Nelcast Limited (NELCAST) AI Stock Analysis

• Market Cap: ₹9.53B
• Dividend Yield: 0.48%
• Average Volume (3M): 13.82K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 2.23
• Revenue Growth: 0.43%
• EPS Growth: -23.95%
• Country: IN
• Employees: 1,210
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.83
• Shares Outstanding: 87,001,200
• 10 Day Avg. Volume: 25,194
• 30 Day Avg. Volume: 13,824
• PEG Ratio: -0.65
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 65.55
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹116.00 ▲(9.49% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily driven by solid financial performance (improving gross margins, stable revenue and a healthy balance sheet), partially offset by weaker cash flow consistency. Technical indicators are mixed with negative MACD and price below long-term averages, and valuation support is moderate with a low dividend yield.

Positive Factors

Stable revenue growth trend

Sustained revenue growth since 2022 indicates durable demand for Nelcast's ferrous castings from OEMs and tier suppliers. A stable top line supports capacity utilization, long-term customer relationships and predictable production planning, reducing revenue volatility risk over months.

Improving gross profit margins

Rising gross margins signal effective cost management and operational improvements in foundry and machining processes. Sustained margin expansion enhances resilience to raw material and energy swings, provides internal funds for reinvestment, and supports structural profitability over cycles.

Prudent balance sheet and leverage

A reasonable debt profile and stable equity ratio show conservative financial policy, giving Nelcast flexibility to fund capex or withstand cyclical downturns in commercial vehicle demand. Strong capital structure supports investment and long-term operational continuity.

Negative Factors

Inconsistent free cash flow generation

Irregular free cash flow limits the company’s ability to consistently fund capex, pay dividends, or deleverage without external financing. Even with 2025 improvement, past volatility suggests cash conversion remains a structural risk for sustaining investments and payouts.

Net profit margin volatility

Fluctuating net margins and a recent dip point to pressure on bottom-line conversion despite gross margin gains. This indicates potential constraints in passing through costs or rising overheads, creating uncertainty in sustainable earnings and returns over the medium term.

Earnings per share contraction

A near-24% EPS decline signals earnings volatility and potential one-off or structural headwinds affecting profitability. Persistent EPS contraction can undermine capital allocation flexibility and investor confidence, and may reflect operational or pricing pressures needing remediation.

Nelcast Limited Business Overview & Revenue Model

Company Description

Nelcast Limited manufactures and sells ductile and grey iron castings in India and internationally. The company provides commercial components, including bogie suspension brackets, conventional suspension/engine/steering/cab mounting brackets, rear and forward differential carriers, flanged and plain half products, wheel hubs, bearing caps, brake drums, and brake disc rotors; and tractor/farm components, such as hydraulic lift covers, and front engine support, as well as axle, four-wheel drive front axle, transmission clutch, and center/differential housing products. It also offers off highway/army components that include transmission and differential cases, converter and axle housing, and planetary carriers; railway products comprising brake discs and base plates for ballastless track systems; SUV/car components consisting of case bodies and caps, and drive heads; and powertrain components that include gearbox and flywheel housing, and exhaust manifold products. The company serves automotive, tractor, construction, mining, railways, and general engineering sectors. Nelcast Limited was incorporated in 1982 and is based in Chennai, India.

How the Company Makes Money

Nelcast Limited generates revenue primarily through the sale of its cast iron products, which are essential components in the automotive and industrial sectors. The company operates on a business-to-business (B2B) model, supplying parts to original equipment manufacturers (OEMs) and other industrial clients. Key revenue streams include bulk orders for castings, machining services, and long-term contracts with major clients in the automotive sector. Additionally, NELCAST benefits from strategic partnerships with automotive manufacturers and industry players, enhancing its market reach and stability. The company also invests in research and development to innovate its product offerings, which can lead to increased sales and improved profit margins.

Nelcast Limited Financial Statement Overview

Summary

Solid fundamentals supported by improving gross margins and stable revenue trends, plus a reasonable leverage profile. The score is held back by fluctuating net margins and historically inconsistent free cash flow, despite improved operating cash flow in 2025.

