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INVESTMENT INSIGHTS

Check Before You Invest : Nelco Ltd

BSE: 504112 NSE: NELCO ISIN: INE045B01015
  |   Sector:  Consumer Durables   |   Industry:  IT - Hardware

Snapshot

Q.1 Which industry/sub-sector does Nelco Ltd belong to?
Nelco Ltd belongs to the Consumer Durables sector, operating specifically within the IT - Hardware segment.
Q.2 Is Nelco Ltd a good quality company?
Nelco Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Nelco Ltd undervalued or overvalued?
Nelco Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Nelco Ltd a good buy now?
Nelco Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nelco Ltd?
Nelco Ltd revenue growth is -7.7% for FY-2025 , which is below its 5 year CAGR of 39.9% , indicating slower growth.
Q.2 Gross Profit margin of Nelco Ltd?
Nelco Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.8% for FY-2025 , which is in line with its 5 year median of 15.8% , indicating stable margins.
Q.3 Operating Profit Margin of Nelco Ltd?
Nelco Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.89% for FY-2025 , which is below its 5 year median of 17.8% indicating decreasing margins.
Q.4 Net Profit Margin of Nelco Ltd?
Nelco Ltd Net Profit Margin is 4.77% for FY-2025 , is below with its 5 year median of 7.14%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 15.8 15.8
Operating Profit Margin 14.89 17.8
Net Profit Margin 4.77 7.14
Q.5 Return on Asset of Nelco Ltd?
Nelco Ltd Return on Asset is 5.1(x), which is in line with its 5 year historical median of 5.1(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Nelco Ltd?
Nelco Ltd Return on equity is 8.17% for FY-2025 , which is below its historical median of 14.42%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Nelco Ltd?
Nelco Ltd Return on capital employed is 18.26% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Nelco Ltd?
Nelco Ltd Cash conversion cycle is 40 , above its historical median of 30 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.07 1.07
ROE 8.17 14.42
ROCE 18.26 18.32
Cash Conversion Cycle 40 30
Q.9 Debt to Equity ratio of Nelco Ltd?
Nelco Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.16 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Nelco Ltd?
Nelco Ltd Debt to cash flow from operations is 0 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nelco Ltd?
Promoters hold 50.09% of the Nelco Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nelco Ltd vs industry peers?
Nelco Ltd revenue CAGR is 39.93% , compared to the industry median CAGR of 4.28% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 205.6 35
Gross Profit 32.6 6.2
Operating Profit 31 8
Net Profit 10 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.07 0.6
ROE 8.17 5.65
ROCE 18.26 7.84
Cash Conversion Cycle 40.3 45

Valuation & price assessment

Q.1 Stock return of Nelco Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 20.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 20.8% 26.8% 5.5% -26.9%
Q.3 Valuation ratios of Nelco 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 437.35 102.72 46.03
Price to Book 11.62 9.42 1.97
Price to Sales 7.3 7.82 2.99
EV to EBITDA 52.26 34.19 15.43

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7. DC Infotech and Comm
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9. Umiya Buildcon
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