The shares of Defence company specializing in the manufacturing of critical components for Defence, E-Vehicles, and Software Development have jumped up to 6 percent upon entering into a Licensing Agreement for the Transfer of Technology.
Price action
With a market capitalization of Rs. 2,065.85 crores on Wednesday, the shares of NIBE Limited jumped up to 6 percent making a high of Rs. 1,466 per share compared to its previous closing price of Rs. 1,389.55 per share.
What Happened
NIBE Limited specializing in the manufacturing of critical components for Defence, E-Vehicles, and Software Development has entered into a Licensing Agreement with the Research & Development Establishment (Engrs), Pune Research & Development Organisation (DRDO), Ministry of Defence, Government of India.
The agreement is for the Transfer of Technology to manufacture and sell 24m Mountain Foot Bridge for All-Terrain Vehicles (ATV) Including its Launching Systems and it aims to supply the product to Indian Armed Forces and other government agencies.
Furthermore, the company informs that the Maharashtra Industrial Development Corporation (MIDC) has allotted 3,27,239 Sq Mts of land at Plot No. A-1/2 in Shirdi Industrial Area, Maharashtra, to set up a manufacturing unit for defence products.
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About the company
Nibe Limited is a prominent Indian company specializing in the manufacturing of engineering products, including defense and industrial equipment, and has a strong presence in sectors such as defense, infrastructure, and manufacturing. They mainly focus on delivering high-quality products and solutions for government and private sector clients.
Key Insights
The company’s PEG ratio stands at 0.11, suggesting that the stock might be undervalued. It also has a low debt-to-equity ratio of 0.32 and has achieved an average 3-year revenue growth of 135.93 percent.
Financials
The company’s revenue rose by 229 percent from Rs. 41.57 crore to Rs.136.92 crore in Q2FY24-25. Meanwhile, Net profit grew from Rs. 2.84 crore to Rs. 9.12 crore during the same period.
Written by Sridhar J
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