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Nelco Limited
(NELCO)
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Rating:46Neutral
Price Target:
₹686.00
▼(-26.53% Downside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by weakened financial performance—especially the sharp margin compression and the shift to negative free cash flow in FY2026. Technicals are mixed-to-slightly supportive on a longer-term basis but not strong near-term, and valuation is a major headwind due to the very high P/E with minimal dividend support.
Positive Factors
Recurring satellite connectivity model
Satellite connectivity and managed network services address enterprise and institutional needs, including remote locations. Contractual and recurring connectivity charges can support a durable revenue base, while end-to-end delivery broadens customer value beyond bandwidth alone.
Negative Factors
Sharp margin compression
The steep decline in net, EBIT and EBITDA margins indicates that recent revenue is producing substantially less profit. If operating efficiency or pricing pressure does not improve, weaker margins can constrain reinvestment, reduce earnings resilience, and limit the benefit of future growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring satellite connectivity model
Satellite connectivity and managed network services address enterprise and institutional needs, including remote locations. Contractual and recurring connectivity charges can support a durable revenue base, while end-to-end delivery broadens customer value beyond bandwidth alone.
Read all positive factors
Nelco Limited (NELCO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹15.97B
Dividend Yield0.14%
Average Volume (3M)10.48K
Price to Earnings (P/E)402.7
Beta (1Y)2.05
Revenue Growth6.15%
EPS Growth-7.36%
CountryIN
Employees317
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)1.69
Shares Outstanding22,818,400
10 Day Avg. Volume6,880
30 Day Avg. Volume10,476
Financial Highlights & Ratios
PEG Ratio-5.33
Price to Book (P/B)8.99
Price to Sales (P/S)3.78
P/FCF Ratio-102.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nelco Limited Business Overview & Revenue Model
Company Description
Nelco Limited, an Indian enterprise founded in 1940 and based in Navi Mumbai, operates as a subsidiary of The Tata Power Company Limited. The company specializes in providing advanced Very Small Aperture Terminal (VSAT) communication services and ...
How the Company Makes Money
NELCO primarily makes money by selling satellite connectivity and managed communication/network services to customers that require reliable connectivity (including in remote or hard-to-reach locations). Revenue is generated through service contrac...
Nelco Limited Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
60
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.12B | 3.07B | 3.05B | 3.20B | 3.13B | 2.60B |
| Gross Profit | 1.17B | 367.80M | 1.70B | 2.39B | 625.40M | 543.40M |
| EBITDA | 304.00M | 228.60M | 477.70M | 1.11B | 100.20M | 553.20M |
| Net Income | 38.60M | 33.20M | 95.30M | 236.70M | 198.50M | 160.80M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 3.47B | 2.87B | 2.82B | 2.62B | 2.63B |
| Cash, Cash Equivalents and Short-Term Investments | 193.90M | 202.50M | 180.20M | 217.90M | 161.60M | 156.50M |
| Total Debt | 0.00 | 728.40M | 525.10M | 568.70M | 631.00M | 814.80M |
| Total Liabilities | -1.29B | 2.19B | 1.60B | 1.58B | 1.58B | 1.74B |
| Stockholders Equity | 1.29B | 1.29B | 1.28B | 1.24B | 1.05B | 890.50M |
Cash Flow | ||||||
| Free Cash Flow | 20.60M | -113.10M | 30.90M | 285.80M | 329.90M | 314.50M |
| Operating Cash Flow | 111.30M | 119.70M | 196.60M | 448.90M | 580.80M | 494.30M |
| Investing Cash Flow | -85.80M | -210.40M | -165.40M | -192.20M | -249.30M | -160.80M |
| Financing Cash Flow | 130.30M | 146.10M | -110.60M | -200.40M | -326.40M | -196.00M |
Nelco Limited Technical Analysis
Negative
933.75
Price Trends
914.41
Negative
896.75
Negative
772.89
Negative
Market Momentum
-58.16
Positive
21.95
Positive
4.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NELCO, the sentiment is Negative. The current price of 933.75 is above the 20-day moving average (MA) of 846.77, above the 50-day MA of 914.41, and above the 200-day MA of 772.89, indicating a bearish trend. The MACD of -58.16 indicates Positive momentum. The RSI at 21.95 is Positive, neither overbought nor oversold. The STOCH value of 4.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NELCO.
Nelco Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹142.28B | 75.25 | ― | 0.16% | 4.02% | 16.28% | |
64 Neutral | ₹374.23B | 42.62 | ― | 0.08% | 101.01% | 2852.77% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹447.13B | 57.00 | ― | 0.65% | 63.47% | ― | |
47 Neutral | ₹72.08B | -8.86 | ― | 0.61% | -70.27% | -100.11% | |
46 Neutral | ₹15.97B | 402.67 | ― | 0.14% | 6.15% | -7.36% | |
41 Neutral | ₹208.94B | 79.35 | ― | ― | -41.28% | ― |
* General Sector Average
IN:NELCO
Nelco Limited
699.85
-149.01
-17.55%
IN:ASTRAMICRO
Astra Microwave Products Ltd.
1,498.60
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IN:HFCL
HFCL Limited
244.50
167.76
218.62%
IN:ITI
ITI Limited
217.45
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-34.75%
IN:STLTECH
Sterlite Technologies Limited
869.80
750.30
627.87%
IN:TEJASNET
Tejas Networks Ltd.
404.60
-139.65
-25.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.