Skipper Ltd. share price target

Skippers 4QFY17 results (adjusted for forex gains) were in line with our estimates. Revenue grew 7% YoY, led by 25% growth in the PVC business. As per the mgmt, PVC sales normalised starting Feb-17 (post demonet impact). EBITDA margin at 13.2% (-70bps YoY) was in line with our estimates, adjusted for a forex gain of Rs 164mn. APAT grew 12% YoY to Rs 404mn.

We expect Skipper to report PAT CAGR of ~16.7% over FY16-19E, with ROEs consistently over 20%. In contrast, valuations (12.6x FY19E EPS) look attractive, both on relative and absolute basis. Initiate coverage with a BUY and TP of Rs 220/share (15x FY19E EPS), implying 19% upside from current levels.

XX Capacity Expansion on Track: Work is going in full swing for the upcoming Greenfield manufacturing facility in Guwahati (Unit-II), which is expected to be commissioned by FY17E. The Company will manufacturer Engineering Products...

The company reported revenues of Rs.286 cr (Vs estimate of Rs.292 cr; up 21%), EBITDA of Rs.43 cr (Vs estimate of 47 cr; up 20%), and PAT of Rs.14 cr (Vs estimate of Rs.15.5 cr; up 37%) in 1QFY17. This miss versus our estimates was mainly on account of lower off-take in the PVC division due to a few key projects getting post-poned to Q2FY17. However,...

Skipper is a supplier of transmission towers to Power Grid and has one of the largest capacity of towers at 200K tonnes in a 15Lakh tonne industry. India will invite bids for INR1 Lakh worth of power transmission projects in FY17, of which Power Grid is expected to win a lions share of EPC contracts. In addition to EPC, PGCIL is also expected to bag orders on nomination and is also expected to work on the Green corridor at a cost of INR30000cr. Hence, it will be in a position to start inviting bids for spends worth ~INR100,000cr in FY17. All this bodes well for Skipper, who has 46% of the order book from PGCIL and expects to maintain this ratio.Motilal Oswal value Skipper at 15xFY18E and recommmend to BUY for a target of INR. 215 from a 1 year perspective.

Trendlyne has 1 report on Skipper updated in the last year from 1 broker with an average target of Rs 215.

Skipper Ltd is a Kolkata based, flagship company of S.K bansal Group. It is India's second largest transmission tower manufacturing company & tenth largest in the world, having production capacity of 200,000 MTPA. It is also one of the world's largest integrated transmission tower manufacturing companies with angle rolling, tower accessories & fastnerer manufacturing capacity & EPC line construction. Company is also engaged in production of PVC pipes business. Company has currently five manufacturing facilities for plastics pipes & fitting located across pan India with production capacity of 41,000 MTPA. Company currently has presence in two...

Skipper Limited, established in 1981, is one of the top 3 players in supply of transmission towers and producer of plastic pipes in India. It is also a trusted partner for executing critical infrastructure EPC projects. Skipper's market spans across 20 countries of the world. The company has 7 state-of-art construction manufacturing facilities...

manufactures PVC pipes for water transportation purpose. Skipper has three manufacturing facilities across India. Skipper supplies products majorly in Eastern & North Eastern India & currently strives to achieve a pan India presence. It also exports to regions like South America, Europe, Africa, Middle East, Asia as well as Australia....