Shares of this small-cap stock associated with the ‘Aerospace & Defence’ industry hit its 5 percent upper circuit in Friday’s trading session after the company successfully secured a purchase order to supply kits of small-arm assemblies.
With a market capitalization of Rs 1,995.24 crores, the stocks of Nibe Limited started their trading session on Friday hitting its 5 percent upper circuit at Rs 1,519.35 and currently are locked at the same share price level.
Such bullish stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has successfully secured a purchase order worth Rs 307.76 crores from “Ordefence Systems Limited”.
The Domestic order pertains to the supply assemblies, sub-assemblies, and 12 kits of small-arm assemblies and the same is decided to be executed by 31st March 2027.
During the recent financial quarters, the company’s prime business indicators such as operating revenues and after-tax profits showed a stellar performance with the former increasing from Rs 41.18 crores during Q2FY24 to Rs 62.69 crores during Q3FY24 and, the latter, keeping the timeframe the same, shifted up from Rs 2.80 crores to Rs 4.42 crores.
In addition to the above, the company’s standalone profitability metrics have shown some positive movements 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), during the same horizon, rose from 3.86 percent to 9.02 percent.
Keeping a purview of the last six months, the company’s stock delivered multibagger returns of approximately 185 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.85 lakhs.
Incorporated in 2005, Nibe Limited is an India-based company that is engaged in the provision of various services in the field of design, supply, erection, and testing of low & medium-voltage lines. It also manufactures assemblies of mobile weapon launchers, structural and engineering systems for naval applications, and oxygen generation plant skids.
Written by Amit Madnani
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