NSEI:SIKKO

Stock Analysis Report

Executive Summary

Sikko Industries Limited manufactures and trades in urea and other organic fertilizers, and pesticides used for agriculture in India.

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Sikko Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.7%

SIKKO

1.6%

IN Chemicals

3.1%

IN Market


1 Year Return

-19.3%

SIKKO

15.2%

IN Chemicals

3.7%

IN Market

Return vs Industry: SIKKO underperformed the Indian Chemicals industry which returned 15.2% over the past year.

Return vs Market: SIKKO underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

SIKKOIndustryMarket
7 Day-3.7%1.6%3.1%
30 Day-15.2%7.7%5.7%
90 Day-12.3%10.5%1.4%
1 Year-19.3%-19.3%16.6%15.2%5.9%3.7%
3 Yearn/a34.9%30.7%22.3%16.0%
5 Yearn/a123.5%110.9%42.5%28.9%

Price Volatility Vs. Market

How volatile is Sikko Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sikko Industries undervalued compared to its fair value and its price relative to the market?

7.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate SIKKO's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate SIKKO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SIKKO is good value based on its PE Ratio (7.3x) compared to the Chemicals industry average (10.4x).

PE vs Market: SIKKO is good value based on its PE Ratio (7.3x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SIKKO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SIKKO is good value based on its PB Ratio (1x) compared to the IN Chemicals industry average (1.1x).


Next Steps

Future Growth

How is Sikko Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIKKO's forecast earnings growth (10.7% per year) is above the savings rate (7.6%).

Earnings vs Market: SIKKO's earnings (10.7% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: SIKKO's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if SIKKO's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if SIKKO's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SIKKO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sikko Industries performed over the past 5 years?

26.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SIKKO's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: SIKKO's earnings growth over the past year (70.3%) exceeds its 5-year average (26% per year).

Earnings vs Industry: SIKKO earnings growth over the past year (70.3%) exceeded the Chemicals industry 9.9%.


Return on Equity

High ROE: SIKKO's Return on Equity (14%) is considered low.


Return on Assets

ROA vs Industry: SIKKO's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: SIKKO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Sikko Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SIKKO's short term assets (₹296.7M) exceeds its short term liabilities (₹187.1M)

Long Term Liabilities: SIKKO's short term assets (296.7M) exceeds its long term liabilities (5.5M)


Debt to Equity History and Analysis

Debt Level: SIKKO's debt to equity ratio (64.4%) is considered high

Reducing Debt: SIKKO's debt to equity ratio has reduced from 95.2% to 64.4% over the past 5 years.

Debt Coverage: SIKKO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SIKKO's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet

Inventory Level: SIKKO has a high level of physical assets or inventory.

Debt Coverage by Assets: SIKKO's debt is covered by short term assets (assets are 3.222180x debt).


Next Steps

Dividend

What is Sikko Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SIKKO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SIKKO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SIKKO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SIKKO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SIKKO's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Sikko Industries's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jayantibhai Kumbhani (53yo)

2.8yrs

Tenure

₹3,900,000

Compensation

Mr. Jayantibhai Mohanbhai Kumbhani has been Managing Director at Sikko Industries Limited since January 12, 2017 and also has been its Executive Non-Independent Director since January 15, 2003. Mr. Kumbhan ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Jayantibhai's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Jayantibhai's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: SIKKO's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

50yo

Average Age

Experienced Board: SIKKO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ghanshyambhai Kumbhani (56yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: ₹3.90m
  • Jayantibhai Kumbhani (53yo)

    MD & Executive Non-Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹3.90m
  • Mukesh Shah (50yo)

    Chief Finance Officer

    • Tenure: 2.8yrs
    • Compensation: ₹563.36k
  • Narendra Solanki (57yo)

    General Manager

    • Tenure: 0yrs
  • Lata Dharmani

    Company Secretary & Compliance Officer

    • Tenure: 0.8yrs
    • Compensation: ₹121.84k
  • Vishal Mistry (35yo)

    Account Manager

    • Tenure: 0yrs

Board Members

  • Ghanshyambhai Kumbhani (56yo)

    Chairman

    • Tenure: 2.8yrs
    • Compensation: ₹3.90m
  • Jayantibhai Kumbhani (53yo)

    MD & Executive Non-Independent Director

    • Tenure: 2.8yrs
    • Compensation: ₹3.90m
  • Mamtaben Thumbar (37yo)

    Non-Executive & Independent Director

    • Tenure: 2.7yrs
  • Pravinbhai Kumbhani (50yo)

    Non-Executive Director

    • Tenure: 2.3yrs
  • Hasmukhbhai Vavaiya (46yo)

    Independent Director

    • Tenure: 2.4yrs

Company Information

Sikko Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sikko Industries Limited
  • Ticker: SIKKO
  • Exchange: NSEI
  • Founded: 1997
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: ₹147.280m
  • Shares outstanding: 5.60m
  • Website: https://www.sikkoindia.com

Number of Employees


Location

  • Sikko Industries Limited
  • 508, Iscon Elegance
  • Near Jain Temple
  • Ahmedabad
  • Gujarat
  • 380051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIKKONSEI (National Stock Exchange of India)YesEquity SharesININRApr 2017

Biography

Sikko Industries Limited manufactures and trades in urea and other organic fertilizers, and pesticides used for agriculture in India. The company offers bio agro chemicals, such as bio pesticides and fungi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:52
End of Day Share Price2019/10/18 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.