Aerospace & defence stock up 86% so far in June; zooms 146% from May low

Shares of Sika Interplant Systems (SIKA) hit a new high of ₹1,537.30, as they surged 10 per cent on the BSE in Wednesday's intra-day trade on healthy business outlook.

Share price of SIKA Interplant Systems today: Shares of Sika Interplant Systems (SIKA) hit a new high of ₹1,537.30, as the scrip surged 10 per cent on the BSE in Wednesday’s intra-day trade on healthy business outlook. 

 

Thus far in June, the stock price of this aerospace & defence (A&D) company has soared 87 per cent. It has more than doubled or zoomed 146 per cent from its previous month low of ₹626.10 touched on May 7, 2025. It has skyrocketed 195 per cent from its May month low of ₹520.30 on the BSE.

 

At 9:52 AM; SIKA was quoting 9 per cent higher at ₹1,526, as compared to 0.25 per cent rise in the BSE Sensex. Around 176,000 shares have changed hands on the BSE so far as compared to an average sub 300,000 shares were traded in the past two weeks.

 

Licence agreement with Collins

 

SIKA, on June 3, 2025, said that the company has entered into a Licence Agreement with Goodrich Actuation Systems SAS (France) and Goodrich Actuation Systems Limited (UK), each a part of Collins Aerospace (Collins).

 

Under this agreement, SIKA will be licenced to undertake maintenance, repair and overhaul (MRO) of specific primary flight control actuation part numbers (components) for which Collins is the original equipment manufacturer (OEM). These Components are standard installations on all Airbus A320/A321 series aircraft. The company said as per the License Agreement, SIKA is authorised to service Components from aircraft registered in India and select neighbouring countries as defined in the agreement.  

Catch Stock Market LIVE Updates 

Industry structure and development

 

India’s geopolitical scenario and compulsions, real or perceived, are continuing to drive the development of its A&D industry. The last decade has seen India emerge as one of the most attractive A&D markets in the world given the Ministry of Defence’s (MoD) continued focus  on modernisation of the armed forces, which is expected to result in capital expenditure of about $250 billion over the next 10 years. There is a broad acknowledgement that while the man behind the machine remains motivated, some machines being manned need an upgrade.

 

The overall defence allocation has increased by about $6.85 billion, with an increase of 10 per cent in the overall defence budget of FY 2025-26 as compared to the original budget of FY 2024-25, while the increase when compared to revised estimate of FY 2024- 25 is about 6 per cent.

 

As India continues to be one of the top defence spending countries in the world, a dire need to reduce import dependency and enhance domestic production has been made a priority by the GoI.

SIKA stock outlook

 

The overall outlook for the financial year 2025-26 (FY26) is optimistic even considering the impact of the uncertainties in the global economy. The management expects that the combination of a continued increase in domestic defence spending and the opportunity from offsets aided by the 1.5x multiplier made available for MSMEs coupled with the balancing investments made in expanding the company’s operating base will provide SIKA with a solid platform for sustained and consistent growth in the company’s business over the medium term.

  

About SIKA 

 

SIKA is actively involved in four main areas, namely, engineering (design and development); manufacturing, assembly and testing; projects and systems integration; and maintenance, repair and overhaul (MRO).

 

Additionally, the company’s in-house capabilities in technology development and production are complemented by tie-ups with international partners. The majority of the Company’s business is catered to serving the Aerospace, Defence & Space (AD&S) and automotive sectors.