1. At a Glance
A ₹2,757 Cr defence engineering gem with no debt, big global orders, and 20%+ net margins — but trading at a PE of 110. Sika Interplant isn’t just flying under the radar; it’s reverse-engineering the plane.
2. Introduction with Hook
If HAL and Zen Technologies had a minimalist, cash-rich cousin who quietly doubled your portfolio while you weren’t looking — it would be Sika Interplant.
- Revenue up 39% YoY
- FY25 PAT: ₹25 Cr on just ₹148 Cr sales
- Stock up 123% in 1 year, PE: 110+
With a Collins Aerospace MRO deal and a land bank for expansion, this smallcap is punching aircraft-grade titanium above its weight.
3. Business Model (WTF Do They Even Do?)
Sika Interplant builds and services tech gear for:
- Aerospace: Flight control systems, electrical integration
- Defence: Engineered systems, repair stations
- Space & Automotive: MRO, value-added distribution
Key Segments:
- Engineered Projects: Customised defence systems
- Interconnect Modules: Think plug-n-play wiring for aircraft
- MRO Services: Maintenance for Airbus A320/A321
- Exports + Licenses: Collins, Radiant Power, Aerotek Sika
It’s not manufacturing weapons — it’s building the systems that make weapons smart and planes reliable.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue (₹ Cr) | 148 | 106 | 60 |
| EBITDA (₹ Cr) | 29 | 20 | 10 |
| PAT (₹ Cr) | 25 | 19 | 9 |
| Net Worth (₹ Cr) | 124 | 100 | 81 |
| Cash from Ops (₹ Cr) | 8 | 20 | -3 |
Highlights
- Nearly tripled sales in 3 years
- PAT margins: ~17%+
- Zero debt + solid cash flows = rare aerospace unicorn
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹1,300 |
| PE Ratio | 110x |
| EPS (FY25) | ₹11.95 |
| P/B | 22.2x |
| Market Cap | ₹2,757 Cr |
EduFair Value Estimate:
With peers like Zen (PE 60), Data Patterns (PE 72), and HAL (PE 39), SIKA’s valuation is… orbital.
FV Range = ₹650–₹850, assuming long-term 50–70x earnings multiple.
6. What’s Cooking – News, Triggers, Drama
- New Orders: ₹264 Cr in Dec 2024, plus ₹86 Cr in May 2024
- MRO License: Collins Aerospace for A320/A321
- Expansion: Land acquired in Bengaluru for new facility
- Acquisition: 100% of Aerotek Sika — now fully integrated
Sika is quietly going from boutique aerospace supplier to a trusted global partner. Think Tier-2 HAL.
7. Balance Sheet
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Total Assets (₹ Cr) | 153 | 122 | 103 |
| Net Worth (₹ Cr) | 124 | 100 | 81 |
| Borrowings (₹ Cr) | 0 | 0 | 0 |
| Investments (₹ Cr) | 38 | 30 | 20 |
| Fixed Assets (₹ Cr) | 45 | 43 | 36 |
Takeaway:
Balance sheet tighter than a submarine hatch. Almost no liabilities. High asset turnover.
8. Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY25 | 8 | -3 | -4 | 0 |
| FY24 | 20 | -18 | -2 | 0 |
| FY23 | -3 | 5 | -2 | 0 |
TL;DR
Cash flows are decent — they reinvest heavily but don’t overextend. No new equity, no loans, no drama.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 22.0% |
| ROCE | 29.0% |
| OPM | 20.0% |
| Net Margin | 17.0% |
| Debt/Equity | 0.00 |
| Inventory Days | 28 |
| Debtor Days | 80 |
Notes:
- Clean ratios, but debtor days inching up
- ROE > 20% with 0 debt? Chef’s kiss
- PE? Pass the popcorn.
10. P&L Breakdown – Show Me the Money
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue (₹ Cr) | 148 | 106 | 60 |
| Gross Expenses | 119 | 86 | 50 |
| Operating Profit | 29 | 20 | 10 |
| Net Profit (₹ Cr) | 25 | 19 | 9 |
| EPS (₹) | 11.95 | 9.13 | 4.15 |
Sika doesn’t run wild — it scales carefully, reinvests, and keeps expenses lean.
11. Peer Comparison
| Company | P/E | ROCE | PAT Margin | D/E |
|---|---|---|---|---|
| HAL | 39 | 33.8% | 27% | 0.00 |
| Bharat Electronics | 56 | 39% | 22% | 0.00 |
| Zen Tech | 59 | 36.7% | 28% | 0.00 |
| Data Patterns | 72 | 21.6% | 31% | 0.00 |
| Astra Microwave | 61 | 19.1% | 18% | 0.00 |
| Sika Interplant | 110 | 29% | 17% | 0.00 |
Sika’s performance holds up. Valuation? Floating in zero gravity.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | % Holding |
|---|---|
| Promoters | 71.72% |
| FIIs | 3.11% |
| DIIs | 0.01% |
| Public | 25.15% |
| No. of Shareholders | 25,534 |
- Consistent promoter holding
- Increasing FII interest
- Retail taking notice — gone from 6K to 25K holders in 2 years
13. EduInvesting Verdict™
Sika Interplant is the aerospace equivalent of a boutique investment firm — small, nimble, high-margin, zero debt. Its latest MRO deals, client wins, and clean balance sheet scream “quality”.
BUT: At a PE of 110, you’re paying next year’s wedding gifts in advance. A correction may come, but it won’t change the underlying story.
Final Take:
Buy for the business, not the current price. Long runway ahead — just expect a few air pockets.
Metadata
Written by EduInvesting | July 13, 2025
Tags: Defence, Aerospace, MRO, Sika Interplant, Engineering Stocks, Multibagger, High PE, Zero Debt Companies, Defence PSU Peers
