Systematix Starts Coverage On Skipper, Cites Robust Transmission & Distribution Outlook

Skipper Ltd shares came into focus on December 30, 2025, after Systematix Institutional Equities initiated coverage with a 'Buy' rating and set a target price of ₹490 per share. The brokerage cited a robust outlook for the transmission and distribution (T&D) sector, driven by strong domestic capex visibility and the company's strategic expansion into developed international markets. This positive initiation highlights Skipper's position as one of the top global manufacturers of transmission towers, with significant cost advantages from high backward integration and a commanding market share in high-voltage segments.

Systematix emphasized Skipper's integrated manufacturing capabilities for T&D structures, which support structurally higher margins compared to peers. The company boasts the largest capacity in towers and poles, backed by an impressive order book of ₹88,000 crore—equivalent to 1.9 times FY25 revenue—and a strong bidding pipeline that provides clear visibility for at least two years. Analysts expect this solid foundation to fuel sustained revenue growth, particularly as India ramps up its power infrastructure investments and Skipper targets a sharper increase in exports over the next few years.

The brokerage pointed to Skipper's plans to nearly double its transmission line (TL) tower capacity to 0.6 million tonnes per annum by FY29, involving a proposed capex of around ₹800 crore. This expansion aims to meet rising domestic demand while scaling up orders from export markets. Exports already contribute meaningfully to revenue, and the company is targeting a balanced portfolio with 25% from developed regions like North America, Europe, and Australia, and another 25% from emerging markets in the Middle East, Africa, and Latin America. As higher-voltage infrastructure (such as 765 kV assets) gains prominence, Skipper's dominance in the 220 kV-and-above segment positions it to capture a larger share of the growing addressable market.

Skipper's stock closed at approximately ₹407 on the previous trading session, reflecting a recent dip amid broader market movements. The ₹490 target implies an upside potential of around 17% from that level, making it attractive for investors seeking exposure to India's infrastructure and power sector growth story. With government focus on energy transition and grid modernization, combined with Skipper's execution track record and international footprint, Systematix views the stock as well-placed for long-term value creation. As the company continues to benefit from these tailwinds, market participants will closely watch execution on capacity additions and export momentum in the coming quarters.