Sika Interplant System is one of the few listed players in Aeronautics and defense arena .Government's move to bring more privatization in these sectors will improve the prospects of companies like Sika Interplant. This Company is primarily engaged in the business of manufacturing and rendering of services in engineering products, projects and designs for aeronautics and marine sectors. Company’s niche product and service portfolio is really a good point to note. With the growing Indian market in Aerospace and Defence, India is seen as one of the target business markets for the international Aerospace and Defence industry. In this scenario international Aerospace and defence companies want to gain a competitive edge by outsourcing jobs to Indian industry and also provide Indian customers with MRO support in India. Sika’s wide network and good relations with international Aerospace and defence companies is an added advantage for this potential business. SIKA would be able to capitalise on these opportunities. It has two subsidiaries Nfotec Digital Engineering and Micronel .Both are operating in related fields. Now SIKA is going for upgradation and expansion of its facilities at Bangalore for Design, Supply, certification and MRO(maintenance, repair and overhaul) for Aerospace and Defence. Financial closure of this project is already completed.Even though the current business is small in size Over next 5-10 years, there would be at least 500 aircrafts and 1,000 helicopters flying in the country ,this will brighten the prospects of a niche company like SIKA Interplant. Sika has obtained Industrial License for Government of India for Defence Production. Leading Multi National Companies have also approved SIKA for Aerospace a Defence production and MRO.SIKA has an equity base of 4.2 crore and more than 75% of this is held by the promoters itself ,which makes it a low liquid counter. Last year company posted an EPS of Rs.6 and declared a dividend of 6%.Even if the performance in the nine month period of this FY is not encouraging ,Company’s dedicated efforts for expansion and upgradation of its Bangalore facility and ongoing developments in aeronautics and defense sector will bring more business forward.This is a niche unknown company and most of the investors are not familiar with its activities. When this story unfold and if things are moving as per the expectations of the management,this will be a multi bagger even from current level. CMP Rs.69
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INVESTORS ARE REQUESTED TO MAKE A DETAILED STUDY ABOUT THIS COMPANY ,SINCE IT IS A NICHE ,UNIQUE AND UNKNOWN PLAYER AND IN AN INDUSTRY WITH HUGE POTENTIAL IN FUTURE.
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