Nelco Limited (NELCO) AI Stock Analysis

• Market Cap: ₹19.59B
• Dividend Yield: 0.12%
• Average Volume (3M): 12.91K
• Price to Earnings (P/E): 289.6
• Beta (1Y): 1.94
• Revenue Growth: -3.17%
• EPS Growth: -69.93%
• Country: IN
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.79
• Shares Outstanding: 22,818,400
• 10 Day Avg. Volume: 26,501
• 30 Day Avg. Volume: 12,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹889.00
• Price Target Upside: 3.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ₹889.00 ▲(3.54% Upside)

Nelco Limited's overall stock score is primarily influenced by its financial performance and valuation. The company's financials show stability but highlight areas needing improvement, such as leverage and cash flow efficiency. The technical analysis suggests mixed signals with potential resistance. The high P/E ratio indicates overvaluation concerns, which significantly impacts the overall score.

Nelco Limited Business Overview & Revenue Model

Company Description

Nelco Limited provides systems and solutions in the areas of very small aperture terminals (VSAT) connectivity, and integrated security and surveillance in India. It offers VSAT satellite communication services for renewable energy, enterprise, maritime, oil, energy, and gas sectors, as well as to bank ATM and branches. The company is also involved in the design, supply, installation, and maintenance of integrated security and surveillance solutions for application in industrial plants, power stations, broadcasting stations, telecommunications stations, airports, railways, seaports, and borders. In addition, it offers end to end networking solutions; and engages in the sale/rental of VSATs and maintenance of private hubs and hybrid networks. The company serves businesses and government institutions. The company was incorporated in 1940 and is based in Navi Mumbai, India. Nelco Limited operates as a subsidiary of The Tata Power Company Limited.

How the Company Makes Money

Nelco Limited generates revenue primarily through its satellite communication services, offering VSAT connectivity solutions to various industries such as maritime, oil and gas, and enterprise sectors. By providing managed network services, Nelco ensures reliable and secure data communication for businesses. Additionally, the company earns revenue from its integrated security and surveillance solutions, which help organizations enhance their operational efficiencies and safety. Key partnerships with satellite operators and technology providers enable Nelco to deliver advanced communication solutions, contributing significantly to its earnings.

Nelco Limited Financial Statement Overview

Summary

Nelco Limited demonstrates a stable but challenged financial position. Strong gross margins contrast with pressured net margins, indicating cost management issues. The balance sheet suggests a need to manage rising debt levels more effectively. Cash flow inefficiencies point to operational challenges, though the company remains fundamentally sound. Strategic improvements in leverage and cash flow efficiency are necessary.

Income Statement

Nelco Limited's income statement shows a mixed performance. The gross profit margin has been consistently strong, indicating effective cost management. However, the net profit margin has decreased significantly in the last reported year, suggesting challenges in managing non-operational expenses or increased tax burden. Revenue growth has been uneven, with fluctuations indicating market challenges or competitive pressures. Overall, profitability remains decent but with room for improvement in net margins.

Balance Sheet

The balance sheet presents a somewhat leveraged position, with a rising debt-to-equity ratio over the years. Despite this, the company maintains a healthy equity ratio, demonstrating good capital management. Return on equity has shown a declining trend, which could be a concern for investors seeking high returns. The company needs to address its leverage to improve financial stability and potential returns.

Cash Flow

The cash flow statement reflects a decline in operating cash flow over recent years, which could impact the company's ability to fund operations and growth internally. Although free cash flow has been positive, its growth rate has been inconsistent. The ratio of operating cash flow to net income indicates that not all earnings are translating into cash flow, suggesting potential inefficiencies or working capital challenges.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.05B	3.05B	3.20B	2.60B	3.13B	2.26B
Gross Profit	2.00B	2.78B	2.32B	1.56B	2.63B	1.41B
EBITDA	423.82M	477.70M	621.30M	553.20M	672.00M	477.10M
Net Income	95.30M	95.30M	236.70M	160.80M	198.50M	123.60M
Balance Sheet
Total Assets	2.87B	2.87B	2.82B	2.63B	2.62B	2.46B
Cash, Cash Equivalents and Short-Term Investments	180.20M	180.20M	217.90M	156.50M	200.90M	91.60M
Total Debt	525.10M	525.10M	568.70M	814.80M	631.00M	896.20M
Total Liabilities	1.60B	1.60B	1.58B	1.74B	1.58B	1.70B
Stockholders Equity	1.28B	1.28B	1.24B	890.50M	1.05B	757.80M
Cash Flow
Free Cash Flow	0.00	30.90M	256.60M	314.50M	329.90M	446.60M
Operating Cash Flow	0.00	196.60M	419.70M	494.30M	580.80M	539.60M
Investing Cash Flow	0.00	-165.40M	-192.20M	-160.80M	-249.30M	-75.60M
Financing Cash Flow	0.00	-110.60M	-200.40M	-196.00M	-326.40M	-470.30M

Nelco Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 858.60
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 858.6 is above the 20-day moving average (MA) of 846.48, above the 50-day MA of 849.19, and below the 200-day MA of 955.73, indicating a neutral trend. The MACD of 8.92 indicates Negative momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 36.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NELCO.

Nelco Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SASKEN	63 Neutral	₹21.08B	50.60	6.38%	2.74%	62.55%	-41.78%
KERNEX	60 Neutral	₹18.19B	33.64	31.81%	―	358.71%	―
NELCO	57 Neutral	₹19.59B	289.57	―	0.12%	-3.17%	-69.93%
NIITLTD	56 Neutral	₹14.38B	33.45	4.28%	0.95%	11.08%	-3.08%
RAMCOSYS	54 Neutral	₹18.50B	-131.70	-10.85%	―	17.66%	93.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Nelco Limited Corporate Events

Nelco Limited Confirms Securities Dematerialization Compliance

Nelco Limited has submitted a certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, confirming the dematerialization of securities for the quarter ending June 30, 2025. This submission ensures compliance with regulatory requirements and maintains transparency with the stock exchanges where Nelco’s shares are listed, potentially reinforcing stakeholder confidence in the company’s adherence to financial regulations.