Check Before You Invest : Nesco Ltd

Snapshot

Q.1 Which industry/sub-sector does Nesco Ltd belong to?

Nesco Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.

Q.2 Is Nesco Ltd a good quality company?

Nesco Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Nesco Ltd undervalued or overvalued?

Nesco Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Nesco Ltd a good buy now?

Nesco 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 Nesco Ltd?

Nesco Ltd revenue growth is 7.9% for FY-2025, which is below its 5-year CAGR of 11.14%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Nesco Ltd?

Nesco Ltd Return on capital employed is 20.36% for FY-2025, which is in line with its 5-year historical median of 20.36%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Nesco Ltd?

Nesco Ltd Return on Asset is 13.24%, which is in line with its 5-year historical median of 13.24%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nesco Ltd?

Nesco Ltd Return on equity is 15.23% for FY-2025, which is in line with its 5-year historical median of 15.23%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Nesco Ltd?

Nesco Ltd Cash conversion cycle is -4 days, below its 5-year historical median of -4 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.26	0.26
ROE	15.23	15.23
ROCE	20.36	20.36
Cash Conversion Cycle	-4 days	-4 days

Q.6 Gross Profit margin of Nesco Ltd?

Nesco Ltd Gross profit margin which is the profit after deduction of direct costs, is 73.7% for FY-2025, which is in line with its 5-year median of 75.5%, indicating stable margins.

Q.7 Operating Profit Margin of Nesco Ltd?

Nesco Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 59.7% for FY-2025, which is below its 5-year median of 63.64% indicating decreasing margins.

Q.8 Net Profit Margin of Nesco Ltd?

Nesco Ltd Net Profit Margin is 51.26% for FY-2025, is in line with with its 5-year median of 53.49%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	73.7	75.5
Operating Profit Margin	59.7	63.64
Net Profit Margin	51.26	53.49

Q.9 Debt to Equity ratio of Nesco Ltd?

Nesco Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.09, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Nesco Ltd?

Nesco Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nesco Ltd?

Promoters hold 68.54% of the Nesco Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nesco Ltd vs industry peers?

Nesco Ltd revenue CAGR is 11.14%, compared to the industry median CAGR of 11.02%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7.9	11
Gross Profit Growth	4.3	NAN
Operating Profit Growth	-1.2	14
Net Profit Growth	3.3	17.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.26	0.32
ROE	15.23	6.73
ROCE	20.36	12.12
Cash Conversion Cycle (days)	-3.66	50

Valuation & price assessment

Q.1 Stock return of Nesco Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 15% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	15%	19.8%	29.2%	32.7%

Q.3 Valuation ratios of Nesco Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	21.22	19.01	26.08
Price to Book	2.98	2.62	2.53
Price to Sales	9.93	9.95	5.26
EV to EBITDA	14.96	13.05	11.21

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