Nelcast Limited (NELCAST) AI Stock Analysis

• Market Cap: ₹8.46B
• Dividend Yield: 0.48%
• Average Volume (3M): 13.82K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.94
• 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): 0.55
• 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: 64 Neutral
• Price Target: ₹104.00 ▼(-1.84% Downside)

Nelcast Limited's overall stock score is driven primarily by its strong financial performance, characterized by stable revenue growth and improving profit margins. However, technical indicators suggest a bearish trend, and the valuation appears high, limiting the stock's attractiveness. The absence of earnings call insights and notable corporate events leaves these areas unaddressed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Nelcast's products and effective market strategies, supporting long-term business stability.

Balance Sheet Health

A stable balance sheet with manageable liabilities and prudent leverage enhances financial flexibility and resilience against economic fluctuations.

Cash Flow Improvement

Improved cash generation from operations strengthens Nelcast's ability to fund growth initiatives and manage financial obligations, ensuring long-term viability.

Negative Factors

Profitability Pressures

Fluctuating net profit margins suggest challenges in maintaining consistent profitability, which could impact long-term financial performance if not addressed.

Inconsistent Free Cash Flow

Variable free cash flow indicates challenges in capital expenditure management and operational efficiency, potentially affecting long-term financial health.

Earnings Volatility

Negative EPS growth highlights earnings volatility, which can undermine investor confidence and affect the company's ability to reinvest in growth opportunities.

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

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: 105.95
• 50DMA: Negative
• 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 above the 20-day moving average (MA) of 102.72, below the 50-day MA of 107.02, and below the 200-day MA of 124.52, indicating a bearish trend. The MACD of -3.15 indicates Positive momentum. The RSI at 33.50 is Neutral, neither overbought nor oversold. The STOCH value of 10.62 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	65 Neutral	₹12.40B	37.05	―	0.65%	-3.78%	-54.67%
NELCAST	64 Neutral	₹8.46B	23.00	―	0.48%	0.43%	-23.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	55 Neutral	₹9.68B	-48.20	―	2.08%	4.65%	-127.24%
MANALIPETC	49 Neutral	₹10.22B	21.03	―	0.82%	-2.41%	178.19%
UNIENTER	49 Neutral	₹9.80B	51.58	―	0.34%	―	―
DECCANCE	48 Neutral	₹9.53B	28.73	―	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.

Nelcast Limited Releases Unaudited Financial Results for September 2025

Nelcast Limited has published its unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2025. The announcement, made in compliance with SEBI regulations, highlights the company’s financial performance, which is crucial for stakeholders to assess its operational efficiency and market position. The publication in prominent newspapers like Financial Express and Andhra Prabha ensures transparency and accessibility of information to investors and the public.