Sikko Industries Ltd. (SIKKO) AI Stock Analysis

• Market Cap: ₹2.41B
• Dividend Yield: N/A
• Average Volume (3M): 164.78K
• Price to Earnings (P/E): 44.1
• Beta (1Y): 1.33
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹121.00 ▲(2096.01% Upside)

Sikko Industries Ltd. has a moderate overall stock score driven primarily by strong technical momentum, despite financial performance challenges and high valuation concerns. The company's revenue growth is promising, but profitability and cash flow issues need addressing. The technical indicators suggest positive market sentiment, but the high P/E ratio indicates potential overvaluation.

Positive Factors

Revenue Growth

Steady revenue growth indicates a strong market position and effective product offerings, supporting long-term business sustainability.

Business Model Diversification

A diversified business model reduces dependency on a single revenue stream, enhancing resilience against market fluctuations.

Stable Balance Sheet

A stable balance sheet with manageable debt levels ensures financial flexibility and supports strategic growth initiatives.

Negative Factors

Profitability Challenges

Inconsistent profitability can hinder reinvestment and growth opportunities, impacting long-term financial health.

Cash Flow Issues

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and investments.

Declining Gross Profit Margin

A declining gross profit margin suggests increasing costs, which could pressure profitability if not managed effectively.

Sikko Industries Ltd. Business Overview & Revenue Model

Company Description

Sikko Industries Ltd. (SIKKO) is a diversified industrial company primarily engaged in the manufacturing and distribution of high-quality components and systems for various sectors, including automotive, aerospace, and industrial machinery. The company focuses on innovation and sustainability, offering a range of products such as precision machined parts, composite materials, and advanced manufacturing solutions. With a commitment to excellence, SIKKO aims to enhance operational efficiencies and deliver value to its customers through cutting-edge technology and engineering expertise.

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

Sikko Industries Ltd. shows growth in revenue over the years but faces challenges in maintaining profitability consistency. The balance sheet remains stable with a healthy equity ratio, though cash flow issues could pose risks if not addressed. Overall, the company exhibits potential for growth but needs to focus on improving profitability and cash flow management to ensure long-term financial health.

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: Positive
• Last Price: 5.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 5.51 is above the 20-day moving average (MA) of 5.47, above the 50-day MA of 5.35, and above the 200-day MA of 4.19, indicating a bullish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 32.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹1.50B	5.53	―	0.91%	19.61%	130.56%
SIKKO	63 Neutral	₹2.41B	44.10	―	―	14.93%	-24.77%
SECMARK	62 Neutral	₹1.22B	31.23	―	―	28.58%	68.42%
MAHESHWARI	61 Neutral	₹1.44B	7.69	―	―	2.13%	35.04%
HPIL	59 Neutral	₹1.59B	162.06	―	0.37%	42.23%	-50.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
AHLWEST	45 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.

Sikko Industries Announces Share Subdivision and Capital Increase Plans

Sikko Industries Limited announced significant corporate actions following a board meeting held on October 18, 2025. The company plans to subdivide its equity shares and issue bonus shares, subject to shareholder approval. Additionally, the company aims to amend its Memorandum of Association to increase its authorized share capital from Rs. 25 crore to Rs. 45 crore. These actions are intended to enhance shareholder value and support the company’s growth strategy. An Extra-Ordinary General Meeting is scheduled for November 13, 2025, to seek shareholder approval for these initiatives.

Sikko Industries Confirms Compliance with SEBI Regulations for Q3 2025

Sikko Industries Limited has submitted a confirmation certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. The announcement confirms that securities received for dematerialization were processed and listed on stock exchanges, ensuring compliance with regulatory requirements, which is crucial for maintaining investor trust and operational transparency.

Sikko Industries Announces Trading Window Closure for Insiders

Sikko Industries Ltd. has announced the closure of its trading window for insiders, in accordance with SEBI regulations and the company’s internal code for preventing insider trading. This measure will be in effect from October 1, 2025, until 48 hours after the publication of the company’s unaudited financial results for the quarter ending September 30, 2025. This decision aligns with regulatory requirements and aims to ensure transparency and fairness in trading practices.