Small-cap defence stock specializing in aerospace engineering solutions is in focus after it jumped up to 12% after announcing its Q3FY25 results, with robust growth in its net profit.
Share Price Movement
With a market capitalization of ₹1,030Cr, the stock of Sika Interplant Systems opened at ₹2,500, up 8% from yesterday’s close, and after opening, it made an intraday high of ₹2,575 up 12%.
Q3FY25 Results
The company reported a 46% YoY increase in revenue from ₹26 Cr in Q3FY24 to ₹38 Cr in Q3FY25. On a QoQ basis, the company reported an increase of 14% in revenue from 33 Cr in the previous quarter.
Their Net profit saw an upside with a 51% YoY increase from ₹4.72 Cr to ₹7.14 Cr for the same period. On a QoQ basis, the company reported an increase of 15 % in revenue from 6.18 Cr in the previous quarter.
Budget 2025: Defence sector
In Budget 2025, the defense sector was allocated 6.81 lakh crore increase of 9.53% from last year. Out of this, ₹1,80,000 Cr i.e. 26.43% of the total allocation will be spent on Capital Outlay on Defence Services.
Even after increasing the budget allocation for the defense sector, the Nifty India Defence index fell up to 5% and major defence stocks declined up to 8 % Because the sector was expecting more allocation for them in the Budget.
Even after a disappointing budget for the defence sector, the outlook looks bright as India has to become Self-Reliant in defence manufacturing, increase private sector participation, and become a defence exporter.
About the Company
SIKA is an engineering-driven company focused on the Aerospace, Defence & Space (A&D) and Automotive sectors in India. SIKA’s main lines of business comprise: engineered projects & systems; interconnect solutions & electrical module integration, maintenance, repair & overhaul (MRO); and value-added distribution.
Written By Abhishek Das
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
