Skipper Ltd shares witnessed a sharp surge of over 15% on October 8 after Nuvama Institutional Equities initiated coverage with a "buy" rating and a target price of ₹ 650 per share. This target represents a substantial 46% upside from the previous closing price. Investors looking to buy shares online may want to keep an eye on Skipper's potential growth, especially given the favourable market conditions in the transmission and distribution (T&D) sector.
Favourable market trends drive Skipper's growth
The significant rise in Skipper's stock price is driven by its strong positioning within the transmission and distribution ecosystem. Nuvama's analysts highlighted that the National Electricity Policy (NEP) aims to inject a massive ₹ 9.2 lakh crore into transmission capital expenditure from FY22 to FY32. This, along with the global shift toward renewable energy, presents immense opportunities for Skipper, making it an appealing option for investors who are planning to buy shares online.
Skipper is also well-placed to benefit from increased domestic and export order intakes. The company's focus on high-voltage transmission projects aligns with the growing demand for energy infrastructure upgrades, making it a top contender in the T&D space.
Strong financial outlook
Skipper's financial outlook further strengthens its appeal. The company is expected to improve its operating profit margin (OPM) from 9.7% in FY24 to 10.5% by FY27, with a long-term target of 11%. This upward trajectory, combined with its robust stock performance—up 119% year-to-date—makes it an attractive opportunity for those wanting to buy shares online.
At 1:25 pm on October 8, Skipper's shares were trading at ₹505, marking a 14% increase for the day. Over the last 12 months, the stock has skyrocketed over 130%, more than doubling investor returns.
Key takeaways
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