Nelcast Limited (NELCAST) AI Stock Analysis

• Market Cap: ₹10.29B
• Dividend Yield: 0.42%
• Average Volume (3M): 13.82K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.69
• Revenue Growth: 0.72%
• EPS Growth: -24.19%
• Country: IN
• Employees: 1,210
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 1.44
• 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): 0.61
• 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: ₹124.00
• Price Target Upside: 4.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ₹124.00 ▲(4.86% Upside)

Nelcast Limited's overall stock score is primarily influenced by its strong financial performance, which is offset by weak technical indicators and a high valuation. The lack of earnings call data and corporate events further limits the score. Continued focus on improving cash flow consistency and addressing technical weaknesses could enhance the stock's attractiveness.

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 manufacturing and sale of iron castings. The company's key revenue streams include supplying casting products to the automotive sector, such as components for commercial vehicles and passenger cars. Additionally, Nelcast serves the agriculture and industrial machinery sectors by providing castings for tractors and construction equipment. Strategic partnerships with major automotive and industrial manufacturers contribute significantly to its earnings, allowing the company to leverage long-term supply agreements and capitalize on the growing demand for high-quality cast iron products.

Nelcast Limited Financial Statement Overview

Summary

Nelcast Limited demonstrates strong financial performance with stable revenue growth and improving gross profit margins. The balance sheet reflects a healthy financial structure with stable leverage and equity ratios. However, cash flow management remains an area for improvement, despite recent advancements in operating cash flows.

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	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.83B	12.40B	12.58B	12.58B	9.21B	6.11B
Gross Profit	6.57B	7.02B	1.63B	4.40B	961.96M	665.15M
EBITDA	1.17B	885.16M	880.99M	1.17B	622.00M	477.31M
Net Income	418.42M	372.92M	297.35M	544.11M	142.25M	90.42M
Balance Sheet
Total Assets	0.00	11.64B	10.28B	11.32B	9.63B	8.40B
Cash, Cash Equivalents and Short-Term Investments	782.37M	782.96M	1.05B	848.91M	613.95M	650.36M
Total Debt	0.00	2.94B	3.04B	3.29B	2.80B	2.15B
Total Liabilities	-5.56B	6.09B	5.57B	6.10B	5.19B	4.07B
Stockholders Equity	5.56B	5.53B	4.68B	5.19B	4.42B	4.30B
Cash Flow
Free Cash Flow	0.00	116.73M	605.24M	-444.20M	-542.65M	-903.96M
Operating Cash Flow	0.00	1.05B	804.37M	191.49M	-129.24M	825.92M
Investing Cash Flow	0.00	-382.26M	-233.89M	-305.44M	-319.04M	-176.01M
Financing Cash Flow	0.00	-611.09M	-705.39M	-377.83M	23.91M	-507.84M

Nelcast Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.25
• 50DMA: Negative
• 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:NELCAST, the sentiment is Negative. The current price of 118.25 is below the 20-day moving average (MA) of 126.94, below the 50-day MA of 144.29, and below the 200-day MA of 122.92, indicating a bearish trend. The MACD of -8.45 indicates Negative momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 43.17 is Neutral, 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	66 Neutral	₹13.95B	38.25	―	0.64%	3.22%	-49.10%
DECCANCE	64 Neutral	₹14.64B	72.96	―	0.06%	-35.17%	-22.63%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NELCAST	59 Neutral	₹10.29B	24.59	―	0.42%	0.72%	-24.19%
MANALIPETC	54 Neutral	₹12.53B	40.91	―	0.69%	-8.24%	8.89%
TNPL	52 Neutral	₹10.56B	310.83	―	1.96%	-0.66%	-125.23%

Nelcast Limited Corporate Events

Nelcast Limited Releases Conference Call Transcript

Nelcast Limited, a company listed on both BSE and NSE, has announced that it held a conference call with fund managers, analysts, and investors on August 1, 2025. The transcript of this call has been made available on the company’s website, reflecting Nelcast’s commitment to transparency and communication with its stakeholders.

Nelcast Limited Releases AGM Voting Results

Nelcast Limited, a company listed on both BSE and NSE, held its 43rd Annual General Meeting (AGM) on August 1, 2025, via video conferencing. The company has submitted the voting results and the consolidated Scrutinizer’s Report from the AGM in accordance with SEBI regulations, which are now available on their website.

Nelcast Limited Reports Q2 2025 Financial Results

Nelcast Limited has announced its unaudited standalone and consolidated financial results for the quarter ending June 30, 2025. The results, published in major newspapers, show a total income from operations of approximately Rs. 33,599.70 lakhs, with a net profit of Rs. 1,250.49 lakhs after tax and exceptional items. This financial disclosure is part of the company’s compliance with SEBI regulations, reflecting its ongoing transparency and accountability to stakeholders.