Multibagger defence stock jumps after entering into a technology collaboration agreement with Elbit Systems

On Monday, one of the Top Gainers on the BSE & the NSE, shares of Nibe Ltd, gained 8.2 per cent to an intraday high of Rs 1,797 per share from its previous closing of Rs 1,661.05 per share. The stock has a 52-week high is Rs 2,220 per share and its 52-week low is Rs 753.05 per share.

Nibe Limited, an Indian defence systems manufacturer, has signed a significant Technical Collaboration Agreement with Elbit Systems Land Limited, a leading Israeli defence technology company. This agreement marks a major step for Nibe Limited as it secures the license and technology transfer for Elbit's Precise & Universal Launch System (PULS). This includes an advanced artillery rocket system capable of precisely engaging targets up to a range of 300 km.

Under this international collaboration, Nibe Limited will gain the expertise to design, develop, and manufacture the PULS, which they've dubbed the Universal Rocket Launcher (SURYA), directly in India. This move is a landmark achievement for India's defence manufacturing sector, aligning with the "Atmanirbhar Bharat" (self-reliant India) and "Make in India" initiatives. It positions Nibe Limited to contribute significantly to India's self-reliant defence capabilities while expanding its global defence footprint.

The SURYA system boasts impressive features, including universal capability to launch various accurate and free-flight rockets, autonomous operation with an onboard navigation system and Launcher Mission Computer for rapid combat readiness, and automatic targeting and firing for maximum responsiveness. Its dual Launch Pod Containers (LPCs) enhance mission readiness by allowing a significant number of rockets or missiles, reducing reload cycles and improving operational efficiency for artillery units.

This strategic partnership not only strengthens India's defence readiness and self-reliance but also opens new avenues for Nibe Limited in international expansion and technological innovation. The financial details of the consideration for this agreement are expected to be finalised within 45 days of the signing.

About the Company

NIBE Limited is a leading Indian defence technology company, specialising in the development, manufacturing, and integration of advanced defence systems. With a focus on innovation, self-reliance, and global collaboration, NIBE is playing a crucial role in bolstering India’s defence capabilities and expanding its export potential in the global market. As a cornerstone of India’s defence sector, NIBE is committed to delivering world-class solutions that address the evolving challenges of modern warfare.

The shares of the company have a PE of 95x, an ROE of 14 per cent and an ROCE of 16 per cent. The stock gave multibagger returns of 138 per cent from its 52-week low of Rs 753.05 per share and a whopping 16,915 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.