Microcap aerospace & defence stock zooms 36% in 2 days; here's why

Shares of Sika Interplant Systems (SIKA) zoomed 20 per cent to hit a new high of ₹1,125.30 on the BSE in Wednesday's intra-day trade amid heavy volumes

Share price of Sika Interplant Systems today: Shares of Sika Interplant Systems (SIKA) zoomed 20 per cent to hit a new high of ₹1,125.3 on the BSE in Wednesday’s intra-day trade amid heavy volumes. In the past two trading days, the stock price of the microcap company engaged in aerospace and defence business has surged 36 per cent.

 

At 12:27 PM, SIKA was quoting 18 per cent higher at ₹1,109.30, as compared to a 0.24 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped over fivefold, with 375,000 shares changing hands on the BSE, the exchange data shows. The company’s market capitalisation stood at ₹2,345 crore.

 

Meanwhile, the stock price of SIKA has more than doubled or zoomed 181 from its January 2025 low of ₹400 (adjusted to a 1:5 stock split) on the BSE. 

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License agreement with Collins

SIKA on Tuesday, June 3, 2025, informed that the company 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).

 

Under this agreement, SIKA will be licensed 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. This collaboration aligns with SIKA’s strategic objective of expanding its MRO capabilities to better serve aviation and aerospace customers in India and the region, the company said. 

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 stand-offs seen in recent years on the Indo-China border have renewed the urgency to build capability and capacity for India’s defence industry. The geopolitical situation in South Asia and the Indian Ocean region, as well as the wider theatre of Southeast Asia and the South China Sea, has important implications for the defence sector, SIKA said in its FY24 annual report.

 

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 emphasis on modernisation of the armed forces, which is expected to result in capital expenditure of about USD 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. 

Opportunities

The country’s Defence expenditure has been punctuated by big-ticket deals and modernisation programs, the latter in response to the urgent need to enhance the deterrent and operational capabilities of the armed forces through upgradation/modernisation of existing equipment, as well as additional acquisitions of ‘state of the art’ equipment. The large scale of the market provides a significant opportunity for foreign original equipment manufacturers (OEMs), Indian industries and SMEs.

 

The need for a self-reliant Defence sector and a sharp focus on minimising dependence on imports is seeing the continued opening up of the sector for private participation, SIKA said in its annual report.

About Sika Interplant Systems Limited (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.

 

In recent years, SIKA has been focused on building advanced facilities to expand its operational base to keep pace with the fast-paced development of the AD&S sector in India, and SIKA is well-positioned to meet the requirements of both potential international partners and domestic projects.

 

Within the automotive sector, the company continues to undertake projects to supply critical capital equipment to a significant number of the major automobile manufacturers across the country.