Check Before You Invest : Nesco Ltd

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

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

Q: Is Nesco Ltd a good quality company?

Nesco Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Nesco Ltd undervalued or overvalued?

Nesco Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 21.34, Historic Median: 19.03. Price to Book, Current: 3, Historic Median: 2.63. Price to Sales, Current: 9.99, Historic Median: 9.95. EV to EBITDA, Current: 15.05, Historic Median: 13.05

Q: 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

Q: 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: 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: 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: Net Profit Margin of Nesco Ltd?

Nesco Ltd Net Profit Margin is 51.26% for FY-2025, is in line with its 5-year median of 53.49%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 73.7, Historic Median: 75.5. Operating Profit Margin (%), Current: 59.7, Historic Median: 63.64. Net Profit Margin (%), Current: 51.26, Historic Median: 53.49

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Nesco Ltd undervalued or overvalued?

Nesco Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	21.34	19.03
Price to Book	3	2.63
Price to Sales	9.99	9.95
EV to EBITDA	15.05	13.05

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 Net Profit Margin of Nesco Ltd?

Nesco Ltd Net Profit Margin is 51.26% for FY-2025, is in line 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	0.26	0.26
ROE (%)	15.23	15.23
ROCE (%)	20.36	20.36
Cash Conversion Cycle	-4 days	-4 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Nesco Ltd?

Nesco Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.06, 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

D: Promoter shareholding and pledge status of Nesco Ltd?

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)

E: How does Nesco Ltd performance compare with that of its Peers?

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

Nesco Ltd revenue CAGR is 11.14%, compared to the industry median CAGR of 0.35%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	7.9	0.4
Gross Profit Growth (%)	4.3	13.2
Operating Profit Growth (%)	-1.2	14.9
Net Profit Growth (%)	3.3	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.26	0.3
ROE (%)	15.23	3.7
ROCE (%)	20.36	9.3
Cash Conversion Cycle (days)	-3.66	44

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 15.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	15.1%	18.6%	25.4%	30.2%

Q.2 Valuation ratios of Nesco Ltd vs historical?

The current P/E ratio of 21.34 is higher than its historical median of 19.03, indicating that the stock is trading above its historical average valuation.

Q.3 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	21.34	19.03	26.13
Price to Book	3	2.63	2.37
Price to Sales	9.99	9.95	5.96
EV to EBITDA	15.05	13.05	11.62

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Check Before You Invest : Nesco Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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