Shares of an Indian aerospace and defence engineering company have delivered stellar returns to investors in the past. However, the stock appears to have hit a roadblock, with profit booking potentially weighing on sentiment as it has hit lower circuits for four consecutive sessions.
We are talking about Sigma Advanced Systems, a company with an international presence that designs, develops and manufactures mission-critical systems across aerospace, avionics, naval systems, radars and communication systems.
On Tuesday, 13 October, the stock dropped 5% to hit the lower circuit of ₹914.85. Notably, it hit lower circuits last Thursday, Friday, and Monday as well. At the current juncture, the defence stock looks set to extend its losing streak for the sixth consecutive session.
At the current market price of ₹914.85, the stock has lost nearly 19% over the last six consecutive sessions. But despite this correction, the stock's return this year is astonishing.
BSE data shows that 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.