Fundamental & Technical analysis of Skipper Ltd - Grow More

 Skipper metzer india LLP:

Fundamentals:

 About company

Skipper Ltd is engaged in manufacturing and selling of Transmission & Distribution Structures and Pipes & Fittings. It also undertakes EPC projects in the infrastructure segment.

KEY POINTS

Market Leadership
Skipper is the market leader in the manufacture of T&D structures and distribution poles. It is positioned among the 10 largest global T&D structure manufacturers. It is India’s largest and world's only Integrated T&D company having its own Structure rolling, manufacturing, Tower Load Testing Station & Transmission Line EPC.

Product Portfolio
Engineering (74%) - Power Transmission Tower, Power Distribution Poles, Monopoles, Telecom Tower, Railway Structures, MS & High Tensile Angles, Solar Structures, Fasteners, and Tower Accessories.
Polymer (21%) - UPVC Pipes, CPVC Pipes, SWR Pipes, HDPE Pipes, CP & PTMT, Polymer Water Tanks, and Fittings.
Infrastructure (5%) - Transmission Line EPC, Railway Electrification EPC, and Underground Utility laying by HDD.

Geographical Split FY22
India - 77%
Outside India - 23%

Manufacturing Capacities
The Co. has 4 manufacturing facilities and a Transmission Line Testing Station in India. Segment wise capacity stands at:
Engineering Products - 300,000 MTPA
Polymer Products - 51,000 MTPA

Clients
The Co. caters to reputed companies such as Reliance Jio, Power Grid Corporation India Limited (PGCIL), Tata Projects among others. It has an extensive distribution network of 20,000 retailers in eastern India for its polymer segment.

Geographical Footprint
The Co. has Pan India market presence and also exports its product to several international geographies which includes Africa, Australia, Middle East, South & South East Asia, South America and Europe.

Order Book
The Co. had a strong order book of Rs 21,150 million, as on 31st March 2022 with a well-diversified mix of domestic (55%) and export business (45%).
During Q1 FY23, it secured a new order inflow of Rs 4,030 million and the share of Non T&D Products in overall order book has increased to 14%.

Ongoing Projects
The Co. is actively pursuing projects worth Rs 45,000 million on the international front and about Rs 55,000 million on the Domestic front.

Joint Venture
The Co. holds 50% partnership interest in “Skipper-Metzer India LLP” (SMIL) a Limited Liability Partnership engaged in the business of manufacturing drip irrigation systems.

Changes in KMP
Sri Arvind Joshi ceased to be the CFO of the Co., with effect from 10th May, 2021 upon resignation. Sri Sharan Bansal was appointed as the Interim CFO with effect from 9th November 2021. Further, the Board in its meeting dated 11th May, 2022 approved the appointment of Sri Sharan Bansal as CFO of the company.

Contingent Liabilities
The company has contingent liabilities worth Rs. 18 cr. mostly related to tax matters.
It has given Corporate Guarantee of Rs. 480 million to a Bank for arranging credit facility for its Joint Venture and has received a Bank Guarantee from its Joint Venture Partner for Rs. 178 million as collateral.

Future Outlook
The Co. is targeting Inflow of Rs. 22,000 - 25,000 million in FY23, largely on account of international export orders and rebound in Domestic T&D ordering. Additionally, it is intending to grow exports to 50% of engineering revenue in FY23 and to 75 % by FY24.

 

Technical Analysis of Skipper LTD

 

technical chart of Skipper ltd

As you can see in the above image we have done a technical analysis of skipper limited on the basis of price action on weekly time frame which shows us that stock has given a breakout of its important resistence level which is 98 as shown in image with a huge volume spike. If you also pay attenssion then you can see the chart pattern is kind of cup and handle so its also a good sign of massive rally. Till today stock is sustaining above the resistence level and taking support over it so we can go further long in this stock as per the given targets which are as follows.

Target 1 : 145

Target 2 : 203

Sl :65   

So these are the target and stop loss for this stock if you enter in this trader.

 

Disclaimer: Growmore didnt recomended buy or sell of any kind of stock. All the above information is educational purpose only. Kindly concern you adviser before making any investment.