The shares of this leading equipment manufacturer for automotive, aerospace, etc, jumped by 16 percent after the company announced entering into a licensing agreement with Collins Aerospace.
With a market capitalization of Rs 2,003 crores, the shares of Sika Interplant Systems Ltd are currently trading at Rs 945 per share and hit its 52-week high of Rs 956.90 on Tuesday. Over the last five years, the stock has delivered a multibagger return of 2,622 percent.
On Tuesday, Sika Interplant Systems announced that it formalized a licensing agreement with Goodrich Actuation Systems SAS (France) and Goodrich Actuation Systems Limited (UK), both part of Collins Aerospace. This partnership grants SIKA the rights to conduct complete maintenance, repair, and overhaul (MRO) on discrete primary flight control actuation elements, for which Collins Aerospace serves as the original equipment manufacturer (OEM).
The components are pieces that are integral to “standard installations” on all Airbus A320 & A321 series aircraft. The agreement stipulates that SIKA is allowed to service the components for aircraft registered in India and within certain neighbouring countries defined in the licensing terms. This alliance provides SIKA with an opportunity to grow its technical capabilities and enhance its service to the aviation and aerospace industries in the region.
Financial Highlights
The company reported a revenue of Rs 148 crores in FY25, up by 39.62 percent from its FY24 revenue of Rs 106 crores. Coming to its profitability, it reported a net profit growth of 31.57 percent to Rs 25 crores in FY25 from Rs 19 crores in FY24.
The stock has delivered an ROE and ROCE of 22.62 percent and 29.73 percent respectively, and is currently trading at a P/E of 78x as compared to its industry average of 70.30x.
SIKA is an engineering company with a customer base that includes Aerospace, Defence & Space and Automotive some of the largest tier 1 and 2 companies in India. It has business units in engineered projects, interconnect solutions, MRO, and value-added distribution.
SIKA has over 25 years of experience delivering high-end engineering projects with global partners and is a licensed Indian Offset Partner for defence production.
Written by Satyajeet Mukherjee
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