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Last Updated on: 21 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 504112 | NSE: NELCO

NELCO Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:07 am

Market Cap 3,025 Cr.
Current Price 1,326
High / Low 1,503/643
Stock P/E145
Book Value 55.7
Dividend Yield0.17 %
ROCE23.4 %
ROE20.7 %
Face Value 10.0
PEG Ratio14.39

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Munoth Communication Ltd 15.0 Cr. 15.6 20.0/8.60 14.90.00 %1.61 %4.27 % 10.0
Indus Towers Ltd 90,846 Cr. 337 461/18212.0 1050.00 %22.1 %24.2 % 10.0
Avantel Ltd 3,898 Cr. 160 224/86.063.2 8.450.12 %47.5 %39.2 % 2.00
ADC India Communications Ltd 817 Cr. 1,776 2,310/81028.2 1580.28 %45.2 %33.7 % 10.0
Shyam Telecom Ltd 28.4 Cr. 25.2 35.0/8.46 24.00.00 %%% 10.0
Industry Average15,683.00 Cr417.0756.9642.400.06%18.64%18.28%8.17

All Competitor Stocks of

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales58.5564.8355.1061.2272.0671.6981.6875.4474.2381.9878.8076.6583.24
Expenses47.0751.5542.9749.7457.7859.1567.0961.2559.1065.1664.3662.7466.92
Operating Profit11.4813.2812.1311.4814.2812.5414.5914.1915.1316.8214.4413.9116.32
OPM %19.61%20.48%22.01%18.75%19.82%17.49%17.86%18.81%20.38%20.52%18.32%18.15%19.61%
Other Income0.290.831.520.241.441.540.290.740.720.850.380.410.84
Interest2.221.921.821.662.071.831.931.931.802.071.541.681.91
Depreciation5.555.895.715.526.407.026.286.716.847.955.225.125.85
Profit before tax4.006.306.124.547.255.236.676.297.217.658.067.529.40
Tax %4.50%28.89%28.43%25.11%27.45%42.07%29.24%28.93%30.65%26.01%28.91%24.73%37.66%
Net Profit3.824.484.383.405.263.034.724.475.005.665.735.696.15
EPS in Rs1.671.961.921.492.311.332.071.962.192.482.512.492.70

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales132161135123200144150191220226260313321
Expenses137147133124178125124155170181209252259
Operating Profit-6132-1221825365045516261
OPM %-4%8%1%-1%11%13%17%19%23%20%19%20%19%
Other Income55019556443532
Interest89107138671310897
Depreciation89991189132022252824
Profit before tax-161-1722715202016232833
Tax %4%19%2%24%0%9%20%-11%29%22%31%29%
Net Profit-161-1722612221412162023
EPS in Rs-6.810.45-7.290.850.972.755.319.776.305.427.058.7010.18
Dividend Payout %0%111%0%0%0%0%0%15%19%22%26%23%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)200.00%100.00%83.33%-36.36%-14.29%33.33%25.00%
Change in YoY Net Profit Growth (%)0.00%-100.00%-16.67%-119.70%22.08%47.62%-8.33%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:11%
3 Years:12%
TTM:3%
Compounded Profit Growth
10 Years:13%
5 Years:1%
3 Years:25%
TTM:-5%
Stock Price CAGR
10 Years:33%
5 Years:42%
3 Years:22%
1 Year:65%
Return on Equity
10 Years:23%
5 Years:20%
3 Years:20%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:59 pm

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital23232323232323232323232323
Reserves10-7-6-7-1113343536682101104
Borrowings898166855750821219081635751
Other Liabilities6267635552789993729395102105
Total Liabilities183164146156131162237280238263262282283
Fixed Assets39373528365187117108110958783
CWIP013635173431109
Investments8889560000044
Other Assets1371189911387101134160126150165181186
Total Assets183164146156131162237280238263262282283

Reserves and Borrowings Chart

Cash Flow

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-27263333832213354515845
Cash from Investing Activity +-6-8-7-8-3-14-45-40-8-18-25-19
Cash from Financing Activity +31-18-245-40-12254-47-19-33-20
Net Cash Flow-2-110-562-2-11416

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2011Sep 2012Sep 2013Sep 2014
Free Cash Flow-63.00-39.00-25.00-46.00-71.00-45.00-30.00-1.00-6.00-76.00-79.00-67.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthSep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days17315211479851341151171021099697
Inventory Days1031321456913017685123148129153268
Days Payable187292341268340644391443455437324364
Cash Conversion Cycle88-8-81-120-125-334-191-203-205-198-750
Working Capital Days15298535217-15-24-122213732
ROCE %7%-6%5%15%17%26%25%20%14%18%22%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%
FIIs3.22%3.22%3.36%3.34%7.26%6.11%4.42%4.34%4.44%4.51%4.54%4.80%
DIIs3.86%3.86%3.85%3.86%0.05%0.05%0.05%0.05%0.09%0.08%0.05%0.05%
Government0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Public42.59%42.59%42.45%42.47%42.36%43.52%45.21%45.28%45.13%45.07%45.08%44.82%
No. of Shareholders42,05358,45060,25660,35760,27162,61365,56767,24270,53469,07772,70372,952

