NIBE Limited

NIBE has emerged as a trailblazer in technology and sustainability. The company specializes in the production of a diverse range of critical components for the defense industry.

Sep 01, 2024

About NIBE

Founded in 2021, NIBE has emerged as a trailblazer in technology and sustainability. The company specializes in the production of a diverse range of critical components for the defense industry. Additionally, NIBE offers strategic products and spearheads research advancements through its E-Vehicles division and the BVM R&D Foundation.

E-Vehicles Division

NIBE’s E-Vehicles division is at the forefront of sustainable transportation, manufacturing eco-friendly E-bikes and rickshaws. This division drives a movement towards more efficient and environmentally responsible transportation solutions.

BVM R&D Foundation

The BVM R&D Foundation leads cutting-edge research in Lithium-ion battery packs, positioning NIBE as a pivotal player in the global shift towards clean energy solutions.

Vision and Mission

With a vision to play a crucial role in precision fabrication for defense production, electric vehicles, and advanced research, NIBE strives to employ state-of-the-art technology. The company's mission is to innovate and deliver quality, reliable, and eco-friendly products, services, and solutions.

Defence Sector Involvement

NIBE is actively engaged in the production of structures, sub-assemblies, and assemblies for mobile weapon launchers used in defense programs like the PINAKA and MRSAM launchers. The company also manufactures structural systems such as modular bridges for the Indian Army and engineering systems tailored for naval applications.

Financial Overview (as of recent updates)

Market Cap: ₹2386 Crore
P/E Ratio: 83.4 (Industry P/E: 82.06)
Promoter Holding: 53.10%
FII Holding: 7.89%
DII Holding: 0.51%
Cash Flow from Operations: ₹149 Crore
Price to Sales Ratio: 6.58
Net Profit (Ann.): ₹22.10 Crore

Financial Performance

Description Mar 22 Mar 23 Mar 24 TTM

Sales (₹ Crore) 21 105 279 363
Net Profit (₹ Crore) 0 5 22 29
EPS (₹) -0.43 3.85 16.80 22.07
CMP 50 426 443 1820

Recent Orders and Collaborations

Larsen & Toubro: NIBE secured seven purchase orders (POs) for the manufacturing of Bridge Centre Module Structures, valued at ₹16.80 Crore, to be completed by February 2025.
August 2024: The company received two POs from a leading infrastructure and defence firm for the supply of FCR trailers and shelters, including surface treatment and air conditioning, totaling ₹79.63 Crore.
February 2024: NIBE executed an exclusive manufacturing agreement with MUNITION India for the export of ammunition and signed a MoU with MUNITION to develop next-generation ammunition and upgrade conventional types.
January 2024: NIBE entered a licensing agreement with DIPAS, a DRDO laboratory, for technology transfer of solar-heated shelters.

Expansions

February 2024: NIBE inaugurated a new production facility at its Pune plant to manufacture equipment across a wide range of metallurgy.
January 2023: The company inaugurated its second VMC machine at its manufacturing facility, enhancing its capability to machine critical, large-sized components for defence, space, and aerospace applications.

NIBE Limited is proud to contribute to the development of subsystems for the PINAKA Multi-Barrel Rocket Launcher, delivering precision-manufactured structures and components that meet the high standards required by the nation's defense forces.

August 2024: Secured a ₹796.3 million order from an infrastructure defence firm.
May 2024: Entered a business agreement with Thales USA.
May 2024: Partnered with the Indian Defence Ministry to manufacture anti-terrorist vehicles.
April 2024: Karmayogi Manufacturing, acquired by NIBE, secured an order worth ₹3.1 billion.

Prospects

NIBE has achieved a 366% CAGR profit growth over the last five years.
Debtor days have improved from 73.8 to 50.2 days.
Promoter holding increased by 3.12% in the last quarter.
The company's median sales growth is 16.4% over the past 10 years.

Challenges

The stock is trading at 14.3 times its book value.
Promoter holding has decreased by 9.56% over the last three years.
Working capital days have increased from 40.9 days to 74.6 days.

Weekly Chart

On the weekly chart, stock seems, at a very crucial support level with an improving RSI.

Conclusion

NIBE Ltd exhibits excellent performance and growth potential across all its business segments. Ongoing expansions are likely to further enhance future performance. However, limited information regarding conference calls may be seen as a red flag. Overall, NIBE is a fast-growing company poised to continue its robust performance in the future.

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