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Nesco Ltd Stock Analysis

Small Cap
Evaluated by 2413 users | BSE: 505355 | NSE: NESCO |
Engineering - Industrial Equipments

Nesco Limited was incorporated on April 15, 1946, under the Indian Companies Act VII of 1913. The Company is domiciled in India having registered office at Nesco Center, Western Express Highway, Goregaon (East), Mumbai and listed on the BSE Limited (BSE) and...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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.
Nesco Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 28.85%26.36%25.03%20.51%22.84%24.09%22.58%19.43%16.86%18.87%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 116128143161194261306304360432
Y-o-Y Gr. Rt.-10%12.1%12.3%20.7%34.4%17%-0.7%18.7%19.8%
Adjusted EPS (Rs.) 7.979.5511.5811.715.8420.4824.0525.0825.5733.18
Y-o-Y Gr. Rt.-19.8%21.3%1%35.4%29.3%17.4%4.3%2%29.8%
Book Value per Share (Rs.) 32.3341.1851.9562.2776.695.79119.81143.16165.74192.26
Adjusted Net Profit 56.267.381.682.5112144169177180234
Net Op. Cash Flow (Rs. Cr.) 78.472.655.4117103137152143171209
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Nesco Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 15.7%17.3%12.2%19.8%
Adjusted EPS 17.2%15.9%11.3%29.8%
Book Value per Share 21.920.217.116
Share Price 15.2% 9.7% -5.2% 2.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 28.6325.9924.8820.522.8223.6422.1219.0116.5618.54
Operating Profit Margin (%) 64.0170.4570.3768.1471.1572.2569.9771.0164.5564.47
Net Profit Margin (%) 48.2652.5856.8951.1957.4155.2455.4258.195054.16
Debt to Equity 0000000000
Working Capital Days 11271545348771051098999
Cash Conversion Cycle -37-47-38-30-30-16-48-50-10-14
Entity Percentage Holding
Promoters 68.54%
Institutions 7.43%
Non-Institutions 24.04%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Nesco Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Nesco Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Nesco Ltd's performance infers:

Nesco Ltd earnings have grown by 15.9%, whereas share price has appreciated 9.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Nesco Ltd share prices over the last 10 years. Here is what we found out:

Nesco Ltd share price has appreciated 16.9% annually over the past ten years.

Nesco Limited was incorporated on April 15, 1946, under the Indian Companies Act VII of 1913. The Company is domiciled in India having registered office at Nesco Center, Western Express Highway, Goregaon (East), Mumbai and listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).

With business verticals as varied as exhibitions, events, hospitality, MICE and realty, the company’s

Nesco Limited was incorporated on April 15, 1946, under the Indian Companies Act VII of 1913. The Company is domiciled in India having registered office at Nesco Center, Western Express Highway, Goregaon (East), Mumbai and listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).

With business verticals as varied as exhibitions, events, hospitality, MICE and realty, the company’s steady expansion augments its growth as it watches several new ideas find form. With the continued expansion of the Bombay Exhibition Center (BEC), there is now a versatile solution for any trade fair. The BEC is already India’s largest exhibition venue in the private sector, hosting all the Messe’s as well as organisers from across the globe.

Nesco Realty carved a new benchmark with its premium IT Park. A self-sustained facility, the Park is laid out over several million square feet. It accommodates the world’s leading multinationals such as HSBC, KPMG, PWC, MSCI, BlackRock and several others. The division is now looking to offer maximum value, comfort, luxury and style in the housing market.

Indabrator, its engineering division is a pioneer in the surface-preparation category. Backed by best-in-class technology, Indabrator boasts of the finest manufacturing units. Today, it remains a company with impressive market share and multiple innovations in the pipeline.

The company’s foray into the event space has been buoyed with excitement. Nesco Events has created unique properties that have quickly become resounding successes. This is taking the business off to an impressive start and is enhancing the Group’s strengths to deliver quality entertainment to a burgeoning audience of eager enthusiasts.

Nesco Foods caters to all levels of social, business and luxury events. It is one of Mumbai’s most preferred hospitality providers, well-recognised for their varied capability and array of cuisines. The division operates the largest non-flight kitchen in the city.

Business area of the company

The Company is mainly engaged in the following:

  • Licencing premises in IT park buildings and providing related services.
  • Licencing premises for exhibitions and providing services to the organisers.
  • Manufacturing of machines and capital equipment.
  • Hospitality and catering services

Milestones

  • 1939: The founder, Shri. J.V. Patel manifests his vision as the Standard Engineering Company (SEC).
  • 1952: By this time, SEC was taking over & reviving the fortunes of several struggling companies to build an engineering powerhouse.
  • 1956: The acquisition of Burjorji Pestonji & Son re-christens the company as the New Standard Engineering.
  • 1957: New Standard Engineering collaborates with B&S Massey Ltd to become the first manufacturer in India for forging hammers & presses.
  • 1958: The Company launches its public issue, which is quickly oversubscribed.
  • 1960: Sumant Patel founds the Gujarat Machinery Manufacturers Ltd which later becomes GMM Pfaudler Ltd.
  • 1962: The New Standard Engineering Company is known to have the largest foundry in the private sector, making specialised castings for the company's forging equipment product line.
  • 1964: Indabrator is born, on the basis of a joint venture signed with Wheelabrator Corporation, USA for the manufacturing of shot-blasting equipment in India.
  • 1986: New Standard Engineering diversifies into realty and the Group welcomes a new sector.
  • 1992: The 200,000 square feet Bombay Exhibition Center develops into the largest center for exhibitions in the private sector in India.
  • 2001: The Company rebrands itself as Nesco Limited in light of further diversification and business verticals.
  • 2015: The beginning of Nesco Foods. Mumbai gains one of the largest and most hygienic food production centers in the non-flight category, serving 50,000 meals per day.
  • 2016: Nesco Events comes to life, delighting patrons with intellectual properties, exhibitions and private events.
  • 2019: NESCO & WEVIO organized - Technology Transfer Meet between Indian Companies and South Korean Delegation.
  • 2021: Tata Power on Monday announced that it has received the Letter of Intent (LoI) from Odisha Electricity Regulatory Commission (OERC) for distribution and retail supply electricity in five circles of Nesco.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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