Multibagger power stock rises 13%, hits record high on order win from Power Grid

Shares of Skipper Ltd hit their record high today after the firm said it won a new order of Rs 737 crore for design, supply and construction of new 765 kV transmission line project from Power Grid Corporation of India. Skipper is engaged in the manufacturing of power transmission & distribution structures.

The multibagger power stock rose 13.18% to a record high of Rs 400 today against the previous close of Rs 353.40 on BSE. Total 1.48 lakh shares of the firm changed hands amounting to a turnover of Rs 5.68 crore. Market cap of the firm rose to Rs 4,193.36 crore. The stock has gained 261% in a year and risen 61% this year.   The stock has a beta of 0.5, indicating low volatility in a year.

In terms of technicals, the relative strength index (RSI) of Skipper stands at 70.78, signaling it's trading in the overbought territory. Skipper shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The Skipper stock hit a 52-week low of Rs 85.29 on March 28, 2023.   

Sharan Bansal, Director, Skipper Limited said, "We are pleased to share our latest achievement in our power transmission and distribution business, reinforcing our optimistic stance on this sector. The steady stream of orders, from PGCIL, has notably strengthened our order book in India's Transmission and Distribution (T&D) domain. With a year-to-date order intake exceeding Rs 3,900 crore, these recent victories are poised to play a crucial role in propelling our anticipated growth trajectory in the times ahead."

The power transmission company reported an over two-fold rise in consolidated net profit at Rs 20.4 crore for the December 2023 quarter boosted by higher income. It reported a net profit of Rs 9.5 crore in October-December FY23. Total income climbed to Rs 803.8 crore in Q3 from Rs 446.0 crore a year ago. However, expenses rose to Rs 777.4 crore as against Rs 436.6 crore in the third quarter of last fiscal.

Skipper is engaged in the manufacturing and selling of transmission & distribution structures (towers & poles) being its engineering products segment and CPVC, UPVC, PVC, SWR Pipes& Fittings, being its polymer segment.

Also read: Stock recommendations by analyst for Feb 26: IRCTC, Indiabulls Housing and JSW Energy

Also read: Rain Industries shares crash 11% on Q3 loss; check details