Target: ₹490
CMP: ₹410.50
is India’s largest manufacturer of transmission line (TL) towers, with installed capacity of 3,75,000 mtpa as of Q2-FY26 end. Over the past two years, a sharp pick up in domestic TBCB (Tender Based Competitive Bidding) tenders has driven the company’s performance, while exports have been resilient.
With capacity now ramped up, we expect a surge in export order booking. Skipper is well positioned to benefit from the multi-year domestic T&D capex cycle, with ₹9.15 lakh crore of investments planned over FY23-32 (according to NEP). Skipper plans to nearly double its tower manufacturing capacity to 0.6mn TPA by FY29.
The company also intends to increase its export revenue share to about 50 per cent from 21 per cent in H1-FY26 over the next 3-4 years. With an order book of ₹8,800 crore as at Q2-FY26 end (1.9x FY25 revenue) and order inflow likely expanding at 22 per cent CAGR, we estimate revenue/EBTIDA/PAT of 20/24/34 per cent CAGR over FY25-28E.
Initiate coverage with Buy and TP of ₹490, based on 16x FY28E EPS.
Key Risk: Competitive intensity in tender based business, raw material volatility (50 per cent of orders in book are fixed price in nature), working capital intensity and geopolitical uncertainty are some of the major risks.