Sika Interplant Systems Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Sika Interplant Systems Ltd trades at ₹1,115, in a confirmed uptrend and 5 weeks into that stage. That is +10.9% against its own 200-day average. It sits at 59% of a 52-week range of ₹823 to ₹1,316. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 9 straight weeks.

Today the stock is in a confirmed uptrend — week 5 of stage 2, confirmed. At ₹1,115 it trades +10.9% versus its 200-day average and sits at 59% of its 52-week range (₹823–₹1,316).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +4,660% while the NIFTY 500 moved +276% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 9 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Sika Interplant Systems Ltd trades at 67.4× P/E, at the pricey end of its own range (94th percentile). Its long-run median P/E is 36.5×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 67.4× is at the pricey end of its own range (94th percentile), against a long-run median of 36.5× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +43.8% against a −7.6% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +61.5%/yr price move, ~+24.0%/yr came from earnings growth and ~+37.5 pp from the multiple (expanding); over 10y, of the +45.8%/yr price move, ~+36.3%/yr came from earnings growth and ~+9.5 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Sika Interplant Systems Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: revenue growth has eased from +60.5% at its peak to +43.1% but is still expanding, ROCE holding at 34.0%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

72.6/100 — rank 2 of 24 in Aerospace & Defence - Equipments · 90% evidence confidence

Sika Interplant Systems Ltd scores 72.6 out of 100 against the 24 companies it is compared with in Aerospace & Defence - Equipments, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 28.4 + 21.9 + 12.9 + 9.4 = 72.6. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Sika Interplant Systems Ltd reported ₹41.3 Cr of revenue in the Mar 26 quarter, −10.2% year on year. Over 10 years it has compounded at 17.5% a year. The last full year, FY26, came in at ₹211 Cr. The last four reported quarters add to ₹211 Cr.

FY26 revenue came in at ₹211 Cr (+42.6% on the year), capping 10 years at 17.5% compound. The latest quarter (Mar 26) printed ₹41.3 Cr, −10.2% year on year.

Pace check: the last four quarters averaged +50.3% growth against the decade's 17.5% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +43.1% over the last 4 quarters against +41.1%/yr over the last 8 — stabilising; TTM profit +38.2% vs +37.5%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Sika Interplant Systems Ltd's operating margin is 25.2% in the Mar 26 quarter, +7.9 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 7.0% to 21.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 25.2%, +7.9 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0%–21.0%, and FY26's 21.0% is the top of that band — a record year.

Why the margin moved: operating margin went +7.9 pp year on year while gross margin went +9.3 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Sika Interplant Systems Ltd earned ₹7.8 Cr of net profit in the Mar 26 quarter, −1.0% year on year. Full-year FY26 profit was ₹36.0 Cr. The 10-year compound rate is 33.5%. That is 18.9% of the quarter's revenue. The same quarter a year earlier earned ₹7.9 Cr.

Mar 26 profit was ₹7.8 Cr, −1.0% year on year. On the full year, FY26 printed ₹36.0 Cr (+44.0%), and the 10-year compound rate is 33.5%.

🚨 Why profit moved: revenue contributed −10.2% and the margin +7.9 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +43.3% vs revenue +50.3%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 94% of Sika Interplant Systems Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹47.0 Cr of operating cash against ₹36.0 Cr of profit. After ₹0.0 Cr of capital spending, ₹47.0 Cr was left as free cash.

FY26: operating cash of ₹47.0 Cr against reported profit of ₹36.0 Cr, leaving free cash of ₹47.0 Cr after ₹0.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 94% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 94%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 3.7× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Sika Interplant Systems Ltd's cash conversion cycle runs 6 days in FY26, up from 4 days in FY21. Capital spending ran ₹11.0 Cr over the last 3 years. At FY26 sales of ₹211 Cr each day of that cycle holds about ₹0.6 Cr, so roughly ₹3.0 Cr sits inside the business at any moment.

FY26: debtors at 18 days, inventory at 3 days — roughly 0.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 6 days, looser than FY21's 4.

The full loop: cash goes out to suppliers and production on day 0; stock waits 3 days to sell; customers pay about 18 days after that; and suppliers themselves are paid at 16 days — netting out to the 6-day cycle.

In money terms: at FY26 sales of ₹211 Cr, each day of the cycle holds about ₹0.6 Cr — so the 6-day loop keeps roughly ₹3.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹11.0 Cr over the last 3 fiscal years against ₹3.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Sika Interplant Systems Ltd earns a ROCE of 35% in FY26. That is up from a trough of 5% in FY18. Return on invested capital clears the cost of that capital by +16.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 17.1% net margin on 1.21× asset turns.

FY26 ROCE is 35%, recovered from a FY18 trough of 5% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 17.1% net margin × 1.21× asset turns × 1.13× balance-sheet leverage ≈ 23.4% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 28.2% − 12.0% = a +16.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Sika Interplant Systems Ltd carries ₹0.0 Cr of borrowings against ₹155 Cr of equity in FY26, a debt-to-equity of 0.00. Operating profit covers the interest bill 45×. Over 5 years borrowings went from ₹0.0 Cr to ₹0.0 Cr. Capital spending ran ₹11.0 Cr across the last 3 of those years.

FY26: borrowings of ₹0.0 Cr against equity of ₹155 Cr — a debt-to-equity of 0.00. Operating profit covers the interest bill 45×. Over 5 years borrowings went from ₹0.0 Cr to ₹0.0 Cr while capital spending ran ₹11.0 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Sika Interplant Systems Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 71.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +0.5 points over 8 quarters to 3.3%; Promoters: +0.0 points over 8 quarters to 71.7%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Sika Interplant Systems Ltd: the Z-score reads 70.63. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 70.63 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 70.63.

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