Income Statement

Nelcast Limited shows a consistent upward trend in gross profit margin, increasing substantially from 2022 to 2025, indicating effective cost management. However, net profit margins have fluctuated, with a slight decrease in 2025 compared to 2024, highlighting some profitability pressures. Revenue growth has been stable, with a significant jump in 2022, which has been maintained over the subsequent years. The EBIT and EBITDA margins have shown resilience, maintaining healthy levels, though with modest declines in recent years.

Balance Sheet

The company's debt-to-equity ratio has remained reasonable, suggesting prudent leverage management. Return on equity shows a positive trend, reflecting efficient use of equity capital to generate profits. The equity ratio remains stable, indicating a solid capital structure with a good proportion of equity financing. Overall, the balance sheet reflects a stable financial position, with manageable liabilities relative to assets and equity.

Cash Flow

Operating cash flow has improved significantly in 2025 after previous fluctuations, indicating enhanced cash generation from core operations. Free cash flow, although positive in 2025, has been inconsistent in prior years, reflecting variable capital expenditures and operational efficiency. The operating cash flow to net income ratio suggests improved cash conversion efficiency, though free cash flow relative to net income highlights ongoing challenges in maintaining consistent free cash flow.

Breakdown	TTM	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	12.83B	12.40B	12.58B	9.21B	6.11B	5.67B
Gross Profit	6.57B	7.02B	4.40B	961.96M	665.15M	638.40M
EBITDA	1.17B	885.16M	1.17B	622.00M	477.31M	578.34M
Net Income	418.42M	372.92M	544.11M	142.25M	90.42M	360.05M
Balance Sheet
Total Assets	0.00	11.64B	11.32B	9.63B	8.40B	7.79B
Cash, Cash Equivalents and Short-Term Investments	782.37M	782.96M	848.91M	613.95M	650.36M	479.99M
Total Debt	0.00	2.94B	3.29B	2.80B	2.15B	2.25B
Total Liabilities	-5.56B	6.09B	6.10B	5.19B	4.07B	3.56B
Stockholders Equity	5.56B	5.53B	5.19B	4.42B	4.30B	4.20B
Cash Flow
Free Cash Flow	0.00	116.73M	-444.20M	-542.65M	-903.96M	-349.23M
Operating Cash Flow	0.00	1.05B	191.49M	-129.24M	825.92M	317.34M
Investing Cash Flow	0.00	-382.26M	-305.44M	-319.04M	-176.01M	-627.59M
Financing Cash Flow	0.00	-611.09M	-377.83M	23.91M	-507.84M	271.27M

Nelcast Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NELCAST, the sentiment is Negative. The current price of 105.95 is below the 20-day moving average (MA) of 119.08, below the 50-day MA of 106.51, and below the 200-day MA of 127.68, indicating a neutral trend. The MACD of 2.20 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 13.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NELCAST.

Nelcast Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALICON	63 Neutral	₹12.36B	34.02	―	0.65%	-3.78%	-54.67%
NELCAST	62 Neutral	₹9.53B	21.22	―	0.48%	0.43%	-23.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	58 Neutral	₹9.21B	32.02	―	2.08%	4.65%	-127.24%
MANALIPETC	49 Neutral	₹9.24B	8.54	―	0.82%	-2.41%	178.19%
UNIENTER	49 Neutral	₹7.34B	37.69	―	0.34%	―	―
DECCANCE	48 Neutral	₹10.08B	32.65	―	0.08%	-28.32%	93.44%

Nelcast Limited Corporate Events

Nelcast Announces Trading Window Closure Ahead of Quarterly Results

Nelcast Limited has announced that it will close its trading window for designated persons, their immediate relatives and other connected persons in compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015 and the company’s internal code of conduct. The window will be shut from 1 January 2026 until 48 hours after the declaration of the company’s financial results for the quarter and nine months ended 31 December 2025, a routine governance measure intended to prevent insider trading ahead of the results and reinforce regulatory compliance for market participants and insiders.