Nelcast Ltd Stock Analysis

BSE: 532864 | NSE: NELCAST | Castings/Forgings | Small Cap

BSE Share Price 25-Nov-2022 18:01
87.05 1.30 (1.52%)

DeciZen - Make an Informed Decision on Nelcast

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Nelcast Price Chart

P/E Ratio (SA) :
26.34
Market Cap :
757.4 Cr.
52-wk low :
50.1
52-wk high :
98
Bole Toh?

1. Is Nelcast Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Nelcast Ltd is a below average quality company.

2. Is Nelcast Ltd undervalued or overvalued?

The key valuation ratios of Nelcast Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Nelcast Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Nelcast Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Nelcast:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Nelcast Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 6%7.7%7.8%9.8%9.9%9.2%8.3%6.6%3.2%4.1%-
Value Creation Index -0.6-0.5-0.4-0.3-0.3-0.4-0.4-0.5-0.8-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5085155455615757458565676159271,124
YoY Gr. Rt. %-1.5%5.8%2.9%2.5%29.6%15%-33.8%8.5%50.8%-
Adj EPS 1.52.62.53.63.94.24.33.711.23.3
YoY Gr. Rt. %-66.9%-1.6%43.5%8.3%6.9%2.6%-14.6%-74.2%22.1%-
BVPS (₹) 28.930.732.435.13942.245.448.349.450.852.7
Adj Net Profit 13.422.42231.634.236.537.5328.210.129
Cash Flow from Ops. 60.542.82645.22833.374.731.782.6-12.9-
Debt/CF from Ops. 1.52.13.82.12.82.92.77.12.6-21.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.9%10.1%2.7%50.8%
Adj EPS -3.1%-21.7%-35.4%22.1%
BVPS 6.55.43.82.7
Share Price 15% -3.3% 19% 15.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 5.48.6810.810.610.39.87.91.92.36.4
Op. Profit Mgn % 6.59.48.311.411.29.58.88.57.66.36.5
Net Profit Mgn % 2.74.345.65.94.94.45.71.31.12.6
Debt to Equity 0.40.30.40.30.20.30.50.50.50.60.3
Working Cap Days 1049194100110114121180167142149
Cash Conv. Cycle 2930394448516195877337

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 6.40%

Debt to equity has declined versus last 3 years average to 0.63

Sales growth is good in last 4 quarters at 35.75%

Sales growth has been subdued in last 3 years 2.69%

Net Profit has been subdued in last 3 years -35.44%

Latest Financials - Nelcast Ltd.

Standalone Consolidated
TTM EPS (₹) 3.3 3.3
TTM Sales (₹ Cr.) 1,124 1,124
BVPS (₹.) 52.7 52.7
Reserves (₹ Cr.) 441 441
P/BV 1.65 1.65
PE 26.34 26.34
From the Market
52 Week Low / High (₹) 50.10 / 98.00
All Time Low / High (₹) 3.32 / 109.40
Market Cap (₹ Cr.) 757
Equity (₹ Cr.) 17.4
Face Value (₹) 2
Industry PE 15.8

Management X-Ray of Nelcast :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Nelcast

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Nelcast Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Nelcast on 25-Nov-2022 18:01 is : 87.05.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 25-Nov-2022 18:01 the market cap of Nelcast stood at ₹ 757.4.
The latest PE ratio of Nelcast as of 25-Nov-2022 18:01 is 26.34.
The latest PB ratio of Nelcast as of 25-Nov-2022 18:01 is 1.65
The 52-week high of Nelcast is ₹ 98.00 and the 52-week low is ₹ 50.10.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Nelcast is ₹ 1,124 ( Cr.) .

About Nelcast Ltd

Established in 1985, Nelcast has since been a significant and diligent participant in the ferrous casting industry, producing superior quality castings for many an industry. Nelcast has shown an astounding growth rate, growing 140 times its original size to reach its current capacity of 84,000 MT. It plans to double that capacity in about two years.

Catering to the commercial vehicle Industry since 1985 and the ttractor industry since 1990, Nelcast has diversified into various other industries to increasingly fulfill their casting needs. Today, Nelcast is one of India’s largest suppliers of the finest ductile iron and grey iron castings ranging from 0.5 kgs to 250 kgs in weight. Climbing its way up the ladder of competition, Nelcast’s focus continues to be on meeting international standards of quality at competitive prices.

Given the exacting production processes and the distinct identities and attributes of the final product, the company moved towards accordance with international standards.

Despite its high degree of documented certification, Nelcast continues to nourish its grass root principles of continually maintaining high standards of precision and quality. Nelcast currently supplies components to a wide spectrum of customers and is committed to satisfy the varying and diverse customer requirements. Having been accustomed to variety and challenges Nelcast is incessantly on the look out for even more exacting products.

With two manufacturing units located in Gudur, AP and Ponneri, TN both in South India, Nelcast is one of the largest in the foundry industry. Nelcast has a specific, yet continuous production process that caters to every function needed to produce a technologically acceptable casting component. Complete with melting, moulding and core shops to development and quality control, Nelcast takes every step necessary to creating the right component for every client in the shortest span of time.

Product range of the company includes:

Nelcast products range from industry to industry. Though primarily manufacturing casting components, Nelcast has a wide range of products.

Automobiles

  • Wheel Hubs
  • Brake Drums
  • Differential Carriers & Axle Housing
  • Slide Support
  • Shackles
  • Brackets

Trailers

  • Foot Mounting & Torque Rod

Engines

  • Cylinder Blocks
  • Heads
  • Fly Wheels
  • Fly Wheel Housing
  • Crank Shaft
  • Bearing Cap
  • Engine Support
  • Exhaust Manifolds

Tractors

  • Transmission Case
  • Centre Housing
  • Rear Axle Housing
  • Hydraulic Lift Cover

Railways

  • Inserts/Shoulders for Concrete Sleepers

Pipe Fittings

  • Ductile Iron Fittings - Size4' & Above

Achievements/ recognition:

  • 1994 – ISO 9002 Accreditation
  • 2001 – QS 9000 Accreditation
  • 2005 – TS 16949 Accreditation
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