Retail investors' favourite defence stock delivers explosive 4135% return in 5 years. Is it in your portfolio?

Multibagger small-cap defence stock in focus: Maintaining its remarkable rally, shares of Sika Interplant Systems surged another 6% to hit a fresh all-time high of ₹1,624.95 apiece in an otherwise subdued session. 

The stock has been consistently hitting record highs since the beginning of June, delivering a phenomenal gain of 85% so far this month. It has now extended its winning streak to a fourth consecutive month, delivering a cumulative return of 254% in under four months.

This latest rally has also rewarded long-term shareholders handsomely. The stock has skyrocketed 1,065% over the past three years and an astounding 4,135% over five years. Investors who have held the stock for the past decade have seen its value soar by nearly 7,000%.

As of FY25, retail investors held a 25.2% stake in the company, while the majority 71.7% stake was held by the promoters.

On June 3, the company entered into a license agreement with Goodrich Actuation Systems SAS (France) and Goodrich Actuation Systems Limited (UK), both part of Collins Aerospace.

Under the agreement, the company is licensed to carry out maintenance, repair, and overhaul (MRO) of specific primary flight control actuation part numbers for which Collins is the original equipment manufacturer.

SIKA is also authorized to service components from aircraft registered in India and select neighboring countries, according to the company’s regulatory filing.

Strengthening capabilities to meet growing A&D demand

SIKA is an engineering-driven company focused on India’s Aerospace, Defence & Space (A&D) and Automotive sectors. Its core business lines include engineered projects and systems, interconnect solutions and electrical module integration, MRO services, and value-added distribution. The company is also a qualified Indian Offset Partner with a license for defence production from the Government of India.

In recent years, the company has invested in advanced facilities to expand its operational footprint in line with the rapid development of the A&D sector in India. SIKA believes it is well-positioned to meet the demands of both domestic projects and international partnerships.

Over the past decade, India has emerged as one of the world’s most attractive A&D markets, driven by the Ministry of Defence’s ongoing focus on modernising the armed forces. This is expected to lead to capital expenditure of approximately USD 250 billion over the next 10 years.

With the world’s third-largest armed forces, India has increased its defence budget for 2024–25 to around USD 78.8 billion, making it the third-largest defence spender globally—behind only the US and China. This accounts for nearly 2% of GDP and about 13% of total government expenditure. Defence spending has consistently remained between 13–14% of the Central Government’s annual budget for the past six years.

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