Multibagger Defence Stock in Focus as Company Secures Rs 292.69 Crore Defence Contract with Indian Army
DSIJ Intelligence-2Categories: Mindshare, Trending
The stock is up by 64 per cent from its 52-week low of Rs 753.05 per share and has given multibagger returns of over 10,000 per cent in 5 years.
NIBE Limited has secured a major Defence supply contract from the Indian Army under the Ministry of Defence, marking a significant milestone for the company in the domestic defence manufacturing space. The contract is valued at Rs 292.69 crore, inclusive of all applicable Taxes and duties.
Under the agreement, Nibe Limited will manufacture and supply equipment related to the Universal Rocket Launcher System. The scope of work includes ground equipment, accessories, ESP, and ammunition. The Universal Rocket Launcher System is a versatile platform designed to integrate multiple types of rockets, including long-range variants capable of striking targets at distances of up to 150 km and 300 km.
The contract has been classified as a domestic award and will be executed in multiple tranches over a period of 12 months. As part of the contractual obligations, Nibe Limited is required to submit a performance-cum-warranty Bank guarantee equivalent to 10 per cent of the total contract value within 30 days from the date of signing.
The company has clarified that neither its promoter group nor any related parties have any interest in the entity awarding the contract, ensuring transparency and compliance with regulatory norms.
This order further strengthens Nibe Limited’s position in India’s growing defence manufacturing ecosystem and aligns with the government’s focus on indigenisation of defence equipment.
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 566x, an ROE of 14 per cent and an ROCE of 16 per cent. The stock is up by 64 per cent from its 52-week low of Rs 753.05 per share and has given multibagger returns of over 10,000 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.