ScoreWhy is NELCO Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate -22.60% of over the last 5 years
2
Flat results in Mar 26
- PBT LESS OI(Q) At Rs -0.18 cr has Fallen at -126.6% (vs previous 4Q average)
- ROCE(HY) Lowest at 6.58%
- DEBT-EQUITY RATIO(HY) Highest at 0.57 times
3
Stock is technically in a Mildly Bearish range
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROCE of 4.7, it has a Very Expensive valuation with a 8.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -26.21%, its profits have fallen by -25.2%
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 0.10% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -26.21% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to NELCO should be less than 10%
- Overall Portfolio exposure to IT - Hardware should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NELCO for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NELCO
18.3%
-0.62
42.35%
Sensex
-3.1%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.12%
EBIT Growth (5y)
-22.80%
EBIT to Interest (avg)
3.73
Debt to EBITDA (avg)
1.46
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
1.66
Tax Ratio
27.44%
Dividend Payout Ratio
68.73%
Pledged Shares
0
Institutional Holding
5.92%
ROCE (avg)
16.93%
ROE (avg)
13.83%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
333
Industry P/E
45
Price to Book Value
17.75
EV to EBIT
260.25
EV to EBITDA
80.29
EV to Capital Employed
12.90
EV to Sales
7.50
PEG Ratio
204.67
Dividend Yield
0.10%
ROCE (Latest)
4.75%
ROE (Latest)
5.53%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
PAT(Latest six months)
Higher at Rs 2.64 cr
DPR(Y)
Highest at 68.73%
NET SALES(Q)
Highest at Rs 80.03 cr
PBDIT(Q)
Highest at Rs 8.32 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 10.40%
PBT LESS OI(Q)
Highest at Rs 1.93 cr.
EPS(Q)
Highest at Rs 1.03
-9What is not working for the Company
OPERATING CF(Y)
Lowest at Rs 15.26 Cr
ROCE(HY)
Lowest at 6.58%
INTEREST(Q)
At Rs 1.27 cr has Grown at 126,999,900.00%
DEBT-EQUITY RATIO(HY)
Highest at 0.57 times
Loading Valuation Snapshot...
Here's what is working for NELCO
Profit After Tax (PAT) - Latest six months
At Rs 2.64 cr has Grown at 215.68%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1.93 cr has Grown at 91.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1.01 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Latest six months
Higher at Rs 2.64 cr
than preceding 12 month period ended Jun 2026 of Rs 1.96 crMOJO Watch
In the half year the company has already crossed PAT of the previous twelve months
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 80.03 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 8.32 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 10.40%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1.93 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.03
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Highest at 68.73%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for NELCO
Operating Cash Flow - Annually
Lowest at Rs 15.26 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Interest - Quarterly
At Rs 1.27 cr has Grown at 126,999,900.00%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.57 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
