Defense stock surged 300 per cent in a year: Secures Maharashtra’s incentive scheme for Rs 1,200 crore investment, 300 acres of land to be allocated
Mega Project status granted to proposed manufacturing facility at Shirdi MIDC
Shares of Nibe Limited, a defense product manufacturer hit the 5 per cent upper circuit after the company announced via an exchange filing that the Department of Industries, Energy, Labour, and Mining, Government of Maharashtra, has conferred "Mega Project" status under the Package Scheme of Incentives (PSI) Policy, 2019. The status applies to its proposed manufacturing facility at MIDC, Shirdi, where the company plans to produce aircraft components such as vertical stabilizers, horizontal stabilizers, wings, jet engines, cockpits, fuselages, slats, spoilers, ailerons, flaps, elevators, rudders and more, with an estimated investment of Rs 1,200 crore.
As part of the Mega Project status, the company will benefit from various incentives available under the PSI Policy, 2019, and MIDC, Shirdi, will allocate 300 acres of land for this project.
Under PSI 2019, the Government of Maharashtra promotes the establishment of new industrial units or the expansion/diversification of existing units in developing regions of the state. Industrial units meeting the prescribed thresholds for fixed capital investment or direct employment are granted Mega Project status.
The High Power Committee, chaired by the Chief Secretary of the Government of Maharashtra, determines the quantum of incentives under the Mega category.
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Nibe’s sales and profit have grown at a compounded annual growth rate (CAGR) of 171 per cent and 366 per cent, respectively, over the past five years. In the past 30 days, the company has secured two purchase orders worth Rs 50 crore and Rs 79 crore, reflecting strong order inflows.
Friday, September 20, 2024, is the ex-date for the company’s final dividend of Re 1 per share for FY24. Shareholders on the record date will be eligible for this dividend.
Nibe Ltd, incorporated in 2005, is a prominent manufacturer of critical components for the defense sector, e-vehicles and software development. The stock is currently trading at Rs 2,028, with a market capitalization exceeding Rs 2,664 crore. Year-to-date in 2024, the stock has surged over 219 per cent.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.