Dalal Street have been cheering the multifold rise in the stock market this year. In 2017, realty and infrastructure stocks have grown phenomenally with Indiabulls Real Estate, Sobha, DLF and Godrej Properties rising up to 220%. Infrastructure sector got a needed thrust after Narendra Modi government plans to build thousands of kilometres of roads and highways over the next five years at a cost of about Rs 7-lakh crore. Earlier in October this year, as part of India’s biggest highway development plan, the government approved the Phase 1 of Bharatmala project to develop and expand approximately 40,000 km of roads at an investment of Rs 3.5 lakh crore by 2022.
This year there were many stocks which gained massively vastly outperforming the key equity indices. We bring to you a small-cap infra stock which has doubled in 2017 to buy and you may gain 33%. Shares of transmission and distribution structure maker Skipper have more than doubled in 2017. The stock of Skipper had zoomed 104% to Rs 264.3 in the last 12-month period. The research and brokerage firm IIFL has given a buy rating with a target price of Rs 352 which implies an upside of 33% from its current market price. Skipper commands a market capitalisation of about Rs 2,720 crore on BSE. Shares of Skipper have an ISIN (International Security Identification Number): INE439E01022 and a scrip code: 538562. Skipper Ltd announced a dividend of Rs 1.55 in August 2017 per equity share of face value Re 1. Skipper is included in S&P BSE SmallCap index on Bombay Stock Exchange.
“Higher spends on sub-transmission network bodes well for Skipper which already has a comfortable order book position with revenue visibility of 18-24 months. Skipper intends to capitalize on opportunities arising from 100% electrification of Indian Railways and ramp up in solar capacities in India which will drive revenue growth. Its other business, Polymer products, is slowly recovering post-GST and will remain high growth vertical. It is currently trading at attractive valuations of ~13x FY20E EPS. We recommend BUY on the stock with a target price of Rs 352,” IIFL said.