Synopsis:
Small-cap defence stock is in focus today after receiving a domestic order worth Rs. 28 cr.
A small-cap company that is in the business of manufacturing critical components for Defence, E-Vehicles and Software Development, is in the spotlight after receiving a domestic order from one of the leading infrastructure and defence companies.
With the market capitalization of Rs. 1,930.99 crore, the shares of NIBE Limited are trading at Rs. 1,331.60, almost flat from its previous day’s close price of Rs. 1,333.30. It has touched an intraday high of Rs. 1,389.90 in today’s trading session, implying up by 4.25 percent from previous close price.
Work Order
Nibe Ltd has received a domestic order worth Rs. 28.08 crore (inclusive of all taxes and duties) from one of the leading infrastructure and defence companies for the manufacturing and supply of Breech Casing assemblies. The contract will be executed and delivered in tranches by June 2028.
A breech casing assembly is the strong metal part at the back of a gun or artillery barrel where shells are loaded and fired; it holds the mechanisms that close and lock the barrel, supports the firing parts, and helps eject spent shells, while withstanding the enormous pressure and heat when a round is fired to keep the weapon safe and working properly.
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About the Company & Others
Nibe Limited, based in Mumbai, India, specializes in the fabrication and machining of components for the defense sector both domestically and internationally. Its offerings include advanced defense systems such as the Pinaka launcher system, modular bridge systems, BrahMos missile canisters, road mobile launchers, and close-in weapons systems, along with various assemblies like hulls, turrets, breech blocks, and trigger mechanisms.
In addition to defense manufacturing, Nibe Limited provides comprehensive aviation services including aircraft charter, management, sales and purchase, financing, leasing, fractional ownership, induction and certification, and inflight services.
The company also develops ruggedized electronics and hardware solutions such as panel PCs, network and Ethernet switches, dual display consoles, joystick consoles, sensors, and various electrical assemblies. Formerly known as Kavita Fabrics Limited, it was renamed Nibe Limited in July 2020.
A return on equity (ROE) of about 13.6 percent, a return on capital employed (ROCE) of about 16.2 percent and debt to equity ratio of 0.33 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 93.1x higher as compared to its industry P/E 68.1x.
In Q1 FY26, the company reported a revenue of Rs. 82.5 crore, down 25 percent YoY from Rs. 110.06 crore in Q1 FY25 and down 27 percent QoQ from Rs. 112.59 crore in Q4 FY25.
Net profit declined sharply to Rs. 1.05 crore in Q1 FY26, a fall of 87 percent YoY from Rs. 7.88 crore and 88 percent QoQ from Rs. 8.73 crore, reflecting significant pressure on both top-line and profitability compared with the previous quarter and year.
Written by Akshay Sanghavi
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