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Check Before You Invest : Nelcast Ltd

BSE: 532864 NSE: NELCAST ISIN: INE189I01024
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Nelcast Ltd belong to?
Nelcast Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Nelcast Ltd a good quality company?
Nelcast Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Nelcast Ltd undervalued or overvalued?
Nelcast Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Nelcast Ltd a good buy now?
Nelcast Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nelcast Ltd?
Nelcast Ltd revenue growth is -1.2% for FY-2025 , which is below its 5 year CAGR of 17.2% , indicating slower growth.
Q.2 Gross Profit margin of Nelcast Ltd?
Nelcast Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.6% for FY-2025 , which is above its 5 year median of 5.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Nelcast Ltd?
Nelcast Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.1% for FY-2025 , which is in line with its 5 year median of 7.1% indicating stable margins.
Q.4 Net Profit Margin of Nelcast Ltd?
Nelcast Ltd Net Profit Margin is 2.98% for FY-2025 , is above with its 5 year median of 2.35%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 5.6 5.5
Operating Profit Margin 7.1 7.1
Net Profit Margin 2.98 2.35
Q.5 Return on Asset of Nelcast Ltd?
Nelcast Ltd Return on Asset is 3.26%, which is above its 5 year historical median of 2.99%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Nelcast Ltd?
Nelcast Ltd Return on equity is 6.96% for FY-2025 , which is above its historical median of 6.53%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Nelcast Ltd?
Nelcast Ltd Return on capital employed is 9.98% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Nelcast Ltd?
Nelcast Ltd Cash conversion cycle is 76 days, above its historical median of 73 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.09 1.09
ROE 6.96 6.53
ROCE 9.98 9.58
Cash Conversion Cycle 76 days 73 days
Q.9 Debt to Equity ratio of Nelcast Ltd?
Nelcast Ltd Debt-to-Equity ratio is 0.53 , which is above with the industry average of 0.34 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Nelcast Ltd?
Nelcast Ltd Debt to cash flow from operations is 2.81 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nelcast Ltd?
Promoters hold 74.87% of the Nelcast Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nelcast Ltd vs industry peers?
Nelcast Ltd revenue CAGR is 17.17% , compared to the industry median CAGR of 7.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,251.7 138.5
Gross Profit 70.1 12.1
Operating Profit 89 13.6
Net Profit 37 5.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.09 1.22
ROE 6.96 9.98
ROCE 9.98 12.36
Cash Conversion Cycle (days) 75.75 78

Valuation & price assessment

Q.1 Stock return of Nelcast Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 8.8% 16.8% 15.3% 54.4%
Q.3 Valuation ratios of Nelcast Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 25.53 25.47 38.01
Price to Book 2.05 1.28 2.45
Price to Sales 0.92 0.57 1.59
EV to EBITDA 11.43 0.00 12.17

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