28,000 per cent returns: This multibagger aerospace & defence company enters into licensing agreements with DRDO, Ministry of Defence – details inside

The stock gave multibagger returns of 325 per cent in just 1 year, 8,350 per cent in 3 years and a whopping 28,000 per cent in 5 years.

Nibe Ltd informed the exchange (BSE) that the company has entered into 2 licensing agreements with DRDO, Ministry of Defence. Here are the details: -

Agreement No – 1: The company has entered into a licensing agreement with the Director, Vehicles Research and Development Establishment (VRDE), Ahmednagar a constituent laboratory under the Defence Research and Development Organization (DRDO), Ministry of Defence, Government of India and the Director, Industry Interface and Technology Management (DIITM) f for the transfer of Expandable Mobile Shelter technology, developed by the DRDO. This agreement grants the company a 10-year non-exclusive license to manufacture these shelters in India for supply to the Armed Forces. In return, the company will pay a mutually agreed-upon royalty to the DRDO, and all DRDO-developed products manufactured by the company will be marked as such.

Agreement No – 2: The Company has entered into a Licensing Agreement with the Director of the Defence Institute of Physiology and Allied Services (DIPAS) and the Director of Industry Interface and Technology Management (DIITM), both associated with the Defence Research and Development Organization (DRDO). This agreement grants the Company a non-exclusive, 10-year license to use DRDO-developed technology for manufacturing and selling Solar Heated Shelters within India. As part of the agreement, the Company will pay royalties to DRDO, and all products manufactured using this technology will prominently display a "Product Developed by DRDO" marking.

Today, shares of Nibe Ltd hit a 5 per cent upper circuit to Rs 1,685.95 per share from its previous closing of Rs 1,605.70. The stock also made a 52-week high of Rs 1,685.95 per share and a 52-week low of Rs 275 per share.

Incorporated in 2005. Nibe Ltd (formerly known as Kavita Fabrics Limited) has a market cap of over Rs 2,200 crore. It is in the business of manufacturing critical components for defence, e-vehicles and software development. According to Quarterly Results, the net sales increased by 313 per cent to Rs 62.69 crore and net profit increased by 505 per cent to Rs 4.42 crore in Q3FY24 over Q3FY23. According to annual results (FY23), the company reported net sales of Rs 105 crore and net profit of Rs 2 crore.  

The stock gave multibagger returns of 325 per cent in just 1 year, 8,350 per cent in 3 years and a whopping 28,000 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.