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Last Updated on: 27 February, 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, MIDC Electronic Zone, 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 N MurthyDirector
Dr. Lakshmi NadkarniDirector
Mr. Ajay Kumar PandeyDirector

Nelco Ltd. Share Price Update

Share PriceValue
Today₹783.65
Previous Day₹788.55

Basic Stock Data of NELCO Ltd

Market Cap 1,799 Cr.
Current Price 788
High / Low894/486
Stock P/E77.4
Book Value 48.6
Dividend Yield0.25 %
ROCE21.6 %
ROE20.5 %
Face Value 10.0

Data Source: screener.in

Competitors of NELCO Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ADC India Communications Ltd 487 Cr. 1,0601,125/47537.8 1250.39 %21.8 %16.0 % 10.0
MRO-TEK Realty Ltd 152 Cr. 81.694.7/50.629.6 33.10.00 %1.77 %5.55 % 5.00
Optiemus Infracom Ltd 2,617 Cr. 305381/16052.4 44.90.48 %13.5 %11.7 % 10.0
Shyam Telecom Ltd 15.1 Cr. 13.413.8/6.01 21.20.00 %%% 10.0
Prabhat Technologies (India) Ltd 107 Cr. 100330/0.00 27.80.00 %2.10 %3.87 % 10.0
Industry Average675.62 Cr312.0023.9650.400.17%7.83%7.42%9.00

NELCO Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales53.2258.5564.8355.1061.2272.0671.6981.6875.4474.2381.9878.8076.65
Expenses43.1447.0751.5542.9749.7457.7859.1567.0961.2559.1065.1664.3662.74
Operating Profit10.0811.4813.2812.1311.4814.2812.5414.5914.1915.1316.8214.4413.91
OPM %18.94%19.61%20.48%22.01%18.75%19.82%17.49%17.86%18.81%20.38%20.52%18.32%18.15%
Other Income0.920.290.831.520.241.441.540.290.740.720.850.380.44
Interest2.452.221.921.821.662.071.831.931.931.802.071.541.68
Depreciation5.465.555.895.715.526.407.026.286.716.847.955.225.12
Profit before tax3.094.006.306.124.547.255.236.676.297.217.658.067.55
Tax %28.16%4.50%28.89%28.43%25.11%27.45%42.07%29.24%28.93%30.65%26.01%28.91%24.64%
Net Profit2.223.824.484.383.405.263.034.724.475.005.665.735.69
EPS in Rs0.971.671.961.921.492.311.332.071.962.192.482.512.49

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:7%
5 Years:16%
3 Years:13%
TTM:6%
Compounded Profit Growth
10 Years:35%
5 Years:11%
3 Years:14%
TTM:35%
Stock Price CAGR
10 Years:35%
5 Years:27%
3 Years:53%
1 Year:26%
Return on Equity
10 Years:18%
5 Years:24%
3 Years:19%
Last Year:21%

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 2011Sep 2012Sep 2013Sep 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days184173152114798513411511710210996
Inventory Days1181031321456913017685123148129153
Days Payable362187292341268340644391443455437324
Cash Conversion Cycle-6088-8-81-120-125-334-191-203-205-198-75
Working Capital Days10015298535217-15-24-1222137
ROCE %-11%7%-6%5%15%17%26%25%20%14%18%22%

NELCO Ltd Financial Efficiency Indicators Chart

NELCO Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%50.09%
FIIs1.55%1.75%3.07%3.22%3.22%3.36%3.34%7.26%6.11%4.42%4.34%4.44%
DIIs3.86%3.86%0.05%3.86%3.86%3.85%3.86%0.05%0.05%0.05%0.05%0.09%
Government0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%
Public44.26%44.06%46.55%42.59%42.59%42.45%42.47%42.36%43.52%45.21%45.28%45.13%
No. of Shareholders29,67830,69027,50642,05358,45060,25660,35760,27162,61365,56767,24270,534

