The shares of this smallcap company clocked a 10 percent upper circuit after receiving an order worth Rs. 79.63 crores from an Infra and Defence company. In one year, the stock has delivered more than a 300 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 2,462 crores, the shares of NIBE Ltd started Friday’s trading session on a higher note at Rs. 1,938.85, clocking a 10 percent upper circuit compared to its previous close of Rs. 1,846.55 apiece.
What Happened:
Such a positive movement in the stock price was observed after the company in an exchange filing announced that it had received two purchase orders from one of the leading Infra and Defence company for the supply of FCR Trailers and Shelters including surface treatment and Air Conditioning for a total consideration of over Rs. 79.63 crores.
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Financials:
Looking at the company’s financial statements, the revenue decreased by around 28 percent from Rs. 152.17 crores during the March quarter to Rs. 110.06 crores in the June quarter. On the other hand, the net profits declined by 24 percent from Rs. 10.43 crores to Rs. 7.88 crores during the same period.
Recent Developments:
On May 27, 2024, the company revealed that it had secured a Business Agreement with Thales USA. This agreement involves Thales USA serving as the designer, manufacturer, installer, and supplier of MM-7000 TACAN equipment and additional services for the Indian Navy.
Furthermore, the defence company also entered into a Licensing Agreement with Vehicles Research and Development Establishment (VRDE), Ahmednagar, Defence Research and Development Organisation (DRDO), Ministry of Defence, Government of India for Transfer of Technology to manufacture and sell Anti-Terrorist Vehicle (ATV) in India to Indian Armed Forces/Other Govt. Agencies (Central and State).
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.52 percent and a return on capital employed (RoCE) of 13.03 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 6.57percent.
Manufacturing Facilities:
The company has strategically expanded its operations and has already set up two plants and one more plant is going to be operational in the coming years. All the 3 plants are within the MIDC area of Chakan.
The plant 1 is dedicated to serving L&T Defence, underlining the company’s commitment to delivering high-quality products and services in this sector. Plant 2 is dedicated to the production of heavy fabricated structures and machinery.
Shareholding Pattern:
According to the latest shareholding pattern, the promoters hold 51.43 percent of the shares, foreign institutional investors (FIIs) have a stake of 8.30 percent, domestic institutional investors (DIIs) own 0.59 percent, and the remaining 39.67 percent is held by retail investors.
Company Profile:
Incorporated in 2005, Nibe Ltd is engaged in the business of Fabrication and Machining of components used in the Defence Sector as well as the assembly of components of e-vehicles. It also offers strategic products and related research advancements in the E-Vehicles division and the BVM R&D Foundation.
Written By Vaibhav Patil
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