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.378.707.055.426.30
Diluted EPS (Rs.)10.378.707.055.426.30
Cash EPS (Rs.)19.8720.8717.8415.1915.07
Book Value[Excl.RevalReserv]/Share (Rs.)54.1545.8139.0233.2128.87
Book Value[Incl.RevalReserv]/Share (Rs.)54.1545.8139.0233.2128.87
Revenue From Operations / Share (Rs.)140.36137.30113.9799.0996.38
PBDIT / Share (Rs.)27.0627.7524.2420.9122.90
PBIT / Share (Rs.)17.3615.5813.4411.1314.13
PBT / Share (Rs.)14.4812.1910.146.968.88
Net Profit / Share (Rs.)10.178.707.055.426.30
NP After MI And SOA / Share (Rs.)10.378.707.055.426.30
PBDIT Margin (%)19.2720.2121.2721.0923.76
PBIT Margin (%)12.3611.3411.7911.2314.65
PBT Margin (%)10.318.878.907.029.21
Net Profit Margin (%)7.246.336.185.466.53
NP After MI And SOA Margin (%)7.386.336.185.466.53
Return on Networth / Equity (%)19.1518.9818.0516.3121.82
Return on Capital Employeed (%)27.7724.8223.5822.2130.66
Return On Assets (%)8.397.566.105.025.13
Long Term Debt / Equity (X)0.000.170.210.190.44
Total Debt / Equity (X)0.260.360.610.691.49
Asset Turnover Ratio (%)1.180.890.700.160.17
Current Ratio (X)1.091.200.920.750.66
Quick Ratio (X)0.901.020.800.660.60
Dividend Payout Ratio (NP) (%)19.2620.7017.0322.1623.85
Dividend Payout Ratio (CP) (%)9.958.626.727.909.97
Earning Retention Ratio (%)80.7479.3082.9777.8476.15
Cash Earning Retention Ratio (%)90.0591.3893.2892.1090.03
Interest Coverage Ratio (X)9.408.197.355.013.98
Interest Coverage Ratio (Post Tax) (X)4.533.573.142.302.01
Enterprise Value (Cr.)1592.551202.461669.46473.35391.51
EV / Net Operating Revenue (X)4.973.846.422.091.78
EV / EBITDA (X)25.7918.9930.189.927.49
MarketCap / Net Operating Revenue (X)4.943.776.271.901.40
Retention Ratios (%)80.7379.2982.9677.8376.14
Price / BV (X)12.8011.3018.325.684.66
Price / Net Operating Revenue (X)4.943.776.271.901.40
EarningsYield0.010.010.010.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 1,674.68

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Undervalued by 26.30% compared to the current share price 1,326.00

Intrinsic Value of as of December 21, 2024 is: 1,843.37

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Undervalued by 39.02% compared to the current share price 1,326.00

Last 5 Year EPS CAGR: 10.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.50%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -121.00, which is a positive sign.
  3. The company has shown consistent growth in sales (198.15 cr) and profit (10.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 37.00, which may not be favorable.
  2. The company has higher borrowings (74.85) compared to reserves (37.08), which may suggest financial risk.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 7.24%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.77% (Industry Average ROCE: 18.64%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.15% (Industry Average ROE: 18.28%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.53
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.9
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 145 (Industry average Stock P/E: 56.96)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.26
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Nelco Ltd. is a Public Limited Listed company incorporated on 31/08/1940 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L32200MH1940PLC003164 and registration number is 003164. Currently Company is involved in the business activities of Installation of telecommunications wiring, computer network and cable television wiring, including fibre optic, satellite dishes. Company’s Total Operating Revenue is Rs. 143.16 Cr. and Equity Capital is Rs. 22.82 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom EquipmentEL-6, TTC Industrial Area, New Mumbai Maharashtra 400710services@nelco.in
https://www.nelco.in
Management
NamePosition Held
Mr. A S LakshminarayananChairman
Mr. P J NathManaging Director & CEO
Mr. Saurabh RayDirector
Mr. K Narasimha MurthyDirector
Dr. Lakshmi NadkarniDirector
Mr. Ajay Kumar PandeyDirector

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹1674.68, which is 26.30% higher than the current market price of ₹1,326.00. The stock has a market capitalization of 3,025 Cr. and recorded a high/low of 1,503/643 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹104 Cr and total liabilities of ₹283 Cr.

What is the Market Cap of ?

The Market Cap of is 3,025 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 1,326.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 1,503/643.

What is the Stock P/E of ?

The Stock P/E of is 145.

What is the Book Value of ?

The Book Value of is 55.7.

What is the Dividend Yield of ?

The Dividend Yield of is 0.17 %.

What is the ROCE of ?

The ROCE of is 23.4 %.

What is the ROE of ?

The ROE of is 20.7 %.

What is the Face Value of ?

The Face Value of is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE