Debt-free multibagger aerospace & defence stock with 4,000 per cent returns; Board announces 5:1 stock split!

Debt-free multibagger aerospace & defence stock with 4,000 per cent returns; Board announces 5:1 stock split!

Kiran Shroff

The stock gave multibagger returns of 265 per cent in just 1 year; 1,650 per cent in 5 years and a whopping 4,000 per cent in a decade.

Sika Interplant Systems Ltd is an Indian engineering company specializing in the aerospace, defence and automotive industries. They offer products, systems, and services including engineered projects, interconnect solutions, electrical module integration, maintenance, repair, overhaul and value-added distribution. Additionally, the company is an authorized Indian Offset Partner with a government-issued defence production license.

The Board proposes to subdivide each Rs 10 face value equity share into 5 shares of Rs 2 face value shares, subject to regulatory approval and shareholder consent. This is aimed at enhancing liquidity, broadening the shareholder base, and making shares more accessible to smaller investors. The company's authorized and paid-up capital structures will be adjusted accordingly, with no change in total value. The split ratio is 5:1, and the process is expected to take 3-6 months post-shareholder approval. The record date for the split will be determined by the Board and communicated to the exchange.

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According to Quarterly Results, the net sales increased by 23.6 per cent to Rs 30.42 crore and net profit increased by 47.5 per cent to Rs 5.27 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 76.7 per cent to Rs 106.03 crore and net profit increased by 120.2 per cent to Rs 19.36 crore in FY24 compared to FY23.

The company has a market cap of Rs 1,256 crore and its debt-free as of June 2024. The shares of the company have a PE of 62x, an ROE of 20 per cent and an ROCE of 26 per cent. The stock gave multibagger returns of 265 per cent in just 1 year; 1,650 per cent in 5 years and a whopping 4,000 per cent in a decade. Investors should keep an eye on this multibagger aerospace and defence stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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