NSEI:SKIPPER

Stock Analysis Report

Executive Summary

Skipper Limited manufactures and sells engineering and polymer products in India.

Rewards

Trading at 73.3% below its fair value

Risk Analysis

Earnings have declined by -5.89% per year over past 5 years

Interest payments are not well covered by earnings

Profit margins (2.2%) are lower than last year (4%)

Does not have a meaningful market cap (₹5B)



Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Skipper's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SKIPPER has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

SKIPPER

0.8%

IN Construction

-0.7%

IN Market


1 Year Return

-27.0%

SKIPPER

0.5%

IN Construction

8.2%

IN Market

Return vs Industry: SKIPPER underperformed the Indian Construction industry which returned -4.3% over the past year.

Return vs Market: SKIPPER underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

SKIPPERIndustryMarket
7 Day-1.8%0.8%-0.7%
30 Day6.7%5.6%2.5%
90 Day-9.8%-3.3%5.8%
1 Year-26.7%-27.0%1.8%0.5%10.1%8.2%
3 Year-68.0%-68.7%20.2%15.9%30.2%23.4%
5 Yearn/a17.2%10.6%34.8%22.8%

Price Volatility Vs. Market

How volatile is Skipper's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Skipper undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKIPPER (₹48.9) is trading below our estimate of fair value (₹183.4)

Significantly Below Fair Value: SKIPPER is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SKIPPER is poor value based on its PE Ratio (15.4x) compared to the Construction industry average (12.4x).

PE vs Market: SKIPPER is poor value based on its PE Ratio (15.4x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SKIPPER's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SKIPPER is overvalued based on its PB Ratio (0.8x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

How is Skipper forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.8%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Skipper has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Skipper performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKIPPER has high quality earnings.

Growing Profit Margin: SKIPPER's current net profit margins (2.2%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: SKIPPER's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: SKIPPER's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SKIPPER had negative earnings growth (-61.8%) over the past year, making it difficult to compare to the Construction industry average (6.5%).


Return on Equity

High ROE: SKIPPER's Return on Equity (5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Skipper's financial position?


Financial Position Analysis

Short Term Liabilities: SKIPPER's short term assets (₹11.5B) exceed its short term liabilities (₹8.4B).

Long Term Liabilities: SKIPPER's short term assets (₹11.5B) exceed its long term liabilities (₹2.0B).


Debt to Equity History and Analysis

Debt Level: SKIPPER's debt to equity ratio (95%) is considered high.

Reducing Debt: SKIPPER's debt to equity ratio has reduced from 175.5% to 95% over the past 5 years.

Debt Coverage: SKIPPER's debt is well covered by operating cash flow (28.7%).

Interest Coverage: SKIPPER's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: SKIPPER has a high level of physical assets or inventory.

Debt Coverage by Assets: SKIPPER's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Skipper's current dividend yield, its reliability and sustainability?

0.50%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.3%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SKIPPER's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: SKIPPER's dividend (0.51%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: SKIPPER has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SKIPPER's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.8%), SKIPPER's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Skipper's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Sajan Bansal (61yo)

12.3yrs

Tenure

₹18,000,000

Compensation

Mr. Sajan Kumar Bansal has been the Managing Director of Skipper Limited, since October 2007. Mr. Bansal is having an experience of over 25 years in steel and engineering industry. He has been a Director a ...


CEO Compensation Analysis

Compensation vs Market: Sajan's total compensation ($USD254.01K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Sajan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

37.5yo

Average Age

Experienced Management: SKIPPER's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

61yo

Average Age

Experienced Board: SKIPPER's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sajan Bansal (61yo)

    MD & Director

    • Tenure: 12.3yrs
    • Compensation: ₹18.00m
  • Siddharth Bansal (30yo)

    CEO of Polymer Division & Executive Director

    • Tenure: 9.3yrs
    • Compensation: ₹9.00m
  • Devesh Bansal (36yo)

    Executive Director

    • Tenure: 12.8yrs
    • Compensation: ₹9.00m
  • Sharan Bansal (39yo)

    Executive Director

    • Tenure: 17.9yrs
    • Compensation: ₹9.00m
  • Sanjay Agrawal

    Chief Financial Officer

    • Compensation: ₹8.04m
  • Abhishek Goel

    Senior Manager of Technical

    • Ranjit Mukherjee

      Chief Manager of Drawing

      • Manish Agarwal

        Compliance Officer & Company Secretary

        • Tenure: 2.9yrs
        • Compensation: ₹963.00k
      • Yash Jain

        Executive Director

        • Tenure: 2.3yrs
        • Compensation: ₹4.07m

      Board Members

      • Joginder Dua (67yo)

        Independent Director

        • Tenure: 3.9yrs
        • Compensation: ₹160.00k
      • Ashok Bhandari (66yo)

        Independent Director

        • Tenure: 2.3yrs
        • Compensation: ₹270.00k
      • Sajan Bansal (61yo)

        MD & Director

        • Tenure: 12.3yrs
        • Compensation: ₹18.00m
      • Siddharth Bansal (30yo)

        CEO of Polymer Division & Executive Director

        • Tenure: 9.3yrs
        • Compensation: ₹9.00m
      • Amit Deb (70yo)

        Chairman & Lead Independent Director

        • Compensation: ₹330.00k
      • Devesh Bansal (36yo)

        Executive Director

        • Tenure: 12.8yrs
        • Compensation: ₹9.00m
      • Sharan Bansal (39yo)

        Executive Director

        • Tenure: 17.9yrs
        • Compensation: ₹9.00m
      • Mamta Binani

        Independent Director

        • Tenure: 4.9yrs
        • Compensation: ₹225.00k
      • Yash Jain

        Executive Director

        • Tenure: 2.3yrs
        • Compensation: ₹4.07m
      • Pramod Shah

        Independent Non-Executive Director

        • Tenure: 1.3yrs
        • Compensation: ₹75.00k

      Company Information

      Skipper Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Skipper Limited
      • Ticker: SKIPPER
      • Exchange: NSEI
      • Founded: 1981
      • Industry: Construction and Engineering
      • Sector: Capital Goods
      • Market Cap: ₹5.118b
      • Shares outstanding: 102.67m
      • Website: https://www.skipperlimited.com

      Number of Employees


      Location

      • Skipper Limited
      • 3A, Loudon Street
      • 1st Floor
      • Kolkata
      • West Bengal
      • 700017
      • India

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      538562BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2014
      SKIPPERNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2014

      Biography

      Skipper Limited manufactures and sells engineering and polymer products in India. It operates through Engineering Products, Infrastructure Projects, and Polymer Products segments. The Engineering Products segment offers power transmission towers, power distribution poles, transmission line monopoles, mid steel and high tensile angles, solar structures, fasteners, tower accessories, telecom towers, angles, channels, highmast poles, swaged poles, scaffoldings, solar power systems, railway structures, etc. The Infrastructure Projects segment provides horizontal direct drilling services; and engineering, procurement, and construction services. Its solutions cover transmission line EPC, and underground utility laying by horizontal directional drilling. The Polymer Products segment offers overhead tanks, CPVC solvent cement, fittings, and other related products, as well as UPVC, CPVC, SWR, agricultural, and bore well pipes and fittings. The company also exports its products to South America, Europe, Africa, the Middle East, South and Southeast Asia, and Australia. Skipper Limited was founded in 1981 and is based in Kolkata, India. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/24 13:02
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.