This Multibagger defence stock rallies 65% in 3 days; time to book profit?

Shares Sika Interplant Systems Ltd extended its gains for another trading session as the stock soared another 20 per cent on Thursday to hit a new 52-week high. The stock had hit an upper circuit on Wednesday, taking the rally to 65 per cent in just three-trading sessions amid an order win.

Sika Interplant Systems has entered into a License Agreement with Goodrich Actuation Systems SAS (France) and Goodrich Actuation Systems Limited (UK), each a part of Collins Aerospace (Collins), said the company in a release on June 3, 2025.

"SIKA will be licensed to undertake maintenance, repair and overhaul (MRO) of specific primary flight control actuation part numbers for which Collins is the original equipment manufacturer (OEM). These components are standard installations on all Airbus A320/A321 series aircraft," it added.

Shares of Sika Interplant Systems gained 19.75 per cent to Rs 1347.70 on Thursday commanding a total market capitalization of more than 2,850 crore. The stock had settled at Rs 1,125.30 on Wednesday, rising 20 per cent. The stock had jumped nearly 50 per cent in just two days, while it is up 65 per cent from its price of Rs 815 three-days ago.

Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities said that Sika is a niche player in the defence and aerospace segment, which has bagged a significant contract. "Investors, who have bought the stock near 52-week lows may book partial profit, while investors with high risk appetite and long-term vision may consider to hold them for a long term period," he said.

Shares of Sika Interplant Systems have zoomed more than 235 per cent in less than five months, from its 52-week low at Rs 399.96 hit on January 27, 2025. Shares of Sika Interplant Systems had traded ex-split in 1:5 ratio on March 17, 2025. Even from its adjusted stock level. The stock has gained nearly 175 per cent. It has zoomed 3,870 per cent in the last five years.

Sika Interplant Systems reported a 51.06 per cent rise on a year-on-year (YoY) basis to Rs 7.14 crore in the December 2024 period, driven by higher demand and improved operational performance. The company's Ebita for the quarter came in at Rs 9.14 crore, up 37.24 per cent YoY. Its revenue increased 46.11 per cent YoY to Rs 37.98 crore for the quarter under review.

BSE-listed Sika Interplant Systems is an engineering driven company focused on providing products, systems and services to Aerospace, Defence & Space and Automotive sectors in India. Its parent company Ultraweld Engineers was founded in 1960.