Check Before You Invest : Sigma Advanced Systems Ltd

Snapshot

Q.1 Which industry/sub-sector does Sigma Advanced Systems Ltd belong to?

Sigma Advanced Systems Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Defence segment.

Q.2 Is Sigma Advanced Systems Ltd a good quality company?

Sigma Advanced Systems Ltd is a average quality company, based on a somewhat consistent 8-year financial track record.

Q.3 Is Sigma Advanced Systems Ltd undervalued or overvalued?

Sigma Advanced Systems Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Sigma Advanced Systems Ltd a good buy now?

Sigma Advanced Systems Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -100%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Return on capital employed is 8.3% for FY-2025, which is in line with its 5-year historical median of 7.95%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Return on Asset is 2.06%, which is in line with its 5-year historical median of 2.06%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Return on equity is 4.71% for FY-2025, which is above its 5-year historical median of 4.39%, indicating the business is making better use of its shareholders capital.

Q.5 Gross Profit margin of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 673.2% for FY-2025, which is above its 5-year median of 29.2%, indicating increasing margins.

Q.6 Operating Profit Margin of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is above its 5-year median of -19.66% indicating increasing margins.

Q.7 Net Profit Margin of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Net Profit Margin is -% for FY-2025, is below with its 5-year median of 8.43%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	673.2	29.2
Operating Profit Margin	-	-19.66
Net Profit Margin	-	8.43

Q.8 Debt to Equity ratio of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Debt-to-Equity ratio is 0.75, which is above with the industry average of 0.29, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Sigma Advanced Systems Ltd?

Sigma Advanced Systems Ltd Debt to cash flow from operations is 3.71, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sigma Advanced Systems Ltd?

Promoters hold 71.22% of the Sigma Advanced Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sigma Advanced Systems Ltd vs industry peers?

Sigma Advanced Systems Ltd revenue CAGR is -100.00%, compared to the industry median CAGR of 27.6%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	27.6
Gross Profit Growth	18.2	33
Operating Profit Growth	0	27.2
Net Profit Growth	-	33.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	-	0.56
ROE	4.71	12.34
ROCE	8.3	15.01
Cash Conversion Cycle (days)	-	155

Valuation & price assessment

Q.1 Stock return of Sigma Advanced Systems Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 37.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	37.4%	86.8%	106.7%	317.7%

Q.3 Valuation ratios of Sigma Advanced Systems Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	32.98	48.85	64.64
Price to Book	11.6	2.32	7.08
Price to Sales	177.31	24.60	8.12
EV to EBITDA	25.32	21.39	33.53

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