Top Conviction Ideas : Buy Skipper Ltd for Target Rs. 570 - Axis Securities Ltd
.jpg)
* Strong Order Book: Skipper received new orders worth Rs 1,977 Cr in Q1FY26, which included three 756V transmission line projects from PGCIL in the states of Rajasthan and Andhra Pradesh. As of Jun’25, the order book stood at its highest ever at Rs 8,520 Cr. The order book comprises 76% domestic T&D orders, 14% nonT&D orders (including Telecom, Railways, Solar, Water EPC, and other Steel Structural items), and 10% export orders. All export orders pertain to T&D. The company currently has a strong bid pipeline of more than Rs 30,000 Cr (20-25% historical order conversion success rate). The management expects the company to receive order inflows of Rs 6,500-7,000 Cr from its order book based on its historical success rate.
* Capacity Expansion to Capitalise on the Strong Tailwinds: The company had achieved a close to full capacity utilisation in FY25, and capacity expansion remains critical. In Q1FY26, it has installed and operationalised its 1st plan of 75 kt, in line with the guidance, and reached a capacity of 375 kt. This plant is expected to reach optimum capacity utilisation by Q2FY26. The 2nd 75 kt capacity is also expected to go online by the end of FY26. Further, it has now target to increase its capacity to 600 kt by FY28 with a mix of brownfield and greenfield expansion.
* Export Opportunities: Exports stood at 10% of the company’s order book as of Jun’25. In Q1FY26, 30% of the engineering revenue and 20% of total revenue were from exports. It has secured a tower testing and design order of Rs 25 Cr from the Middle-East’s largest Utility–Saudi Electricity Company. It is also participating in a wide range of high-value tenders across African, Middle-Eastern and Latin American Markets. The company targets to double its export order inflow in FY26 to Rs 1,500 to 1,600 Cr (from Rs 700 to 800 Cr in FY25). The capacity expansion will also allow Skipper to target fast-track export orders with short-term demand cycles. Further, due to its strong backwards integration, it is also able to compete with Chinese companies.
For More Axis Securities Disclaimer https://simplehai.axisdirect.in/disclaimer-home
SEBI Registration number is INZ000161633
