Aerospace and defence manufacturer Sigma Advanced Systems Ltd. has emerged as one of the multibagger stocks, with its shares delivering a massive 4,684.87% return over five years, when the benchmark index Nifty 50 just gained 45.86% during the period, making the defence stock outperform the benchmark by roughly 102x over the period.
The stock was trading at Rs 727.30, up 4.99%, in Wednesday's session, which is also its latest 52-week high.
Operational Growth
During the June quarter, Sigma Advanced Systems reported consolidated revenue of Rs 374 crore, which is 16% up from Rs 323 crore in the March quarter.
Operational Ebitda increased 11% sequentially to Rs 61 crore, while the operating Ebitda margin stood at 16%. Profit after tax stood at Rs 38 crore during the quarter.
From the segment-wise lens, aerospace contributed Rs 229 crore to the June quarter revenue, while defence exports and domestic defence contributed Rs 104 crore and Rs 41 crore, respectively.
Rolls-Royce Deals, Defence Orders Boost Growth
Sigma's growing order book is giving investors more visibility on future growth. The company has over Rs 8,000 crore in orders, with more than 90% coming from international markets and contracts extending beyond seven years.
The steep rise came from its Rs 3,800 crore long-term agreement with Rolls-Royce, followed by a nearly £125 million (about Rs 1,600 crore) deal through its UK subsidiary Bromford Precision Solutions. The latter will expand Sigma's manufacturing capabilities for aero-engine rings, casings and other critical components.
The company is also expanding its defence business. It has secured around Rs 155 crore in orders for Indrajaal Ranger, its anti-drone patrol vehicle, including a Rs 145 crore border-security order.
Sigma has also grown through acquisitions of Bromford, Nasmyth and AS Strategic, while its investment in Indrajaal has widened its exposure to defence technology.
Together, the large international order book, long-term aerospace contracts and growing defence business have strengthened Sigma's growth outlook and helped shift its profile from a domestic defence supplier towards a broader global aerospace and defence player.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
