Skipper shares zoom 16% after Axis Securities initiates coverage with Rs 600 target
Skipper Ltd Share Price: Skipper Ltd shares soared to an all-time high on Monday, September 23, after Axis Securities initiated coverage on the smallcap stock with a buy rating and a target price that suggested an upside to the tune of 44 per cent. Read on to learn more about how analysts view Skipper Ltd shares.
Smallcap Stock Hits All-Time High: Skipper Ltd (SKIPPER) shares surged to a record high on Monday after Axis Securities initiated coverage on the stock with a 'buy' rating and a target price of Rs 600. The stock of the Kolkata-headquartered transmission & distribution infrastructure manufacturer gained by as much as Rs 65.5, or 15.7 per cent, to Rs 483.1 apiece on BSE, surpassing an earlier peak of Rs 464.7 registered on August 26.
The brokerage's target implies an upside of almost 44 per cent from Friday's closing price.
At 12:30 pm, the Skipper Ltd stock was holding on firmly to the green with an intraday gain of 13.7 per cent at Rs 475.1 apiece on the bourse with huge volumes. As many as 1.7 lakh Skipper shares changed hands for the day so far as against a daily average of 39,000 recorded in the past two weeks, according to provisional exchange data.
Skipper Ltd is the country's largest and the world's only integrated transmission and distribution (T&D) player that is "uniquely positioned to capitalise on the rising demand in the sector", according to Axis Securities.
Axis Securities analysts suggest adding Skipper Ltd to the investment portfolio to capitalise on the upside potential in the country's evolving T&D landscape.
Skipper Ltd’s strong market positioning, growth trajectory, and operational efficiency present a compelling investment opportunity, they wrote in a report dated September 23.
The company has a healthy order book of Rs 5,844 crore across domestic, international, and non-T&D sectors, and a bidding pipeline of Rs 18,000 crore, out of which, Rs 11,500 crore pertains to international T&D orders, according to Axis Securities.
Axis Securities values Skipper Ltd at a price-to-earnings (PE) multiple of 22 times the FY27 earnings per share, citing strong sectoral tailwinds, capacity expansion plans, a robust order book, and improving margins. Read more on how Axis Securities views Skipper Ltd
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