Defence stock which is primarily engaged in the business of Component Fabrication and Machining for Defence Sector and as E-vehicle component assembly, hit 10 percent upper circuit after the company inaugurates Missile Complex and Precision Machining in Pune.
Share price movement
In Friday’s trading session, the shares of Nibe Limited went up 10.00 percent in intra-day touching a high of Rs.1,660.30 per share, from its previous close of Rs.1,509.40 apiece. The share has retreated from the day’s high and was trading at Rs. 1,612.00 per share which is 6.80 percent. It has delivered a 47 percent return in the past year and outperformed the Nifty Index.
What happened
Nibe’s stock was in focus after the company inaugurated its Missiles Complex and Precision Machining (Small Arms Complex) facility in Pune. The facility is now equipped with advanced Vertical Machining Centres (VMCs) with Computer Numerical Control (CNC) such as Kairos V5 16000, and the BMV 50 and 60+ machines.
While offering high capacity and precision, it will be used for the manufacturing of Small Arms system’s critical components, which include Light Machine Guns and Assault Rifles, as well as Missiles and Rocket Launcher structures.
Further, the event was attended by Maharashtra’s Chief Minister Devendra Fadnavis and Deputy Chief Minister Ajit Pawar followed by Ministers Uday Samant, Radhakrishna Vikhe Patil, and Mahesh Landge. The event’s guests included L&T’s top executives such as Arun T Ramchandani, and Anil S Kulkarni.
Management Commentary
Commenting on the launch, Founder, Chairman & MD, NIBE Limited, Ganesh Ramesh Nibe said “Today marked a transformative day not only for NIBE but for the entire defence industry. At NIBE, we have always envisioned a future where innovation meets advanced technology and a robust R&D facility. Our cutting-edge facilities are a testament to our relentless pursuit of excellence, innovation, and national security built with passion and perseverance. We were honored to collaborate with esteemed partners and leaders to pave the way for a robust and secure future.”
Chief Technological and Executive Officer of NIBE Limited, Balakrishnan Govind Swamy, said, “The inauguration of our new facilities represents more than just a technological landmark; it embodies our commitment to pushing boundaries and redefining the landscape of defence and aerospace. Our state-of-the-art complex is designed to foster innovation, enhance operational capabilities, and contribute significantly to our nation’s security.”
Financial Performance
Its reported financial results for Q2FY25 reveal that revenue from operations was up by 230.23 percent year-on-year from Rs. 41.18 crore in Q2FY24 to Rs.135.99 crore in Q2FY25. Additionally, Profit After Tax (PAT) was up in Q2FY25 from Rs.2.80 crore in Q2FY24 to Rs. 8.89 crore in Q2FY25.
Company Profile
Nibe Limited formerly known as Kavita Fabrics specializes in manufacturing critical components for the defence sector and e-vehicles while offering software development. The company is based in Pune and is listed on the BSE exchange.
Written by – Santhosh S
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