According to BSE data, Sigma Advanced Systems has experienced significant volatility in recent trading sessions. The stock dropped 5% to hit the lower circuit of ₹914.85 on Tuesday, 13 October, marking the fourth consecutive session of lower circuit hits. The stock had previously hit lower circuits on Thursday, Friday, and Monday as well, indicating sustained selling pressure. At the current market price of ₹914.85, the stock has lost nearly 19% over the last six consecutive sessions, with the defence stock looking set to extend its losing streak for the sixth consecutive session.
Despite the recent correction, Sigma Advanced Systems has delivered exceptional returns to investors over extended periods. As reported by BSE data, the stock has soared 497% over the last one year, hitting a 52-week high of ₹1,165 on 6 October and a 52-week low of ₹139.30 on 16 March this year. The company's long-term performance is even more impressive, with returns of 1,286% over two years, 4,665% over five years, and 4,315% over 10 years. An investment of just ₹2.30 lakh a decade ago would be worth over ₹1 crore today, highlighting the stock's remarkable compounding power despite current volatility.
Market experts have raised concerns about the stock's current valuation despite its strong fundamentals. According to Ravi Singh, Chief Research Officer at Master Capital Services, the company's ₹8,000 crore-plus order book and over 90% international orders highlight strong business opportunities. However, Singh noted that the stock trades at a P/E of around 105 times, making valuations appear expensive compared with its current revenue of ₹492 crore in FY26. Vinit Bolinjkar from Ventura recommends holding existing shares while tracking order execution and margin delivery, emphasizing that the growth opportunity is meaningful as the company builds an integrated aerospace and defence platform. Experts find the company's growth potential attractive but appear wary of the stock's stretched valuations.
Technical experts provide mixed signals for the stock's near-term prospects. Vipin Kumar from Globe Capital Market advises traders to exercise extra caution due to the stock's history of frequent price-filter hits, with support placed in the ₹800–₹725 spot zone and resistance seen in the ₹1,100–₹1,150 range. Aditya Thukral from AT Research notes that the stock is in a short-term corrective phase within an uptrending channel, with the ₹900 to ₹910 range expected to hold for uptrend continuation. The company's order book of over ₹8,000 crore with more than 90% linked to international orders provides revenue visibility, though execution will depend on customer schedules and production readiness.
