Multibagger aerospace & defence stock with 14,000 per cent returns; Company announces 4 major updates; Details inside
The stock gave multibagger returns of 250 per cent in just 2 years, 3,740 per cent in 3 years and a whopping 28,000 per cent in 5 years.
Nibe Ltd Announces 4 Major Updates
Update 1: NIBE Limited, a leading manufacturer of critical defence systems, celebrated its Foundation Day on February 6, 2025, with the inauguration of a cutting-edge Missiles Complex and a Precision Machining (Small Arms Complex) facility in Pune. The new facilities are equipped with advanced CNC Vertical Machining Centres, including the Kairos V5 16000 and BMV 50 and 60+ machines. These high-capacity, high-precision machines will be used to manufacture critical components for small arms like light machine guns and assault rifles, as well as missile and rocket launcher structures, further solidifying NIBE's commitment to excellence in the defence sector.
The inauguration ceremony was graced by prominent figures, including Maharashtra Chief Minister Shri Devendra Fadnavis, Deputy Chief Minister Shri Ajit Pawar, and Ministers Shri Uday Samant, Shri Radhakrishna Vikhe Patil, and Shri Mahesh Landge. Industry leaders like Mr. Arun T Ramchandani and Mr. Anil S Kulkarni, along with top executives from L&T, were also present. This significant event underscores NIBE's dedication to innovation and progress in the defence industry, marking a major milestone in the company's journey.
Update 2: Nibe Limited announces that its subsidiary, Nibe Space Private Limited, has secured two significant contracts. The first is with Thales Alenia Space Italia S.p.A. for the supply of a Global-6 One Gen Optical Satellite, including Launch and Early Orbit Phase (LEOP) and in-orbit activities, for a consideration not exceeding USD 19 million. Delivery is expected within nine weeks of the agreement's effective date, contingent upon necessary government and regulatory approvals. The second contract, with Blacksky Global, LLC, covers the operation and maintenance of the Global-6 Optical Satellite for two years, subject to the terms and conditions outlined in the agreement.
Update 3: Nibe Limited hereby announces that its subsidiary, Nibe Space Private Limited, has signed a Memorandum of Understanding (MoU) with the Maharashtra Remote Sensing Application Centre (MRSAC). This MOU outlines the supply of high-resolution Earth observation imagery, beginning with 70cm resolution and improving to 30-50cm resolution within the next two to three years. The agreement is subject to the execution of a definitive agreement.
Update 4: Nibe Limited has entered into a Licensing Agreement with the Research & Development Establishment (Engrs), Pune, and Pune Research & Development Organisation (DRDO), Ministry of Defence, Government of India. This agreement grants Nibe Limited the technology transfer rights to manufacture and sell 35m Mountain Foot Bridges, including their launching systems, in India to the Indian Armed Forces and other Central and State Government agencies. The key terms of the agreement include this technology transfer for the specified purpose. Nibe Limited holds no shareholding in either of the aforementioned entities.
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About the Company
Incorporated in 2005. Nibe Ltd (formerly known as Kavita Fabrics Limited) has a market cap of over Rs 2,600 crore and has delivered good profit growth of 366 per cent CAGR over the last 5 years. NIBE Ltd is a company specializing in manufacturing components for both defence and electric vehicles. They produce parts for weapon systems, naval applications, and electric vehicles. Additionally, they develop software and conduct research in the electric vehicle sector. Their customers include the Indian military and L&T Defence.
According to Quarterly Results, the net sales increased by 231 per cent to Rs 136 crore in Q2FY25 compared to Rs 41 crore in Q1FY24. The company reported a net profit of Rs 9 crore in Q1FY25 compared to a net profit of Rs 3 crore in Q1FY24, an increase of 200 per cent. In its annual results, the net sales increased by 168 per cent to Rs 281.84 crore and net profit increased by 1,062 per cent to Rs 18.53 crore in FY24 compared to FY23.
The shares of the company have a PE of 66x, an ROE of 17 per cent and an ROCE of 19 per cent. The stock gave multibagger returns of 250 per cent in just 2 years, 3,740 per cent in 3 years and a whopping 28,000 per cent in 5 years. Investors should keep an eye on this small-cap aerospace & defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.