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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sikko Industries Ltd

About the Company - Sikko Industries Ltd

Sikko Industries Ltd. is a Public Limited Listed company incorporated on 08/02/2000 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L51909GJ2000PLC037329 and registration number is 037329. Currently Company is involved in the business activities of Manufacture of pesticides and other agrochemical products. Company’s Total Operating Revenue is Rs. 51.03 Cr. and Equity Capital is Rs. 11.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersNo.508, Iscon Eligance, Ahmedabad Gujarat 380051compliance@sikkoindia.com
http://www.sikkoindia.com
Management
NamePosition Held
Mr. Ghanshyambhai KumbhaniChairman & Wholetime Director
Mr. Jayantibhai KumbhaniManaging Director
Mrs. Alpaben KumbhaniExecutive Director
Mr. Rupen PatelIndependent Director
Mrs. Mamtaben ThumbarIndependent Director
Mr. Hasmukh VavaiyaIndependent Director

Sikko Industries Ltd. Share Price Update

Share PriceValue
Today₹79.85
Previous Day₹81.70

Basic Stock Data of Sikko Industries Ltd

Market Cap 141 Cr.
Current Price 83.8
High / Low118/54.6
Stock P/E46.9
Book Value 14.2
Dividend Yield0.18 %
ROCE16.3 %
ROE12.8 %
Face Value 10.0

Data Source: screener.in

Competitors of Sikko Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
National Fertilizer Ltd 5,036 Cr. 103130/60.1 44.82.72 %15.6 %19.8 % 10.0
Fertilizers & Chemicals Travancore Ltd 53,652 Cr. 829909/192123 21.80.12 %30.3 %62.5 % 10.0
Rashtriya Chemicals & Fertilizers Ltd (RCF) 8,234 Cr. 149190/89.542.2 85.33.55 %21.2 %21.2 % 10.0
Gujarat State Fertilizer & Chemicals Ltd 9,209 Cr. 231322/11612.4 3074.33 %13.4 %10.9 % 2.00
Chambal Fertilisers & Chemicals Ltd 15,402 Cr. 370403/24812.2 1852.03 %16.0 %14.9 % 10.0
Industry Average18 Cr336.437.96128.782.55%19.3%25.86%8.4

Sikko Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales19.658.7918.2810.4312.6112.3615.6317.4215.0810.127.0514.5918.85
Expenses15.288.2418.2914.136.4411.6415.2716.6512.978.197.0413.6816.45
Operating Profit4.370.55-0.01-3.706.170.720.360.772.111.930.010.912.40
OPM %22.24%6.26%-0.05%-35.47%48.93%5.83%2.30%4.42%13.99%19.07%0.14%6.24%12.73%
Other Income0.500.011.220.550.110.65-1.090.040.030.120.070.020.01
Interest0.050.070.190.130.150.160.100.050.070.120.200.160.14
Depreciation0.220.110.220.130.170.150.180.170.190.120.100.110.12
Profit before tax4.600.380.80-3.415.961.06-1.010.591.881.81-0.220.662.15
Tax %23.70%28.95%28.75%0.29%12.08%28.30%27.72%32.20%10.11%33.15%-81.82%25.76%25.12%
Net Profit3.510.270.58-3.405.240.77-0.730.401.691.21-0.410.481.62
EPS in Rs2.090.160.35-2.023.120.46-0.430.241.010.72-0.240.290.96

Sikko Industries Ltd Quarterly Chart

Sikko Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales13.408.5211.1511.2120.0715.8725.5425.5130.4938.8450.5149.2150.61
Expenses11.016.068.249.8419.8315.3822.7422.7426.8936.2146.9544.3845.36
Operating Profit2.392.462.911.370.240.492.802.773.602.633.564.835.25
OPM %17.84%28.87%26.10%12.22%1.20%3.09%10.96%10.86%11.81%6.77%7.05%9.82%10.37%
Other Income0.020.020.040.211.211.530.621.181.081.910.220.250.22
Interest0.530.380.440.480.600.430.210.570.570.290.540.440.62
Depreciation0.640.680.631.140.910.710.710.840.700.600.630.590.45
Profit before tax1.241.421.88-0.04-0.060.882.502.543.413.652.614.054.40
Tax %58.87%17.61%31.91%25.00%-533.33%54.55%53.20%20.87%28.74%29.32%27.97%28.64%
Net Profit0.521.171.29-0.03-0.380.401.182.012.442.601.882.892.90
EPS in Rs0.871.952.15-0.05-0.630.330.701.201.451.551.121.721.73
Dividend Payout %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%8.72%

Sikko Industries Ltd Profit & Loss Yearly Chart

Sikko Industries Ltd Growth

Compounded Sales Growth
10 Years:19%
5 Years:14%
3 Years:17%
TTM:-7%
Compounded Profit Growth
10 Years:9%
5 Years:20%
3 Years:6%
TTM:17%
Stock Price CAGR
10 Years:%
5 Years:50%
3 Years:117%
1 Year:-9%
Return on Equity
10 Years:12%
5 Years:13%
3 Years:12%
Last Year:13%

