One such multibagger power stock, which is showing its tremendous strength despite the decline in the market. Not only this, on the basis of strong fundamentals, domestic brokerage firm Nuvama Institutional Equities has expected a bumper rise in the stock.
Why bullish on stocks?
So the name of the company is Skipper Ltd. Is. Brokerage Nuvama Institutional Equities said in its note that Skipper Ltd. A completely different player in a position of strength is ready to perform powerfully. Nuvama says that through the National Electricity Policy (NEP), in which ₹ 9.2 lakh crore will be spent on capital expenditure on transmission from FY22 to FY32, the company will also be seen benefiting from it. Additionally, the global shift towards renewable energy (RE) and high voltage transmission and distribution (HV T&D) capital spending could be quite beneficial for the company.
How can the growth be?
Nuvama is expecting compound annual growth rates (CAGR) of order flow, sales, and EPS of 22%, 26%, and 50% in FY24-27, while EBITDA margin is estimated at 10.5% by FY27.
Skipper Ltd. Operating Profit Margin (OPM) of India is expected to increase from 9.7% in FY24 to 10.5% by FY27 and is also indicated to target 11% over the next three years.
Additionally, the company intends to double the tower production capacity from 3 lakh MTPA to 6 lakh MTA over the next four to 5 years at an expenditure of ₹800 crore.
Expected tremendous growth
Brokerage firm Nuvama Institutional Equities has a bull case price target of ₹740 per share. Which includes 11% margins and 30% compound annual growth rate (CAGR) in operating income (OI) by FY27E. Nuvama Institutional Equities has set a price target of ₹650 with a ‘Buy’ rating on the stock.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. It is recommended to consult a financial advisor before making investment decisions.