Skipper Limited’s stock price jumped over 8% today after Axis Securities initiated coverage with a ‘Buy’ rating and set a target price of ₹600 per share, representing a potential upside of 44% from the current market price (CMP). Skipper, recognized as India’s largest and the world’s only fully integrated Transmission & Distribution (T&D) player, is well-positioned to leverage the growing demand in the sector.
Axis Securities’ report highlighted several key drivers supporting the ‘Buy’ call, including Skipper’s strategic presence across the entire transmission chain, its 10%-15% market share in high-voltage transmission lines, and the company’s ability to benefit from the ₹4.75 trillion T&D Capex outlined in the National Electricity Plan.
Skipper’s strong order book of ₹5,844 crore and a robust bidding pipeline of ₹18,000 crore, including international T&D orders, provide solid revenue visibility. The company is also expanding its capacity by 25%, aiming to meet growing demand and generate additional revenue of ₹800-1,000 crore by FY26.
Additionally, Skipper’s management has forecast a 25% revenue CAGR over the next three years, bolstered by its presence in 60+ countries and entry into lucrative export markets like the US, Canada, and Europe. The company is also expected to expand its margins to 10.5%-11% in the coming years, driven by operating leverage and a favorable product mix.
Axis Securities assigned a P/E multiple of 22x on its FY27 EPS estimate, which underpins the target price of ₹600 per share. With Skipper’s capacity expansion, strong order book, and improving margins, the stock is expected to deliver significant upside for investors.
