Sigachi Industries Limited (SIGACHI) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 0.23%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.40
• Revenue Growth: 27.03%
• EPS Growth: -151.48%
• Country: IN
• Employees: 991
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -2.63
• Shares Outstanding: 382,117,000
• 10 Day Avg. Volume: 4,418,173
• 30 Day Avg. Volume: 1,732,579
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹44.00
• Price Target Upside: 2.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹44.00 ▲(2.59% Upside)

Sigachi Industries Limited's overall stock score is primarily influenced by its strong financial performance, which is offset by technical indicators suggesting overbought conditions and a negative P/E ratio indicating valuation concerns. The company's robust revenue and profit growth are positive, but the lack of positive free cash flow and potential leverage risks are areas to watch. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's ability to expand its market presence and strengthen its position in the industry.

Profitability Margins

Strong profitability margins reflect effective cost control and operational efficiency, supporting long-term financial health.

Market Position

As a leading supplier in its niche, the company benefits from a strong market position, ensuring stable demand and customer loyalty.

Negative Factors

Free Cash Flow

Negative free cash flow can limit the company's ability to invest in growth opportunities and may necessitate reliance on external funding.

Leverage Risks

Elevated leverage levels could pose risks to financial stability, especially if interest rates rise or cash flow generation does not improve.

Earnings Growth

A significant decline in earnings per share growth indicates potential challenges in maintaining profitability, impacting investor confidence.

Sigachi Industries Limited Business Overview & Revenue Model

Company Description

Sigachi Industries Limited (SIGACHI) is a leading manufacturer and supplier of microcrystalline cellulose (MCC), a key excipient used in the pharmaceutical, food, and nutraceutical industries. The company operates within the chemical manufacturing sector, providing high-quality cellulose-based products that serve as binding, filling, and disintegrating agents in various formulations. Sigachi's extensive product line caters to both domestic and international markets, ensuring consistent quality and reliability for its clients.

How the Company Makes Money

Sigachi Industries Limited primarily generates revenue through the production and sale of microcrystalline cellulose (MCC). The company's key revenue streams include supplying MCC to pharmaceutical companies, food manufacturers, and nutraceutical producers, who use it as a critical component in their product formulations. By maintaining a strong focus on quality and consistency, Sigachi secures long-term contracts and relationships with clients, which contributes significantly to its earnings. Additionally, the company may engage in strategic partnerships or collaborations to expand its market reach and enhance its product offerings. However, specific details about such partnerships or additional revenue sources are not available.

Sigachi Industries Limited Financial Statement Overview

Summary

Sigachi Industries Limited exhibits robust revenue and profit growth with strong profitability margins, underscoring its operational efficiency. The balance sheet strengthens the company's financial foundation, although leverage levels should be monitored. Cash flow management presents areas for improvement, especially in generating positive free cash flow. Overall, the company is well-positioned but should focus on enhancing cash flow sustainability.

Income Statement

Sigachi Industries Limited has demonstrated strong revenue growth with a notable increase from 2024 to 2025. The gross profit margin remains robust, indicating efficient cost management. Consistently improving net profit margin and solid EBIT and EBITDA margins reflect sound profitability. However, the pace of margin improvements has moderated, which could be a potential area to monitor.

Balance Sheet

The company's balance sheet shows a healthy equity position with a solid equity ratio, indicating financial stability. The debt-to-equity ratio is manageable, though slightly elevated, suggesting potential leverage risks. Return on equity is commendable, showcasing effective use of equity capital to generate profits. Overall, the balance sheet is strong, but vigilance on leverage is advised.

Cash Flow

Operating cash flow has improved, but free cash flow remains negative due to high capital expenditures. While the operating cash flow to net income ratio is healthy, the free cash flow to net income ratio indicates a need for better cash management. The growth in financing cash flow suggests reliance on external funding, which could impact future flexibility.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.64B	4.88B	3.99B	2.50B	3.02B	1.93B
Gross Profit	2.02B	1.77B	1.73B	1.12B	1.64B	738.38M
EBITDA	1.13B	1.21B	858.35M	556.74M	653.97M	420.44M
Net Income	714.24M	695.63M	571.80M	400.37M	435.36M	302.60M
Balance Sheet
Total Assets	0.00	8.46B	6.94B	2.87B	3.74B	1.33B
Cash, Cash Equivalents and Short-Term Investments	480.25M	720.20M	570.57M	693.83M	396.73M	180.16M
Total Debt	0.00	1.42B	1.51B	349.03M	676.02M	209.27M
Total Liabilities	-4.82B	2.33B	2.53B	590.20M	1.05B	392.08M
Stockholders Equity	4.82B	6.01B	4.30B	2.28B	2.68B	941.99M
Cash Flow
Free Cash Flow	0.00	-242.98M	-722.97M	-184.80M	-716.99M	202.67M
Operating Cash Flow	0.00	190.32M	128.92M	58.50M	290.17M	295.51M
Investing Cash Flow	0.00	-975.84M	-1.61B	-628.58M	-918.52M	-114.32M
Financing Cash Flow	0.00	935.15M	1.72B	1.08B	262.08M	-106.92M

Sigachi Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SIGACHI, the sentiment is Positive. The current price of 42.89 is above the 20-day moving average (MA) of 32.27, above the 50-day MA of 36.11, and below the 200-day MA of 43.47, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 79.47 is Negative, neither overbought nor oversold. The STOCH value of 78.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SIGACHI.

Sigachi Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KHAICHEM	69 Neutral	₹12.55B	31.74		0.41%	64.35%	―
GANESHBE	65 Neutral	₹6.84B	17.24		―	-13.61%	-38.42%
Sector *	61 Neutral	$10.42B	7.39	-0.05%	2.86%	2.86%	-36.73%
SIGACHI	54 Neutral		19.54		0.23%	27.03%	-151.48%
INSILCO	―		―		―	―	―
SADHNANIQ	54 Neutral	₹3.65B	74.35		1.36%	-15.63%	3.19%
KRITI	46 Neutral	₹6.99B	206.34		0.15%	-18.41%	-139.53%

Sigachi Industries Limited Corporate Events

Sigachi Industries Releases Q2 2025 Monitoring Agency Report

Sigachi Industries Limited has released a Monitoring Agency Report for the quarter ending June 30, 2025, detailing the utilization of IPO proceeds and convertible share warrants. The report, prepared by Kotak Mahindra Bank Limited and Care Ratings Limited, provides insights into the company’s financial management and compliance with regulatory requirements, potentially impacting investor confidence and market positioning.

Sigachi Industries Faces Tragic Incident at Telangana Facility

Sigachi Industries Limited reported a tragic accident at its Pashamylaram facility in Telangana, resulting in the loss of 40 employees and injuries to 33 others. The company is actively managing emergency responses, supporting affected families, and cooperating with ongoing investigations, while clarifying that the incident was not due to a reactor explosion. Operations at the plant are suspended for about 90 days, and Sigachi has pledged compensation and medical support for victims, highlighting its commitment to safety and stakeholder support.