From Zero to FIIs' Favourite: Multibagger small-cap defence stock with 4000 per cent gains and order worth Rs. 1,31,12,29,662- watch out as it prepares to report earnings!

As of December 2023, Foreign Institutional Investors (FIIs) have amassed a significant stake of 10.43 per cent in the company.

With the conclusion of the US Federal Reserve meeting and the release of a cautious approach to rate reduction, coupled with the recent unveiling of the Interim Budget 2024, the financial stage is set for a continued focus on individual stocks. The spotlight is now on companies poised to announce their Quarterly Results, and one such contender is Nibe Ltd, currently trading with an uptick of nearly 1.75 per cent at Rs 832.

Established in 2005, Nibe Ltd has carved its niche in manufacturing critical components for Defence, E-Vehicles, and Software Development. The stock has been on a remarkable ascent, delivering multibagger returns of 101 per cent in the past year and an astonishing 4,037 per cent surge over the last three years. With its upcoming earnings announcement scheduled for Friday, as stated in the press release, anticipation and speculation are rife.

Intriguingly, a notable aspect of Nibe Ltd's current market dynamics lies in its shareholding pattern. As of December 2023, Foreign Institutional Investors (FIIs) have amassed a significant stake of 10.43 per cent in the company. The twist in the tale becomes evident when comparing this to the shareholding pattern of December 2022, which revealed a null FIIs stake. Notably, in September 2023, FIIs held 3.88 per cent, indicating a substantial leap in their holding over the course of just three months.

The catalyst behind this remarkable surge in FIIs' shareholding is none other than Aegis Investment Fund Pcc, a Mauritius-based entity with a penchant for long-term investing. Aegis targets small and mid-sized companies, both listed and unlisted, with a minimum operational history of two years. In the shareholding pattern of December 2023, Aegis Investment Fund Pcc commands a noteworthy 6.72 per cent stake in Nibe Ltd, translating to 882,191 shares of the company.

The market awaits Nibe Ltd's quarterly results with bated breath, with the strategic moves of Aegis Investment Fund Pcc adding an extra layer of intrigue to the unfolding narrative. Nibe has received new orders worth of Rs. 2,13,56,24,337 in the year 2022-23 and as on March 31, 2023, 85 number of orders worth of Rs. 1,31,12,29,662 are under execution. 

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