Defence Company Signs LOI with HBE for Defence and Aerospace JV also Partners with Sig Sauer for Weapons Manufacturing in India – Stock Hits Upper Circuit Today!
The company’s shares have delivered a multibagger of around 275 per cent to its shareholders in just 1 year.
This Small-Cap defence company has signed a Letter of Intent (LOI) with HBE, South Korea, to establish a joint venture in India for forging facilities to manufacture defence and aerospace products. In the proposed JV, Nibe Ltd and HBE will hold stakes in a 51:49 ratio. The LOI is non-binding and subject to due diligence, regulatory and legal approvals, and the execution of a definitive agreement.
Additionally, the company has executed a Term Sheet with Sig Sauer, USA, a globally recognized firearms and weapons manufacturer catering to military, law enforcement, and commercial users. This JV aims to manufacture weapons and defence products for the Indian military, paramilitary, security, and police services. In the proposed joint venture, Nibe Ltd and Sig Sauer will hold stakes in a 51:49 ratio. The term sheet is also subject to due diligence, along with various regulatory and legal approvals.
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Today, shares of Nibe Ltd hit the upper circuit and finally closed at around Rs 1933.30 per share. The company’s current market capitalization stands at Rs 2538.65 crore. The stock has delivered a multibagger return of over 275 per cent in just 1 year.
As per the Quarterly Results, in Q1 FY25, Nibe Ltd recorded a revenue of Rs 109.28 crore compared to Rs 25.75 crore representing a gain of 324 per cent. The operating profit for Q1 FY25stood at Rs 15.48 crore with an operating margin of 14.17 per cent. The net profit for Q1 FY25 was Rs 7.86 crore compared to Rs 1.31 crore representing a gain of 500 per cent. Looking at the annual performance, the company generated a revenue of Rs 279 crore in FY24. The operating profit for FY24 was Rs 37 crore with a net profit of Rs 22 crore.
Disclaimer: The article is for informational purposes only and not investment advice.