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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 504112 | NSE: NELCO

Fundamental Analysis of NELCO Ltd

About the Company - NELCO Ltd

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

Basic Stock Data of NELCO Ltd

Last Updated: June 20, 2024, 10:33 pm

Market Cap 1,830 Cr.
Current Price 800
High / Low894/643
Stock P/E77.5
Book Value 54.2
Dividend Yield0.27 %
ROCE23.4 %
ROE20.7 %
Face Value 10.0
PEG Ratio7.69

Competitors of NELCO Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ADC India Communications Ltd 732 Cr. 1,5901,650/67735.4 1540.25 %45.2 %33.7 % 10.0
Indus Towers Ltd 90,631 Cr. 336370/15715.0 1000.00 %20.2 %25.1 % 10.0
Optiemus Infracom Ltd 2,371 Cr. 276381/20141.8 49.70.54 %15.4 %14.0 % 10.0
Avantel Ltd 4,246 Cr. 175194/44.776.6 7.050.11 %47.5 %39.2 % 2.00
MRO-TEK Realty Ltd 148 Cr. 79.4116/51.141.2 37.20.00 %7.50 %5.32 % 5.00
Industry Average15,963.65 Cr359.9426.2548.860.11%18.24%18.67%8.38

NELCO Ltd Quarterly Results

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: April 10, 2024, 4:20 am

NELCO Ltd Quarterly Chart

NELCO Ltd Profit & Loss

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales132161135123200144150191220226260313312
Expenses137147133124178125124155170181209252251
Operating Profit-6132-1221825365045516260
OPM %-4%8%1%-1%11%13%17%19%23%20%19%20%19%
Other Income55019556443532
Interest89107138671310897
Depreciation89991189132022252825
Profit before tax-161-1722715202016232830
Tax %4%19%2%24%0%9%20%-11%29%22%31%29%
Net Profit-161-1722612221412162022
EPS in Rs-6.810.45-7.290.850.972.755.319.776.305.427.058.709.67
Dividend Payout %0%111%0%0%0%0%0%15%19%22%26%23%

NELCO Ltd 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%

NELCO Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:11%
3 Years:12%
TTM:2%
Compounded Profit Growth
10 Years:13%
5 Years:1%
3 Years:25%
TTM:19%
Stock Price CAGR
10 Years:31%
5 Years:23%
3 Years:47%
1 Year:14%
Return on Equity
10 Years:23%
5 Years:20%
3 Years:20%
Last Year:21%

Last Updated: June 12, 2024, 8:46 pm

NELCO Ltd Balance Sheet

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital23232323232323232323232323
Reserves1010-7-6-7-111334353668288
Borrowings538981668557508212190816374
Other Liabilities89626763555278999372939595
Total Liabilities175183164146156131162237280238263262280
Fixed Assets42393735283651871171081109594
CWIP10136351734315
Investments8888956000003
Other Assets1251371189911387101134160126150165177
Total Assets175183164146156131162237280238263262280

NELCO Ltd Reserves and Borrowings Chart

NELCO Ltd Cash Flow

MonthSep 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 42-272633338322133545158
Cash from Investing Activity -10-6-8-7-8-3-14-45-40-8-18-25
Cash from Financing Activity -3131-18-245-40-12254-47-19-33
Net Cash Flow0-2-110-562-2-1141

NELCO Ltd 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%

NELCO Ltd Financial Efficiency Indicators Chart

NELCO Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%
FIIs3.07%3.22%3.22%3.36%3.34%7.26%6.11%4.42%4.34%4.44%4.51%4.54%
DIIs0.05%3.86%3.86%3.85%3.86%0.05%0.05%0.05%0.05%0.09%0.08%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%
Public46.55%42.59%42.59%42.45%42.47%42.36%43.52%45.21%45.28%45.13%45.07%45.08%
No. of Shareholders27,50642,05358,45060,25660,35760,27162,61365,56767,24270,53469,07772,703

NELCO Ltd Shareholding Pattern Chart

No. of NELCO Ltd Shareholders

This stock is not held by any mutual fund

NELCO Ltd ROCE Trend

NELCO Ltd EPS Trend

NELCO Ltd 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) (%)0.0020.7017.0322.1623.85
Dividend Payout Ratio (CP) (%)0.008.626.727.909.97
Earning Retention Ratio (%)0.0079.3082.9777.8476.15
Cash Earning Retention Ratio (%)0.0091.3893.2892.1090.03
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 (%)0.0079.2982.9677.8376.14
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

NELCO Ltd Profitability Ratios (%)

NELCO Ltd Liquidity Ratios

NELCO Ltd Liquidity Ratios (%)

NELCO Ltd Interest Coverage Ratios (X)

NELCO Ltd Valuation Ratios

Fair Value

Fair Value: 871.85

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.

Undervalued: 8.98% compared to the current price 800

Intrinsic Value: 959.67

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 19.96% compared to the current price ₹800

Last 5 Year EPS CAGR: 10.07%

*Investments are subject to market risks

Strength and Weakness of NELCO Ltd

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 (76.31) compared to reserves (28.85), which may suggest financial risk.

Should I Buy NELCO Ltd Share Now?

  • 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 NELCO Ltd:
    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: 25.66%)
      • 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: 22.4%)
      • 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: 0.90
      • 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: 77.5 (Industry average Stock P/E: 28.92)
      • 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:

FAQ

What is the latest fair value of NELCO Ltd?

The latest fair value of NELCO Ltd is ₹871.85.

What is the Market Cap of NELCO Ltd?

The Market Cap of NELCO Ltd is 1,830 Cr..

What is the current Stock Price of NELCO Ltd as on 21 June 2024?

The current stock price of NELCO Ltd as on 21 June 2024 is ₹800.

What is the High / Low of NELCO Ltd stocks in FY 2024?

In FY 2024, the High / Low of NELCO Ltd stocks is 894/643.

What is the Stock P/E of NELCO Ltd?

The Stock P/E of NELCO Ltd is 77.5.

What is the Book Value of NELCO Ltd?

The Book Value of NELCO Ltd is 54.2.

What is the Dividend Yield of NELCO Ltd?

The Dividend Yield of NELCO Ltd is 0.27 %.

What is the ROCE of NELCO Ltd?

The ROCE of NELCO Ltd is 23.4 %.

What is the ROE of NELCO Ltd?

The ROE of NELCO Ltd is 20.7 %.

What is the Face Value of NELCO Ltd?

The Face Value of NELCO Ltd 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 NELCO Ltd. 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