Shares of this multibagger defence stock hit the 5 percent upper circuit after the company inaugurated its new production facility in Pune, Maharashtra. In the past month, the company’s stock gained more than 50 percent for its stakeholders.
With a market capitalization of Rs 1,660.30 crores, the stocks of Nibe Limited opened their trading hour on Wednesday at Rs 1234.80 and currently are locked in the 5 percent upper circuit registered at a price of Rs 1264.30 apiece.
Such sharp stock price movements were observed today after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), announced the inauguration of its new production facility in Pune, Maharashtra.
The plant will house state-of-the-art technology and infrastructure which will be used to produce various equipments including metallurgy in the field of aerospace, land, and maritime applications such as bridges, armoured vehicles, small arms, artillery ammunition, and other engineering systems and subsystems.
During the recent financial quarters, the company’s prime indicators of business, viz, operating revenues as well as after-tax profits, showed a stellar performance with the former increasing from Rs 41 crores during Q2FY24 to Rs 62 crores during Q3FY24 and the latter, during the same time horizon, doubled from Rs 2 crores to Rs 4 crores.
Keeping a purview of six months, the company’s stock delivered multibagger returns of approximately 171 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.71 lakhs.
The latest shareholding pattern data of the company, as per the December 2023 quarter, exhibits the Promoters holding a 49.96 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing their stake, currently hold a considerable stake of 10.43 percent in the company.
Incorporated in 2005, Nibe Limited is engaged in the business of fabrication and machining of components in India. The company provides services in the fields of design, supply, testing, erection, and commissioning of low and medium-voltage lines such as substations, etc on a turnkey basis.
Written by Amit Madnani
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