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Nesco Ltd. Stock Analysis

Small Cap
Evaluated by 2271 users | BSE: 505355 | NSE: NESCO |
Engineering - Industrial Equipments
Nesco, incorporated in 1946 as New Standard Engineering Company, is a pioneer in the tool manufacturing segment. The company brought into the country world class processes and designs for the manufacture of a number of engineering products.The company manufactures equipments such as forging...
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 17.8% 11.6% -0.4% -9.7%
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 68.53%
Institutions 7.64%
Non-Institutions 23.82%
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 11.6% 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% annually over the past ten years.

Nesco, incorporated in 1946 as New Standard Engineering Company, is a pioneer in the tool manufacturing segment. The company brought into the country world class processes and designs for the manufacture of a number of engineering products.

The company manufactures equipments such as forging hammers and presses, blowroom lines and high production cards for the textile industry and sucker rod pumps for on-shore oil recovery. These equipments have emerged as market leaders. Today, the

Nesco, incorporated in 1946 as New Standard Engineering Company, is a pioneer in the tool manufacturing segment. The company brought into the country world class processes and designs for the manufacture of a number of engineering products.

The company manufactures equipments such as forging hammers and presses, blowroom lines and high production cards for the textile industry and sucker rod pumps for on-shore oil recovery. These equipments have emerged as market leaders. Today, the engineering group of Nesco continues to be a leading provider of these equipments to the Indian Railways, numerous ordnance factories and forging plants.

Originally, the company operated from Byculla in Mumbai and later set up two more plants at Parel and Santacruz. In 1959, it consolidated all three operations and moved to a 70 acre estate on the Western Express Highway at Goregaon in Mumbai.

In 1986, the company diversified into the realty business by developing and providing customized built-up space for multinational companies and leading corporates at Goregaon.

In 1992, the company setup an exhibition centre -- known as the Bombay Exhibition Centre -- at its complex at Goregaon. Starting with a hall area of 2,00,000 sq. ft., this has now been expanded to over 5,00,000 sq. ft. This venue holds the distinction of being the largest exhibition center promoted by the private sector in India and has hosted over 500 national and international exhibitions, trade fairs and events since inception.

In 2001, the name of the company was changed to Nesco, with an aim reflect on the various new avenues that it is was entering into.

It became the first to bring into India the world class manufacturing process and product designs for forging tools and pumps for on-shore oil recovery.

It operates the first private exhibition centre located in the heart of Mumbai, adjacent to the Western Express Highway, which serves as an important arterial road transporting goods to and from the city. Some of the exhibitions conducted includes Reed Exhibitions, Wordex; GattaCa Communication, UK, Famdent, Virtual Info Systems, etc. Nesco is a 100% debt free company with considerable cash reserves.

Future Plans

Nesco plans to augment its production capacity by installing new machinery and machine tools. It also constructing IT Building No. 3 spread over on area of 800,000 sq ft, which will be operational shortly.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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