Multibagger defence stock engaged in the business of Fabrication and Machining of components used in Defence Sector and many more hit a 5 percent upper circuit in the day’s trade upon signing JV’s to setup defence and aerospace facilities.
Price Action
With a market capitalization of Rs. 2,539 Crores, the shares of Nibe Limited hit a 5 percent upper circuit in the day’s trade at Rs. Rs. 1,933.30 per equity share, from its previous day’s close price of Rs. 1,841.25. It has delivered multibagger returns of 280 percent in a year.
What Happened
Nibe Limited has entered into a joint venture agreement with Sig Sauer, USA(a renowned firearms and weapons manufacturer of premier global military, law enforcement, and commercial users), to set up a JV in India to manufacture weapons and defence products for the Indian military, paramilitary, security, and Police Services. In the proposed JV Nibe and Sig Sauer will hold equity in the ratio of 51:49.
In addition, it has signed a Letter of Intent (LOI) with HBE, South Korea to set up a joint venture for forging facilities in India to manufacture defence and aerospace products. In the proposed JV Nibe and HBE will hold equity in the ratio of 51:49.
About the Company
Nibe Limited is engaged in the business of Fabrication and Machining of components used in Defence Sector as well as 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
In defence, it Manufactures structures, sub-assemblies, and assemblies of mobile weapon launchers for programs such as BrahMos Missile, MRSAM, and Pinaka rocket launcher. Also manufactures Structural and Engineering systems, Sensors & Wiring, Control Systems, Military Software and many others
Financials & Ratios
Its Revenue from operations grew by 324 percent from Rs. 25.75 Crores in Q1FY24 to Rs. 109.28 Crores in Q1FY25, accompanied by profits of Rs. 1.31 Crores to Rs. 7.86 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 18.8 percent, and a return on capital employed (ROCE) of 19.9 percent. It has reported a debt-to-equity ratio of 0.45.
Written by: Bharath K.S
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