Sikko Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2.002.002.002.002.004.005.605.605.6011.2011.2016.8016.80
Reserves1.042.203.473.413.692.316.548.7111.148.099.977.019.11
Borrowings4.483.374.543.935.527.034.369.216.636.781.648.613.28
Other Liabilities4.023.235.155.8910.187.4910.6510.0415.5516.3713.8913.0723.43
Total Liabilities11.5410.8015.1615.2321.3920.8327.1533.5638.9242.4436.7045.4952.62
Fixed Assets5.745.305.194.313.543.074.093.803.493.303.284.765.03
CWIP0.620.000.000.000.000.000.000.000.000.000.000.000.00
Investments0.000.000.000.000.000.000.000.000.000.000.000.000.00
Other Assets5.185.509.9710.9217.8517.7623.0629.7635.4339.1433.4240.7347.59
Total Assets11.5410.8015.1615.2321.3920.8327.1533.5638.9242.4436.7045.4952.62

Sikko Industries Ltd Reserves and Borrowings Chart

Sikko Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1.411.212.970.79-0.021.09-2.93-0.610.680.246.36-4.05
Cash from Investing Activity -1.78-0.25-3.11-0.25-0.14-0.24-1.21-0.56-0.39-0.39-0.61-1.95
Cash from Financing Activity 0.42-1.490.73-1.080.151.661.684.29-3.11-0.14-5.696.28
Net Cash Flow0.04-0.520.60-0.54-0.012.50-2.463.12-2.83-0.290.070.28

Sikko Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days49.5765.5591.9977.17147.49123.28135.34174.70230.56201.76142.14179.57
Inventory Days104.02336.03192.64246.32137.29176.16196.56207.57209.18132.1168.6991.57
Days Payable51.5477.63144.84149.27198.38195.81164.24129.25192.47117.3753.9262.67
Cash Conversion Cycle102.05323.94139.78174.2286.40103.63167.66253.03247.28216.50156.91208.47
Working Capital Days31.87127.2487.08101.26133.67169.05177.64233.22230.92212.29138.96200.64
ROCE %24.53%23.86%26.39%4.55%5.26%10.67%18.16%15.54%16.98%15.94%12.89%16.26%

Sikko Industries Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

Sikko Industries Ltd ROCE Trend

Sikko Industries Ltd EPS Trend

Sikko Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.721.684.494.353.59
Diluted EPS (Rs.)1.721.684.494.353.59
Cash EPS (Rs.)2.072.232.855.605.08
Book Value[Excl.RevalReserv]/Share (Rs.)14.1718.9017.2329.8925.55
Book Value[Incl.RevalReserv]/Share (Rs.)14.1718.9017.2329.8925.55
Dividend / Share (Rs.)0.150.000.000.000.00
Revenue From Operations / Share (Rs.)29.5745.5635.4157.1248.02
PBDIT / Share (Rs.)3.033.374.058.367.04
PBIT / Share (Rs.)2.672.813.527.115.54
PBT / Share (Rs.)2.412.333.276.094.53
Net Profit / Share (Rs.)1.721.682.324.353.59
PBDIT Margin (%)10.237.4011.4514.6314.66
PBIT Margin (%)9.056.179.9512.4411.53
PBT Margin (%)8.155.119.2210.669.43
Net Profit Margin (%)5.823.676.557.617.46
Return on Networth / Equity (%)12.148.8613.4614.5414.03
Return on Capital Employeed (%)17.8014.4820.2623.2520.88
Return On Assets (%)6.355.115.816.255.98
Long Term Debt / Equity (X)0.060.020.010.010.03
Total Debt / Equity (X)0.360.070.340.380.63
Asset Turnover Ratio (%)1.211.250.940.880.89
Current Ratio (X)2.012.231.641.621.59
Quick Ratio (X)1.591.741.211.171.16
Inventory Turnover Ratio (X)4.444.292.862.121.12
Interest Coverage Ratio (X)11.496.9615.798.206.95
Interest Coverage Ratio (Post Tax) (X)7.544.4610.045.274.54
Enterprise Value (Cr.)140.6862.4734.7816.7023.14
EV / Net Operating Revenue (X)2.831.220.870.520.86
EV / EBITDA (X)27.6616.547.663.575.87
MarketCap / Net Operating Revenue (X)2.671.200.710.330.64
Price / BV (X)5.572.881.470.631.21
Price / Net Operating Revenue (X)2.671.200.710.330.64
EarningsYield0.020.030.090.220.11

Sikko Industries Ltd Profitability Ratios (%)

Sikko Industries Ltd Liquidity Ratios

Sikko Industries Ltd Liquidity Ratios (%)

Sikko Industries Ltd Interest Coverage Ratios (X)

Sikko Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sikko Industries Ltd

Fair Value: ₹85.40

The stock is undervalued by 1.91% compared to the current price ₹83.8

*Investments are subject to market risks

Strength and Weakness of Sikko Industries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.92%, which is a positive sign.
  2. The company has higher reserves (5.90 cr) compared to borrowings (5.34 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (26.99 cr) and profit (2.19 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 5.17 and average Dividend Yield of 9.83%.
  2. The stock has a high average Working Capital Days of 153.65, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 181.66, which may not be favorable.

Should I Buy Sikko Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sikko Industries Ltd:
    1. Net Profit Margin: 5.82%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.80% (Industry Average ROCE: 20.64%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 7.54
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.59
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 44.4 (Industry average Stock P/E: 32.08)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.36
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sikko Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE