Ajay Upadhyaya’s portfolio multibagger stock with Rs 6,074 crore order book: This heavy electrical equipment stock gains over 9 per cent as the board announces rights issue!

The stock gave multibagger returns of 120 per cent in just 1 year whereas BSE Industries Index is up by 101 per cent.

Skipper Limited (BSE scrip code: 538562) and (NSE symbol: SKIPPER), one of the world's leading manufacturers of power transmission and distribution structures and a prominent manufacturer of poles and high mast structures, announced that the Board of the company proposed rights issue of up to Rs 200 crore in the ratio 1:10, i.e., 1 right equity share for every 10 fully paid-up equity share of the company held by the eligible equity shareholders of the company, as on the record date.

The company fixed the record date for the rights issue as Friday, January 12, 2024. The rights issue opening date is Tuesday, January 30, 2024, and the rights issue closing date is Thursday, February 08, 2024. The issue price of the rights issue is Rs 194 per share [including a premium of Rs 193 per equity share]. The company will issue 1,02,67,021 equity shares of the company each on a partly-paid basis for an amount aggregating to Rs 200 crore.

Skipper Ltd is engaged in manufacturing and selling transmission & distribution structures and pipes & fittings. It also undertakes EPC projects in the infrastructure segment. 

According to the Quarterly Results ended September 30, 2023, the net sales increased by 67.2 per cent to Rs 772.37 crore and the net profit skyrocketed 320.5 per cent to Rs 18.98 crore in Q2FY24 compared to Q2FY23. In FY23, the net sales increased by 16 per cent to Rs 1,980 crore and net profit increased by 44 per cent to Rs 36 crore compared to FY22. As of September 2023, the company’s order book stands at Rs 6,074 crore.

Skippers Ltd has a market cap of Rs 2,682 crore with a 3-year stock price CAGR of 65 per cent. Today, shares of the company gained 9.3 per cent to an intraday high of Rs 263.80 per share. As of September 2023, an ace investor, Ajay Upadhyaya owns a 1.66 per cent stake in the company. At the closing bell, shares of the company were trading at Rs 261.2 per share, up 8.31 per cent with a spurt in volume by more than 4.82 times on BSE.

The stock gave multibagger returns of 120 per cent in just 1 year whereas BSE Industries Index is up by 101 per cent. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.