Shares of Skipper Ltd hit a 52-week high amidst a rally after the rights issue announcement

The Indian frontline indices struggled in the early trades of the session but managed to climb higher thanks to significant gains in the capital goods, real estate, telecommunications and auto sectors. The only losing sectors were BSE FMCG and BSE IT.

Broader indices outperformed the main indices by a wide margin. While Jaiprakash Associates Ltd and RailTel Corporation of India Ltd emerged as the top gainers from the BSE Smallcap pack, Skipper Ltd continues to draw investors due to its uninterrupted uptrend.

On an intraday basis on Monday, shares of Skipper Ltd climbed more than 13%, reaching a new 52-week high of Rs 219.20 per share on the BSE. In a span of only one month, shares have soared around 20%, culminating in remarkable gains of more than 260% in the past year!

Shares of the company have experienced a significant surge following the announcement of a strong quarterly performance. Taking into account the company’s quarterly performance, it reported robust growth of 33.28% from Rs 416.09 crore registered in Q1FY23, recording a total revenue of Rs 554.58 crore in Q1FY24. It has reported strong operating profit growth of 66.54%. The net profit for the first quarter of FY24 soared by leaps and bounds from a loss of Rs 0.65 crore to Rs 16.25 crore as compared to the same quarter the previous year.

Additionally, the company has granted approval for a rights issue, sanctioning the issuance of equity shares with a value of up to Rs 200 crore to eligible equity shareholders.

Skipper Ltd, established in 1981, is one of the top companies in the power transmission & distribution and polymer segments. Its global footprint encompasses multiple continents and it operates in more than 50 countries, with a presence in sub-segments such as towers, EPC, monopoles, poles, and railway electrification structures.

Keep a close eye on this stock for the upcoming sessions!

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.