During Friday’s trading session, the shares of a company engaged in the business of Fabrication and Machining of components used in the Defence Sector are in focus after the company has been granted the status of “Mega Projects” with a revised estimated project cost of Rs. 800 crores.
With a market capitalisation of Rs. 2,087.5 crores, the shares of NIBE Limited surged around 1.5 percent to hit an intraday high at Rs. 1,610 on BSE, as against its previous closing price of Rs. 1,585.65.
What’s the News
According to the latest regulatory filings with the stock exchanges, NIBE Limited has been granted the status of “Mega Projects” for its proposed manufacturing facility at MIDC, Shirdi, Taluka, Rahata, Dist., Ahmednagar.
The project aims to manufacture aircraft parts such as Vertical Stabilizer, Horizontal Stabilizer, Wings, Jet Engine, Cockpit, Fuselage (Body), Slats, Spoiler, Aileron, Flaps, Elevator, Rudder and more.
This status was granted by the Department of Industries, Energy, and Labour under the Package Scheme of Incentives Policy, 2019, with a revised estimated project cost of Rs. 800 crores.
The Mega Project status provides the company with several benefits. These include an Industrial Promotion Subsidy amounting to 100% of eligible investments made within five years from 1st April 2025, or up to 100% of the SGST payable within the same period, whichever is lower.
Additional benefits include a power tariff subsidy, and reimbursement & exemption from certain expenses/payments on account of stamp duty, electricity contribution to PF etc.
Previous News
6th November 2024: NIBE announced signing a Letter of Intent (LOI) with HBE, South Korea, to set up a joint venture (JV) for forging facilities in India to manufacture defence and aerospace products. In proposed JV Nibe and HBE will hold in the ratio of 51:49.
Financials
The company reported a significant growth in the revenue from operations, experiencing a rise of nearly 230 percent YoY, increasing from Rs. 41.2 crores in Q2 FY24 to Rs. 136 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit increased from Rs. 2.8 crores to Rs. 9 crores, representing a growth of around 221.4 percent YoY.
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Key Financial Ratios
In terms of key financial metrics, NIBE has a Return on Equity (RoE) of 14.2 percent and a return on capital employed (RoCE) of 15.8 percent. Additionally, the company’s debt-to-equity ratio stands at 0.32.
Stock Performance
The stock has delivered positive returns of nearly 84.5 percent in one year, while around 22 percent of negative returns in the last six months. Likewise, the shares of NIBE have given negative returns of about 18.3 percent in the last one month.
About the Company
Established in 2021, NIBE Limited is engaged in the business of Fabrication and Machining of components used in the Defence Sector, as well as the assembly of components of E-Vehicles.
In the defence segment, NIBE focuses on precision weapons, surveillance communication equipment, protective vehicles, and defensive/deterrence systems and components.
The company manufactures structures, sub-assemblies, and assemblies for mobile weapon launchers used in programs like the BrahMos Missile, MRSAM, and Pinaka rocket systems. Additionally, it produces structural & engineering systems, sensors & wiring, control systems, military software, and other advanced defence components.
Written by Shivani Singh
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