Sikko Industries Ltd. (SIKKO) AI Stock Analysis

• Market Cap: ₹1.82B
• Dividend Yield: N/A
• Average Volume (3M): 164.78K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 1.46
• Revenue Growth: 14.93%
• EPS Growth: -24.77%
• Country: IN
• Employees: 64
• Sector: Services
• Sector Strength: N/A
• Industry: Agricultural Inputs
• EPS (TTM): 0.07
• Shares Outstanding: 436,800,000
• 10 Day Avg. Volume: 122,582
• 30 Day Avg. Volume: 164,776
• PEG Ratio: -72.26
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 2.07
• P/FCF Ratio: -3.11
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹4.00 ▼(-18.70% Downside)

The score is primarily driven by mixed financial performance: steady revenue growth and a stable balance sheet are outweighed by weak cash flow and inconsistent profitability. Technicals remain bearish with the stock below key moving averages, though oversold indicators reduce downside risk near-term. Valuation is a headwind due to a high P/E and no dividend yield data.

Positive Factors

Steady revenue growth

Consistent mid-teens revenue growth through 2020–2025 demonstrates resilient demand for the firm's agricultural inputs. Durable top-line expansion improves capacity to absorb cost shocks, supports incremental investment in operations, and underpins potential margin recovery if cost control follows.

Manageable leverage and solid equity backing

Controlled debt levels and a strong equity ratio reduce refinancing and solvency risk across commodity cycles. A solid balance sheet provides flexibility to fund capex or working capital needs without excessive external financing, enabling steadier execution of strategic initiatives.

Lean operating headcount

A small, focused workforce suggests a lean cost base and potentially lower fixed overhead. For an agricultural inputs business this can improve operating leverage as sales scale, enabling the company to preserve margins through seasonality and redeploy capital to distribution or product investments.

Negative Factors

Negative free cash flow

Repeated negative free cash flow weakens liquidity and limits internal funding for growth or debt reduction. Persistent FCF deficits force reliance on external financing, increasing dilution or leverage risk, and constrain the company’s ability to invest in distribution, R&D, or margin-improving initiatives.

Declining gross and variable margins

A falling gross margin and volatile operating margins indicate rising input costs or pricing pressure that erode core profitability. Structurally weaker margins reduce cash generation capacity and return on capital, making long-term growth less sustainable without cost or pricing fixes.

Earnings contraction and margin inconsistency

A sharp EPS decline and inconsistent net margins point to earnings-quality issues and operational sensitivity. Persistent profit volatility complicates planning and investor confidence, signalling management must stabilize cost structure or product mix to deliver durable, predictable returns.

Sikko Industries Ltd. Business Overview & Revenue Model

Company Description

Sikko Industries Limited manufactures and trades in bio-agro chemicals, pesticides, fertilizers, seeds, sprayers, packaging, machineries, and FMCG products for agriculture in India. It offers organic agro chemicals, such as organic pesticides and fungicides, sticking agents, organic plant growth promoters, and animal repellents; chemical fertilizer products, which include chelated, NPK, sulphur, and water soluble fertilizers; and organic agro products. The company also provides pesticides, fungicides, weedicides, and plant growth regulators; agricultural sprayers; vegetable and field crop seeds; and household products. It exports its products to Sri Lanka, Ivory Coast, Togo, Iran, Ghana, and Madagascar. The company was formerly known as Sikko Sprayers Limited and changed its name to Sikko Industries Limited in March 2010. Sikko Industries Limited was founded in 1997 and is based in Ahmedabad, India.

How the Company Makes Money

Sikko Industries Ltd. generates revenue through multiple channels, including direct sales of manufactured components, long-term contracts with major industrial clients, and strategic partnerships with companies in complementary sectors. Key revenue streams include the sale of precision parts to the automotive and aerospace industries, which account for a significant portion of its income. Additionally, SIKKO engages in research and development to create innovative products that meet evolving market demands, further enhancing its revenue potential. The company also benefits from its strong relationships with suppliers and distributors, ensuring a steady flow of orders and repeat business from satisfied customers.

Sikko Industries Ltd. Financial Statement Overview

Summary

Revenue growth is steady, supported by a stable balance sheet and manageable leverage, but profitability has been inconsistent and margins have weakened. Cash flow is the key drag, with negative free cash flow in multiple periods and volatile cash conversion raising liquidity and earnings-quality concerns.

Income Statement

The company has demonstrated a steady revenue growth with a notable increase from 2020 to 2025. However, the net profit margin has been inconsistent, showing fluctuations which suggest volatility in profitability. The gross profit margin has declined over the years, indicating rising cost pressures. The EBIT and EBITDA margins have also shown variability, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio remains manageable, indicating a controlled leverage situation. The company's equity ratio suggests solid asset backing by shareholder equity. However, the return on equity is moderate, indicating room for improvement in generating returns for shareholders.

Cash Flow

The cash flow situation is concerning with negative free cash flow observed in multiple periods, indicating potential liquidity issues. The operating cash flow to net income ratio shows volatility, questioning the sustainability of earnings. The free cash flow to net income ratio is also not favorable, suggesting challenges in converting profits to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	639.74M	617.48M	612.87M	494.62M	507.98M	388.41M
Gross Profit	175.54M	115.68M	163.28M	84.21M	113.46M	87.09M
EBITDA	77.97M	71.00M	75.61M	50.85M	37.61M	45.37M
Net Income	47.01M	42.71M	40.64M	28.93M	18.77M	25.98M
Balance Sheet
Total Assets	0.00	1.08B	516.91M	454.95M	366.96M	446.51M
Cash, Cash Equivalents and Short-Term Investments	1.39M	1.96M	823.00K	1.31M	2.03M	1.36M
Total Debt	0.00	41.16M	58.90M	86.14M	16.37M	67.80M
Total Liabilities	-813.83M	267.38M	238.17M	216.85M	155.26M	253.58M
Stockholders Equity	813.83M	813.83M	278.75M	238.10M	211.70M	192.93M
Cash Flow
Free Cash Flow	0.00	-409.90M	4.43M	-61.47M	57.59M	-1.60M
Operating Cash Flow	0.00	-311.57M	13.88M	-40.46M	63.64M	2.41M
Investing Cash Flow	0.00	-162.50M	8.70M	-19.54M	-6.11M	-3.94M
Financing Cash Flow	0.00	474.63M	-34.89M	62.83M	-56.86M	-1.41M

Sikko Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SIKKO, the sentiment is Negative. The current price of 4.92 is above the 20-day moving average (MA) of 4.34, below the 50-day MA of 5.01, and above the 200-day MA of 4.30, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SIKKO.

Sikko Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUSOMENT	71 Outperform	₹1.59B	5.73	―	0.88%	19.61%	130.56%
MAHESHWARI	69 Neutral	₹1.31B	6.92	―	―	2.13%	35.04%
SECMARK	62 Neutral	₹1.08B	27.32	―	―	28.58%	68.42%
HPIL	59 Neutral	₹1.54B	160.69	―	0.37%	42.23%	-50.43%
SIKKO	56 Neutral	₹1.82B	32.76	―	―	14.93%	-24.77%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
AHLWEST	49 Neutral	₹1.65B	―	―	―	―	―

Sikko Industries Ltd. Corporate Events

Sikko Industries Announces Bonus Share Allotment Record Date

Sikko Industries Ltd. has announced that December 8, 2025, will be the record date for the allotment of bonus shares to its shareholders. This decision, approved in an extraordinary general meeting, is part of the company’s strategy to reward its shareholders and potentially enhance its market appeal, reflecting positively on its financial health and commitment to stakeholder value.