VALUE PICK DECEMBER ’17: SKIPPER LIMITED

Company Background –

History –

Skipper Limited was originally incorporated as Skipper Investments Limited in the year 1981. The companies name was changed to Skipper Steels Limited in the year 1990 and diversified in to manufacture of Telecom Towers and Masts. In the year 2009, the companies name was once gain changed to the current name of Skipper Limited.

Business –

• Established in the year 1981, Skipper Limited has today evolved into one of the world’s leading manufacturers for Transmission & Distribution Structures (Towers & Poles) in its Engineering Products segment and a leading and respected brand in the Plastic Water Pipes sector as well as trusted partner for executing critical Infrastructure EPC projects.
• The Company is one of the world’s largest Integrated Transmission Tower manufacturing companies with (1) Angle Rolling, (2) Tower, (3) Accessories & Fastener manufacturing and (4) EPC line construction. Its manufacturing capacity is the largest in India and among the top 10 in the world.
• Skipper Limited is a national powerhouse in the Polymer Pipe business. Under the brand name of ‘Skipper’, the company manufactures huge range of premium quality pipes and fittings, which are used in different areas such as Plumbing, Sewage, Agriculture and Borewell sectors.
• Additionally, the company is IT enabled and a number of operations are carried out on various ERP platforms.

Company’s Milestone –

• 1981 – The Company was incorporated as ‘Skipper Investments Limited’; the company began its journey by manufacturing Hamilton Poles
• 1990 – The Company’s name changed to ‘Skipper Steels Limited’ and it diversified into manufacturing telecom towers and masts
• 2001 – The Company set up LPG cylinder unit
• 2003 – The Company set up first Tube mill
• 2005 – The Company set up first Galvanising plant
• 2006 – The Company (1) Crossed 1 Billion in revenue, (2) Got Powergrid approval for tower unit and first order itself of 400KV towers (the highest voltage level at that time) and (3) Entered into a manufacturing tie-up with Ramboll, Denmark (the world’s largest tower designing company)
• 2007 – The Company entered into value addition of steel tubes as scaffoldings
• 2008 – The Company started Conversion of tower production process from manual to automatic CNC
• 2009 – The Company (1) Got India’s first order for 800KV transmission towers from Power Grid Corporation of India Limited (PGCIL), (2) Commissioned Uluberia unit with first PVC unit and India’s first double side Tube GI plant
• 2010 – The Company entered into backward integration of the two major product verticals tubes and towers, by way of Strip mill and Angle mill, respectively
• 2013 – The Company (1) Crossed 10 Billion in revenue, (2) Alliance agreement with South America’s largest TSO for exclusive supply to their transmission projects
• 2016 – (1) Awarded “Star Performer” by EEPC, (2) Awarded “Largest Tower Supplier” by PGCIL and (3) Commenced operations in Sikandrabad

Company’s Market Reach –

• Skipper’s market reach spans across 20 countries around the globe from South America, Europe, Africa, the Middle East, South and Southeast Asia and Australia.
• Within India, the company is a preferred manufacturer of choice for its customers pan India, from J&K to Tamil Nadu and from North East India to Gujarat.

Company Founder –

Late Shri Sadhu Ram Bansal, the Chairman Emeritus of Skipper Limited passed away on 27th September, 2014. He founded the S K Bansal Group in 1961, and over the decades, he helped shape the transformation of the Group from a small trading business to a large Market conglomerate. An efficient administrator with deep business insight, he successfully pursued his diverse business interests. With over 50 years of industry experience, Mr. Bansal had always been the guiding force behind Skipper’s growth. He played an instrumental role in helping the Company become a multi-product manufacturer of globally appreciated goods.

Listed On –

The company’s shares are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.

Stock Information

Share Holding Pattern

Skipper Limited – Financials

Conclusion –

Considering the techno-funda analysis and sector outlook; Skipper Limited looks good at Rs 265. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also).

 

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