Watch out for this multibagger defence player with significant development!
They have also entered into several agreements including a license manufacturing agreement
Nibe in its recent regulatory filing stated that it has signed MOUs with Goa Shipyard, Garden Reach Shipbuilders and Engineering Limited and Hindustan Shipyard Limited at Defence Expo. It has incorporated a new subsidiary, namely Nibe Defence and Aerospace Limited.
They have also entered into several agreements including a license manufacturing agreement to manufacture indigenous switches and routers with Nivetti Systems Pvt. and signed a long-term exclusive agreement with Larson & Toubro Limited for manufacturing critical components for defence equipment. The company has joined hands with ArcelorMittal Nippon Steel India Limited and JSW Steel Limited for trading of steel business.
Incorporated in 2005, Nibe Ltd is in the business of manufacturing critical components for defence, e-vehicles and software development. Also, the company is a service provider in field of design, supply, testing and also commissioning of low-voltage & medium voltage lines having substations on a turnkey basis. The company was acquired by new management through an open offer of shares in March 2020.
As per results, the company has given outstanding returns as both revenue and EBITDA increased close to 4 times from its corresponding quarter. On an intraday basis on Tuesday, shares of Nibe Ltd locked in the lower circuit and were down 4.99 per cent to reach Rs 365.5 from its opening price of Rs 388.7. The company has shown strong momentum in the last 6 months, gaining a 644.67 per cent return. Long-term investors with a high-risk appetite should keep a close eye on this stock.