Due to this, there is no strong defense stock, the price increased by 254 percent in 4 months, the chest of investors filled

If you had bought shares of this defense company 5 years ago, today you would have been sitting at 41 times profit! We are talking about a small cap defense stock of Sika Interplant Systems Ltd which has given a shocking return of 4135 percent in the last five years.

New record is being created every month

Sika Interplant shares have been continuously reaching new heights since the beginning of June. This week, the stock rose by 6 per cent at the all-time high of 1,624.95. However, it also saw a decline on Friday. But even after this, in the last four months, this stock made a jump of 254 percent and an 85 percent gain in June has made it a favorite of retail investors. In the last three years, 1,065 percent of the return and about 7,000 percent in ten years has made this stock a classic multibagger.

Retail investors’ stake crossing 25 percent

According to the FY 2025 data, retail investors hold 25.2 percent in this company. At the same time, 71.7 percent shares have its promoters. This trend suggests that small investors have tremendous confidence in this stock.

Deal from France and UK companies

On June 3, Sika Interplant has signed a license agreement with Goodrich Activation Systems (France & UK). Under this, the company will now be able to work as maintenance, repair and overhell (MRO) of the flight control system. This deal is special because this has given the company approved to provide service on Indian registered aircraft and ships in neighboring countries.

Sika is fully prepared for growth

Sika Interplant is an engineering-focused company that works in aerospace, defense and automotive sectors. Its main business sectors include engineered projects and systems, interconnect solutions, electrical modules integration, mRO services and value added distribution. The company has obtained defense production license from the Government of India and is also an authorized Indian offset partner.

Companies like Sika are getting boost

India has set a $ 78.8 billion defense budget for 2024-25, which has become the third largest defense spending country in the world after the US and China. In the last decade, the government is constantly emphasizing on the modernization of the army. In the next 10 years, there are plans for capital expenditure of about $ 250 billion, which is a golden chance for companies like Sika.

Alert for investors

This strong performance of Sika Interplant Systems shows that India’s defense sector is no longer limited to the government, but can also become a source of big profits for small investors. If you do not have this stock in your portfolio, then it is time to think again that you are not missing the next multibagger?

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