Nibe Limited

Industrials — Aerospace & Defense · NSE

₹1,345.00+₹20.80 (+1.57%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Nibe Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nibe Limited engages in the fabrication and machining of components in the defense sector in India and internationally. The company operates through two segments: Defence and Aeronautics.

IndustryAerospace & Defense

SectorIndustrials

Employees265

Annual revenue₹474 Cr

How does it make money?

Turns over ₹474 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 265 employees supports ₹1.79 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.79 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +350% while net margin moved -20% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+350%

Margin effect-20%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 1.6% is weak

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

20/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

46.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 144% over 3 years, from ₹49 Cr to ₹120 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 551% against revenue up 350% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.9x to 1.3x.
🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 26% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 12.3% to 10.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 551% against revenue up 350%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 49% a year✓ 65.1% CAGR
Latest reported year was -23.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹147 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 2 neutral · 8 weak

Market Cap

₹2,085 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

5.61x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-8.09

Loss-making

Negative earnings per share — the business is losing money

ROE

1.6%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

-23.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-78.9%

Falling

Profits are shrinking

Dividend Yield

0.10%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹147 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-22.0%

Weak

Thin margins leave little room for error

Net Margin

-1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1276.8 / 1338.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹105 Cr	₹282 Cr	₹507 Cr	₹474 Cr	+65.1%
EBITDA	₹13 Cr	₹36 Cr	₹68 Cr	₹47 Cr	+54.1%
EBITDA Margin	12.3%	12.7%	13.4%	10.0%	—
PAT (Net Profit)	₹2 Cr	₹19 Cr	₹27 Cr	₹6 Cr	+53.2%
EPS	₹1.51	₹15.33	₹19.46	₹3.41	+31.2%
ROE	2.1%	11.8%	11.5%	1.6%	—
ROCE	5.4%	12.7%	15.2%	4.0%	—
Total Debt	₹49 Cr	₹73 Cr	₹77 Cr	₹120 Cr	+34.7%
Free Cash Flow	-₹87 Cr	-₹95 Cr	-₹45 Cr	-₹147 Cr	—

🟢 Revenue has grown at 65.1% a year over 3 years.

🟢 EBITDA has grown at 54.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.3% to 10.0% over 3 years (-2.3 pts).

🟢 PAT (Net Profit) has grown at 53.2% a year over 3 years.

🟢 EPS has grown at 31.2% a year over 3 years.

🟡 ROE has held roughly flat at 1.6% over 3 years.

🔴 ROCE has fallen from 5.4% to 4.0% over 3 years (-1.5 pts).

🔴 Total Debt has grown at 34.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹653 Cr

Total Liabilities

₹297 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

-₹35 Cr

Capex

-₹113 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

64.1%

Corporate Actions

Dividend Rate

₹1.3

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed1 negative2 general

Nibe Defence Licence Approval; Shares Rise 0.49%

HDFC Sky, 08 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Nibe CEO Prakash Hari Khose steps down; stock slips nearly 3%

Moneycontrol.com, 29 JunManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

NIBE shares jump 8% as strong margin recovery powers second-quarter profit

Investing.com India, 21 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Multibagger defence stock NIBE to be in focus on Thursday after demonstrating Garudastra to Indian Army

Livemint, 17 Jun

NIBE jumps for second day on successful loitering munition trials

Business Standard, 22 May

Nibe Q4 Revenue Jumps 130% to ₹260 Crore as Operating Margins Hit 19.76%

Sahi, 29 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-23.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