Shares of this smallcap company clocked 5 percent upper circuit after reporting an increase in net sales by 143 percent YoY. In just six months, the shares have delivered a multibagger return of 162 percent to its shareholders.
With a market capitalization of Rs. 2,066 crores, the shares of NIBE Ltd started Tuesday’s trading session on a higher note at Rs. 1,575.60, clocking 5 percent upper circuit compared to its previous close of Rs. 1,500.60 apiece.
Such a bullish movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. The revenue zoomed by 142 percent from Rs. 62.69 crores during the December quarter to Rs. 152.17 crores in the March quarter. In addition, the net profits magnified by 137 percent from Rs. 4.41 crores to Rs. 10.43 crores during the same period.
Comparing the same metrics on a YoY basis, the net sales surged by around 143 percent from Rs. 62.62 crores during Q4FY23 to Rs. 152.17 crores in Q4FY24. On the other hand, the net profits showcased a transition from a net loss of Rs. 63 lakhs to a net profit of Rs. 10.43 crores during the same timeframe.
The company’s EBITDA stands at Rs. 20.25 crore in March 2024 up 304.19 percent from Rs. 5.01 crore in March 2023. Further, NIBE EPS has increased to Rs. 7.94 in March 2024 from Rs. 0.60 in March 2023.
Additionally, the board of directors have recommended a dividend of Rs. 1 per Equity Share of Rs. 10 each for the financial year ending March 31, 2024, subject to the approval of the Members at the ensuing Annual General Meeting (AGM) of the company.
Furthermore, the company in an exchange filing published on the 27th of May 2024, announced that they had entered into a Business Agreement with Thales USA, for the designer, manufacturer, installer and supplier of MM-7000 TACAN equipment and other services to the Indian Navy.
Earlier, the defence company 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).
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.
According to the latest shareholding pattern, the promoters hold 49.96 percent of the shares, foreign institutional investors (FIIs) have a stake of 11.03 percent, domestic institutional investors (DIIs) own 0.78 percent, and the remaining 38.23 percent is held by retail investors.
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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