Sika Interplant Systems Limited

Industrials — Aerospace & Defense · NSE

₹942.00−₹8.90 (−0.94%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Sika Interplant Systems Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sika Interplant Systems Limited, together with its subsidiaries, engages in manufacturing and rendering of services in engineering products and engineering projects/systems for aerospace, defense and space, and automotive sectors in India.

IndustryAerospace & Defense

SectorIndustrials

Employees57

Annual revenue₹211 Cr

How does it make money?

Turns over ₹211 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 57 employees supports ₹3.71 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin22.3%

Net margin17.3%

Revenue / employee₹3.71 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 30.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE30.4%

ROE23.1%

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +252% while net margin moved +18% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+252%

Margin effect+18%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 57.6x is demanding — it needs sustained high growth to justify
✗ P/B of 12.19x is a steep premium to book

Quality vs. Valuation

Company Quality

80/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

57.6x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 35% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -35%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

57.6x

P/B

12.19x

EV/EBITDA

42.3x

PEG

0.95

Dividend Yield

0.37%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 20.6% to 22.3% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 10.3% to 23.4%.
Return on capital is rising
ROCE has improved from 13.8% to 30.4%.
High return on capital employed
ROCE of 30.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 2.10x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 20.6% to 22.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 35% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.10x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 39% a year✓ 52.1% CAGR
Latest reported year was -37.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹47 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 27%✓ 30.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

4 good · 2 neutral · 5 weak

Market Cap

₹1,997 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

57.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.19x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹16.35

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

30.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.10x

High

High leverage

Revenue Growth (YoY)

-37.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-18.9%

Falling

Profits are shrinking

Dividend Yield

0.37%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹47 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹942

ROA

13.2%

Good

Assets are working hard

Operating Margin

18.7%

Good

Healthy core-business profitability

Net Margin

18.5%

Good

Strong bottom-line conversion

Current Ratio

1.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

26.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹60 Cr	₹106 Cr	₹148 Cr	₹211 Cr	+52.1%
EBITDA	₹12 Cr	₹24 Cr	₹32 Cr	₹47 Cr	+56.3%
EBITDA Margin	20.6%	22.4%	21.6%	22.3%	—
PAT (Net Profit)	₹9 Cr	₹19 Cr	₹25 Cr	₹36 Cr	+60.7%
EPS	₹4.15	₹9.13	₹11.95	₹17.19	+60.7%
ROE	10.3%	18.8%	20.4%	23.4%	—
ROCE	13.8%	23.8%	25.9%	30.4%	—
Free Cash Flow	-₹4 Cr	₹12 Cr	₹4 Cr	₹47 Cr	—

🟢 Revenue has grown at 52.1% a year over 3 years.

🟢 EBITDA has grown at 56.3% a year over 3 years.

🟢 EBITDA Margin has risen from 20.6% to 22.3% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 60.7% a year over 3 years.

🟢 EPS has grown at 60.7% a year over 3 years.

🟢 ROE has risen from 10.3% to 23.4% over 3 years (+13.1 pts).

🟢 ROCE has risen from 13.8% to 30.4% over 3 years (+16.6 pts).

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹47 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹175 Cr

Total Liabilities

₹20 Cr

Total Debt

—

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹47 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.3%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

05 Aug 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed1 negative4 general

Sika Interplant Systems Limited Actuals & Estimates (NSE:SIKA)

TradingView, 03 Jul

Sika Interplant Systems Q4 Results 2026 - Find Sika Interplant Systems Q4 Earnings Result | SIKA Q4 results

Livemint, 09 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Sika Interplant Systems consolidated net profit declines 18.84% in the June 2026 quarter

Business Standard, 15 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Aerospace and Rail Safety Stocks: Krishna Defence, Sika Interplan

Univest, 07 Oct

Sika Interplant Systems | Stock Share Price Live

MarketSmith India, 21 Jul

Sika Interplant Systems Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

Revenue growth is negative (-37.0%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong13.5/15

🔴ValuationDemanding3.2/15

🔴RiskHigh3.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 39% a year52.1% CAGR
✓EBITDA margin holds above 20%22.3%
✓Free cash flow remains positive₹47 Cr
✓ROCE stays above 27%30.4%