24,800 per cent multibagger returns: This aerospace and defence company partners for transfer of technology to manufacture Anti-Terrorist Vehicles; stock hits upper circuit today!

The company's shares have delivered an impressive return of around 300 per cent to their shareholders in just 1 year.

Nibe Ltd is engaged in the manufacturing of critical components for the defense sector, electric vehicles, and software development. The company has entered into a licensing agreement with the Vehicles Research & Development Establishment (VRDE) in Ahmednagar, part of the Defence Research & Development Organisation (DRDO) under the Ministry of Defence, Government of India. This agreement grants Nibe Ltd the technology transfer rights to manufacture and sell Anti-Terrorist Vehicles (ATVs) in India to the Indian Armed Forces and other government agencies at both the central and state levels.

On Tuesday, the company's stock closed at around Rs 1574.05 per share, with a market capitalisation of Rs 2067 crore. Additionally, the stock has delivered an impressive return of around 300 per cent in the past 1 year only and a multibagger return of 24,805 per cent in the past five years. According to the Quarterly Results, in Q3 FY24, the company's revenue surged by 313 per cent, reaching Rs 62.69 crore, while net profit skyrocketed by 505 per cent during the same period.

According to the shareholding pattern of the company, promoters hold 49.96 per cent of the company while FIIs and DIIs hold 11.03 per cent and 0.78 per cent as per the recent update.

Also read Heavy buying: Company secured orders from Havells India and KSB Limited recently; stock rallies around 20 per cent and hits 52-week high!

Business Overview

The company is primarily engaged in the fabrication and machining of components utilized in the defence sector, along with the assembly of components for electric vehicles (EVs). Additionally, it offers strategic products and conducts related research advancements within the EV division and the BVM R&D Foundation.

In the defence segment, the company's clientele encompasses all three branches of the Indian defence forces, as well as serving L&T Defence. Under the brand NIBE Defence, it manufactures structures, sub-assemblies, and assemblies for mobile weapon launchers utilized in programs such as the BrahMos Missile, MRSAM, and Pinaka rocket launcher. Furthermore, it manufactures structural and engineering systems tailored for naval applications. The electronic division specializes in sensors, wiring, control systems, military software, and similar technologies.

Investors must keep this small-cap stock on their radar.

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