Shares of this multibagger defence stock jumped approximately 5 percent in Friday’s trading session after the company reported updates on its order book since October 2023. In the past six months, the company’s stock gained nearly 80 percent to its holders.
With a market capitalization of Rs 884.08 crores, the stocks of Sika Interplant Systems Limited started their trading session on Friday at Rs 2,090 and currently trade at Rs 2,088, gaining approximately 5 percent compared to the previous closing level of Rs 1,994.85 apiece.
Such bullish behaviour in the company’s share price was witnessed after the company, through its recent regulatory filing with the Bombay Stock Exchange (BSE), intimated robust order book updates since October 2023.
Since the date of last disclosure, i.e., as of 19th October 2023, the aerospace & defence (A&D) company received additional orders for ‘Advanced Engineering Products and Services’ amounting to approximately Rs 86 crores.
Adding to the contracts mentioned above, the cumulative orders, over the last thirteen months, received by the company stands at around Rs 237 crores as of 30th April 2024.
During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profits, showed movements in opposing directions.
The former, on one end, increased from Rs 18.26 crores during Q2FY24 to Rs 26 crores during Q3FY24, and the latter, on the other end, slipped marginally from Rs 5.01 crores to Rs 4.73 crores.
Keeping a purview of the last year, the company’s stock has proven to deliver multibagger returns of approximately 245 percent to its stakeholders, i.e., if someone has invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3.45 lakhs.
Sika Interplant Systems Limited is engaged in manufacturing and rendering services in engineering projects/systems, and other services. The company is actively involved in four broad business segments, namely, engineering, systems integration, assembly & testing, and maintenance.
Written by Amit Madnani
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