Shares of a small-cap engineering company hit the 20 percent upper circuit on Monday’s trades to reach an intraday high of ₹ 203.10 apiece on the National Stock Exchange (NSE) after the company reported robust results for the latest quarter.
According to an exchange filing, Skipper India reported a net profit of ₹ 23.0 Crores in the April to June quarter (Q1FY24), compared to a loss of ₹ 5.3 crores in the corresponding quarter of the previous year (Q1FY23). Its revenue grew 33.3 percent to ₹ 554.6 crores in Q1FY24, compared to ₹ 416.1 crore in Q1FY23. Its EBITDA stood at ₹ 60.14 crores in the latest quarter, compared to ₹ 35.83 crores in the corresponding quarter last year.
Skipper is engaged in manufacturing and selling transmission & distribution structures and pipes and fittings. It also undertakes EPC projects in the infrastructure segment.
The company’s order inflow was at ₹ 1215.00 crores for engineering products supplies and EPC work from several SEBs and for various export supplies. Moreover, it has a strong bidding pipeline of ₹ 6,000 crores (international) and ₹ 6,550 crores (Domestic).
The company’s share price increased by 109.60 percent in the past six months and by 234.32 percent in the past year to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.09 lakhs today. If the same amount was invested a year ago, the holdings would be worth ₹ 3.34 lakhs!
With a market capitalization of ₹ 1,738 crores, Skipper is a small-cap company. It has a low return on equity of 4.74 percent and an ideal debt-to-equity ratio of 0.64. Its shares were trading at a price-to-earnings ratio (P/E) of 48.92, which is higher than the industry P/E of 9.00, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 71.89 percent stake in it, followed by retail investors with 18.18 percent and foreign investors with 9.93 percent.
Written by Simran Bafna
The post Stock hits 20% upper circuit after Reporting Net Profit of ₹ 23 Cr against net loss of ₹ 5.3 Cr in previous year appeared first on Trade Brains.
