producer of Plastic Pipes & Fittings in West Bengal, the fastest growing and second largest in Eastern India.
  • 8 manufacturing plants located across India.
  • 75% of our manufacturing is carried out using Automated CNC lines
  • Technological tie-up with two of the world’s most renowned companies Sekisui of Japan for CPVC compound and Wavin Group of The Netherlands for advanced plumbing solutions.
  • Emerge among the top five PVC pipe makers of India.
  • The Company’s Polymer Product Segment has a manufacturing capacity of 51,000 MTPA.
  • T&D Segment has a manufacturing 230,000 MTPA in FY17.
  • Company has good consistent profit growth of 62.71% over 5 years
  • Order Intake of INR 432 cr in Q2 FY’18
  • Net Sales: INR 515.62 cr in Q2FY18 against INR 390.81 cr in the previous year quarter, up by 31.9%
  • Company has a good return on equity (ROE) track record: 3 Years ROE 28.60%
  • Clients from high-growth sectors such as Power Transmission, Telecommunication, infrastructure, irrigation and construction sectors.

see url Stock Outlook:

  • M-cap: INR 2723 cr
  • CMP: 266 INR (15th Dec 2017)
  • PE: 23.8
  • EPS: 11.17 INR
  • Book Value: 47.9 INR
  • Share capital is 10.23 cr of FV 1.
  • Promoter Share holding is 70.41%
  • FII/DII/FPI Share holding 10.09 %.

Why Skipper ?

  • Global T&D sector is projected to attract investment of over $1trillion over the next 5-6 years. And Skipper is One of the lowest cost producer of transmission tower in the world
  • The government thrust on water, irrigation, improving sanitation, urbanization, the pvc pipes and fittings market to grow at a much faster pace.
  • Recently commissioned Guwahati plant (unit 2)to cater nationwide Polymer fittings requirement.
  •  Company aims to double its polymer capacity to 100,000 MTPA
  • Entered in JV with Metzerplas, which is one of the largest and most specialized manufacturers of Drip Irrigation Solutions from Israel.
  • The Company’s newly built Guwahati plant having a capacity of 30,000 MT per annum for engineering products got approval from Power Grid Corporation of India Limited for supply of Galvanised Tower Structures/ Parts.
  • Govt’s  projects like  24/7 Power for All by 2019 , Ujjwal Discom Assurance Yojna, Housing For All will be key demand driver for company.
  • Skipper is the major beneficiary of Bharat Growth story.
  • In next 3-5 year stock can deliver 3x-5x returns.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

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