Since the Covid-19 pandemic, a wide range of stocks listed in India have given tremendous returns to its stakeholders paving the way for them to increase their wealth base.
Listed below is one such stock under the ‘micro-cap’ category that has delivered whopping returns of 9,600 percent to its shareholders within a period of four years:
Nibe Limited
With a market capitalization of Rs 948.67 crores, the stocks of Nibe Limited closed their trading session on Friday hitting the 5 percent upper circuit at Rs 722.40. The company’s stock hit its 52-week high price in December 2023 at Rs 767.90.
As per the BSE data, the company’s stock has delivered huge returns of approximately 9,600 percent within a span of just four years. The stock price shifted from Rs 7.43 in the month of January 2020 to the current stock price level prevailing in the market.
The same means that if someone had invested Rs 10,000 in the stock four years ago, it would have converted to Rs 9.70 lakhs.
Digging into the standalone financials of the company, the prime business indicators such as operating revenues and after-tax profits showed positive movements with the former jumping from Rs 25 crores during Q1FY23-24 to Rs 41 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, moved up from Rs 1 crore to Rs 3 crores.
As a result of the same, the basic profitability metrics saw a jump in numbers with the return on equity (RoE) increasing from 1.99 percent during FY21-22 to 5.89 percent during FY22-23. Moreover, the return on capital employed (RoCE) shifted from 3.86 percent to 9.02 percent during the same time horizon.
The latest shareholding data, as per the September 2023 quarter, represents the company’s Promoters holding a 55.32 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing their stake, currently hold a 3.88 percent stake in the company.
Incorporated in 2005, Nibe Limited is engaged in the fabrication and machining of components business in India. The company provides services associated with the design, supply, erection, and commissioning of low & medium-voltage lines. It also manufactures critical components for software development, defence, e-vehicles, etc.
Written by Amit Madnani
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