Dark horse stock of the day: Skipper Ltd jumps 20% in a falling market

Shares of Skipper Limited witnessed a significant surge today. The stock commenced trading at Rs 175, marking a 3.5% increase compared to the previous day’s closing price of Rs 169.15. Throughout the intraday session, the stock exhibited a remarkable 20% surge accompanied by significant trading volume. 

Upon scrutinising today’s share volumes, it becomes apparent that there has been a substantial increase of over 1.5 times in trading volumes compared to its average volumes on the BSE. As of writing this article the shares of the company are up by Rs 33.80 which is 19.98% and are trading at Rs 202.95 each on the BSE.  

The stock’s 52-week high and low are Rs 204 and Rs 54.95, respectively. Possessing a market capitalization of Rs 2084 crore, the stock has showcased outstanding performance in recent periods, yielding a remarkable 61% return in the last three months and an impressive 388% return in the past three years.  

Financial Performance    

In the June quarter of FY24, the Company’s revenue from operations experienced a substantial increase of 33% YoY, going from Rs 416 crore to Rs 555 crore. The operating profit of the company grew from Rs 36 crore to Rs 60 crore and on a sequential basis it declined from Rs 21 crore to Rs 14 crore, the operating profit stood at 11%.    

Whereas the net profit of the company amounts to Rs 14 crore, the net profit margins stood at 3% in FY23.    

The company’s return on capital employed (ROCE) and return on equity (ROE) are at 11.8% and 4.35%, respectively. The Book value of the company is Rs 75, whereas the price-to-earnings ratio is 44.8 times.   

Business Overview

Skipper Limited operates as an integrated manufacturing company focused on transmission and distribution structures. Their offerings encompass angle rolling, tower construction, accessories, and fastener manufacturing, as well as engineering, procurement, and construction (EPC) services for line construction. The company’s operations are divided into three main segments which are Engineering Products, Infrastructure Projects, and Polymer Products. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.