Skipper Limited

Industrials — Engineering & Construction · NSE

₹523.20+₹2.80 (+0.54%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Skipper Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Skipper Limited manufactures and sells transmission and distribution structures, telecom towers, and fasteners in India. The company operates through three segments: Engineering Products, Infrastructure Projects, and Polymer Products.

IndustryEngineering & Construction

SectorIndustrials

Employees4,962

Annual revenue₹5,377 Cr

How does it make money?

Turns over ₹5,377 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 4,962 employees supports ₹1.08 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin10.3%

Net margin4.0%

Revenue / employee₹1.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Some evidence

ROCE of 20.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE20.7%

ROE14.3%

Peer median ROE14.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 20.3% and earnings to grow about 30.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.3%

Est. earnings growth+30.8%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +174% while net margin moved +119% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+174%

Margin effect+119%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.66 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

71/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.3x

3Y Median

63.9x

40 monthly readings · mean 59.1x · range 24.1x–123.7x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 59% below its 3y median of 63.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 30.1x.

vs. its own history

Cheap

63.9x median over 40 months · -59%

vs. sector peers

Fair

30.1x median of 3 peers · -13%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.3x

P/B

3.93x

EV/EBITDA

13.2x

PEG

0.32

Dividend Yield

0.02%

What's Good / What's Bad

🟢 What's Going Well5

Return on equity is rising
ROE has improved from 4.6% to 14.3%.
Return on capital is rising
ROCE has improved from 11.9% to 20.7%.
High return on capital employed
ROCE of 20.7% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 26.3x the stock trades 59% below its own median of 63.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 92% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 312% against revenue growth of 174% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 92% over 3 years, from ₹494 Cr to ₹948 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 312% against revenue up 174% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹89 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 59% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 312% against revenue up 174%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 30% a year✓ 39.9% CAGR
Latest reported year was 4.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹89 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹6,391 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.9

Profitable

Profitable on a per-share basis

ROE

14.3%

Moderate

Moderate capital efficiency

ROCE

20.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

4.5%

Modest

Modest growth

Profit Growth (YoY)

25.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.02%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹89 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹523.2

P/E (Forward)

17.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.0%

Average

Average margins

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

1.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

541.2 / 546.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,962 Cr	₹3,137 Cr	₹4,469 Cr	₹5,377 Cr	+39.9%
EBITDA	₹225 Cr	₹323 Cr	₹462 Cr	₹556 Cr	+35.2%
EBITDA Margin	11.5%	10.3%	10.3%	10.3%	—
PAT (Net Profit)	₹36 Cr	₹82 Cr	₹149 Cr	₹213 Cr	+81.6%
EPS	₹3.33	₹7.14	₹13.85	₹18.88	+78.3%
ROE	4.6%	9.1%	12.5%	14.3%	—
ROCE	11.9%	18.6%	24.2%	20.7%	—
Total Debt	₹494 Cr	₹592 Cr	₹740 Cr	₹948 Cr	+24.3%
Free Cash Flow	₹199 Cr	₹97 Cr	-₹85 Cr	-₹89 Cr	—

🟢 Revenue has grown at 39.9% a year over 3 years.

🟢 EBITDA has grown at 35.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.5% to 10.3% over 3 years (-1.1 pts).

🟢 PAT (Net Profit) has grown at 81.6% a year over 3 years.

🟢 EPS has grown at 78.3% a year over 3 years.

🟢 ROE has risen from 4.6% to 14.3% over 3 years (+9.7 pts).

🟢 ROCE has risen from 11.9% to 20.7% over 3 years (+8.8 pts).

🔴 Total Debt has grown at 24.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹199 Cr to -₹89 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,533 Cr

Total Liabilities

₹3,042 Cr

Total Debt

₹948 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹277 Cr

Capex

-₹366 Cr

Shareholding (proxy)

Institutional Holding

8.7%

Insider Holding

65.8%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

08 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹596

+13.9% vs CMP

Target Range

₹570 – ₹622

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

4 positive2 general

Skipper Q1FY27 net profit rises 26.5% to ₹565M on infra surge

scanx.trade, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Skipper Ltd. Share Price at fresh 52-week high; stock view

Univest, 07 Sept

Estimating The Fair Value Of Skipper Limited (NSE:SKIPPER)

Simply Wall Street, 10 Feb

Skipper Q1 Profit Rises 27% to ₹56.5 Cr; Revenue Hits Record

HDFC Sky, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Skipper Shares Rise 3% on Rs 1,305 Cr T&D Order Wins

Equitypandit, 27 AugOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Rs 1,305 Crore New Order: This Power Transmission Stock Gains 2.70% as Skipper Secures Domestic & International T&D Projects

Dalal Street Investment Journal, 27 AugOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟡Financial HealthAdequate9.8/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.5/15

🟡ValuationFair9.5/15

🟡RiskModerate4.5/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 30% a year39.9% CAGR
✓EBITDA margin holds above 8%10.3%
✗Free cash flow remains positive-₹89 Cr
✗Interest cover stays above 3x2.6x
✓Debt / EBITDA stays below 2x1.7x