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 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)8.707.055.426.309.77
Diluted EPS (Rs.)8.707.055.426.309.77
Cash EPS (Rs.)20.8717.8415.1915.0715.41
Book Value[Excl.RevalReserv]/Share (Rs.)45.8139.0233.2128.8724.47
Book Value[Incl.RevalReserv]/Share (Rs.)45.8139.0233.2128.8724.47
Revenue From Operations / Share (Rs.)137.30113.9799.0996.3883.70
PBDIT / Share (Rs.)27.7524.2420.9122.9017.65
PBIT / Share (Rs.)15.5813.4411.1314.1311.97
PBT / Share (Rs.)12.1910.146.968.888.73
Net Profit / Share (Rs.)8.707.055.426.309.73
NP After MI And SOA / Share (Rs.)8.707.055.426.309.77
PBDIT Margin (%)20.2121.2721.0923.7621.08
PBIT Margin (%)11.3411.7911.2314.6514.29
PBT Margin (%)8.878.907.029.2110.43
Net Profit Margin (%)6.336.185.466.5311.62
NP After MI And SOA Margin (%)6.336.185.466.5311.66
Return on Networth / Equity (%)18.9818.0516.3121.8239.91
Return on Capital Employeed (%)24.8223.5822.2130.6628.78
Return On Assets (%)7.566.105.025.139.39
Long Term Debt / Equity (X)0.170.210.190.440.60
Total Debt / Equity (X)0.360.610.691.491.22
Asset Turnover Ratio (%)0.890.700.160.170.19
Current Ratio (X)1.200.920.750.660.71
Quick Ratio (X)1.020.800.660.600.65
Dividend Payout Ratio (NP) (%)20.7017.0322.1623.850.00
Dividend Payout Ratio (CP) (%)8.626.727.909.970.00
Earning Retention Ratio (%)79.3082.9777.8476.150.00
Cash Earning Retention Ratio (%)91.3893.2892.1090.030.00
Interest Coverage Ratio (X)8.197.355.013.985.46
Interest Coverage Ratio (Post Tax) (X)3.573.142.302.014.01
Enterprise Value (Cr.)1202.461669.46473.35391.51685.70
EV / Net Operating Revenue (X)3.846.422.091.783.59
EV / EBITDA (X)18.9930.189.927.4917.03
MarketCap / Net Operating Revenue (X)3.776.271.901.403.26
Retention Ratios (%)79.2982.9677.8376.140.00
Price / BV (X)11.3018.325.684.6611.17
Price / Net Operating Revenue (X)3.776.271.901.403.26
EarningsYield0.010.010.020.040.03

NELCO Ltd Profitability Ratios (%)

NELCO Ltd Liquidity Ratios

NELCO Ltd Liquidity Ratios (%)

NELCO Ltd Interest Coverage Ratios (X)

NELCO Ltd Valuation Ratios

Fair Value / Intrinsic Value of NELCO Ltd

Fair Value: ₹773.06

The stock is overvalued by 1.90% compared to the current price ₹788

*Investments are subject to market risks

Strength and Weakness of NELCO Ltd

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -126.00, which is a positive sign.
  2. The company has shown consistent growth in sales (198.15 cr) and profit (10.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 13.25 and average Dividend Yield of 12.66%.
  2. The stock has a low average ROCE of 12.67%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 42.67, which may not be favorable.
  4. 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 various financial indicators, investors might exercise caution regarding investment in NELCO Ltd:
    1. Net Profit Margin: 6.33%
      • 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: 24.82% (Industry Average ROCE: 7.83%)
      • 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. Interest Coverage Ratio (Post Tax): 3.57
      • 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.
    4. Quick Ratio: 1.02
      • 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.
    5. ✗ Stock P/E: 74.2 (Industry average Stock P/E: 23.54)
      • 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.
    6. ✓ Total Debt / Equity: 0.36
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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