Shares of Skipper Ltd hit their record high on Monday after Axis Securities initiated coverage on the stock with a 'Buy' call. It assigned a price target of Rs 600 per share, a 44% upside to the current market price of the multibagger stock. Skipper stock climbed 15.67% to Rs 483.10 against the previous close of Rs 417.65 on BSE. Total 1.96 lakh shares changed hands amounting to a turnover of Rs 8.99 crore on BSE. Market cap of the firm rose to Rs 5,305 crore. The stock fell to a 52-week low of Rs 197.35 on October 25, 2023.
The stock has gained 104% in 2024 and risen 122% in a year. It climbed 570% in two years and zoomed 781% in five years.
In terms of technicals, the relative strength index (RSI) of Skipper stands at 50.8, signaling it's trading neither in the overbought nor in the oversold territory. The stock has a beta of 1.6, indicating very high volatility in a year.
Skipper shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
Axis Securities said, "As India's largest and the world's only integrated Transmission & Distribution (T&D) player, Skipper is uniquely positioned to capitalize on the rising demand in the sector."
"The brokerage currently has 10%-15% market share in high-voltage transmission lines. Skipper is also a leading brand in the polymer sector in India (pipes and fittings) with a capacity of 62,000 MTPA. It also manufactures telecom towers and railway structures. The company operates through three segments - Engineering (68% of FY24 Revenue), Infrastructure (18%) and Polymer (14%). National Electricity Plan (NEP) has projected a total Capex of Rs 4.75 trillion crore during the period 2022-27 for laying out an additional transmission system (of 220 kV+) in the country to meet the rising power demand as well as to evacuate power from the growing RE capacity. Skipper is well-positioned to cater to this growing T&D investment. To cater to the soaring T&D infrastructure demand, Skipper targets to double its capacity from the current 3 lakh tonnes to 6 lakh tonnes over the next 4-5 years with a total capex of Rs 800 cr," said the brokerage.
Skipper Limited is one of the leading companies in the power transmission & distribution and the polymer segment. Skipper differentiates its offerings with high quality but cost-effective solution for infrastructure providers and telecom operators. Its international footprint spans across continents such as Latin America, Europe, and Africa and is spread across 40 plus countries with presence across sub-segments such as Power Transmission & Telecom Towers and Poles , EPC, Monopoles, and Railway Electrification Structures.