Nelcast Limited (NELCAST) AI Stock Analysis

• Market Cap: ₹10.64B
• Dividend Yield: 0.48%
• Average Volume (3M): 13.82K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 1.86
• 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: 68 Neutral
• Price Target: ₹126.00 ▲(18.92% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is driven primarily by solid underlying financial performance (improving gross margins and a stable balance sheet) tempered by cash flow inconsistency and some net margin pressure. Technicals are mixed with the stock below key long-term averages, while valuation appears reasonable but with a low dividend yield.

Positive Factors

Improving gross profit margins

A sustained, multi-year rise in gross margins signals stronger cost control or better product mix (more value-added machined castings). That durable margin expansion supports operating profitability, resilience to input-cost swings, and capacity to reinvest in productivity over the next 2–6 months.

Prudent leverage and stable balance sheet

A reasonable debt-to-equity ratio and stable equity ratio indicate manageable financial leverage and a solid capital structure. This improves the company's ability to fund working capital, service obligations, and absorb demand volatility without immediate refinancing risk.

Improving operating cash flow and positive FCF in 2025

The recent material improvement in operating cash flow and a return to positive free cash flow reflect better conversion of earnings into cash. That enhances near-term financial flexibility to fund capex or working capital and reduces dependency on external financing.

Negative Factors

Volatile net profit margins

Fluctuating net margins indicate earnings are sensitive to cost pass-through, pricing, or overhead variability. That reduces predictability of bottom-line results and can constrain long-term free cash flow and returns even if gross margins improve.

Historically inconsistent free cash flow

Intermittent free cash flow over multiple years implies the company may face timing-driven funding pressures for capex, working capital, or debt repayment. This weakens sustained internal funding for strategic investments or steady shareholder returns.

End-market cyclicality (commercial vehicle exposure)

Heavy exposure to commercial-vehicle volumes and automotive cycles makes revenues and utilisation highly cyclical. Demand downturns can quickly reduce shipments and underutilise capacity, pressuring margins and cash generation for several quarters.

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

Financial statements indicate stable revenue and improving gross margins, supported by a reasonably leveraged balance sheet. However, net margin softness and historically inconsistent free cash flow reduce confidence in profitability and cash generation stability.

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	12.52B	12.40B	12.58B	9.21B	6.11B	5.67B
Gross Profit	5.79B	7.02B	1.63B	961.96M	665.15M	638.40M
EBITDA	1.11B	885.16M	880.99M	622.00M	477.31M	578.34M
Net Income	367.81M	372.92M	297.35M	142.25M	90.42M	360.05M
Balance Sheet
Total Assets	11.56B	11.64B	10.28B	9.63B	8.40B	7.79B
Cash, Cash Equivalents and Short-Term Investments	678.41M	782.96M	1.05B	613.95M	650.36M	479.99M
Total Debt	2.92B	2.94B	3.04B	2.80B	2.15B	2.25B
Total Liabilities	5.87B	6.09B	5.57B	5.19B	4.07B	3.56B
Stockholders Equity	5.66B	5.53B	4.68B	4.42B	4.30B	4.20B
Cash Flow
Free Cash Flow	119.06M	116.73M	605.24M	-542.65M	-903.96M	-349.23M
Operating Cash Flow	207.11M	1.05B	804.37M	-129.24M	825.92M	317.34M
Investing Cash Flow	-61.81M	-382.26M	-233.89M	-319.04M	-176.01M	-627.59M
Financing Cash Flow	-414.74M	-611.09M	-705.39M	23.91M	-507.84M	271.27M

Nelcast Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NELCAST, the sentiment is Positive. The current price of 105.95 is below the 20-day moving average (MA) of 116.81, below the 50-day MA of 108.32, and below the 200-day MA of 127.20, indicating a neutral trend. The MACD of 2.54 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 84.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NELCAST.

Nelcast Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NELCAST	68 Neutral	₹10.64B	14.22	―	0.48%	0.43%	-23.95%
ALICON	63 Neutral	₹11.21B	100.99	―	0.65%	-3.78%	-54.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TNPL	58 Neutral	₹9.43B	36.69	―	2.08%	4.65%	-127.24%
MANALIPETC	49 Neutral	₹7.91B	3.95	―	0.82%	-2.41%	178.19%
DECCANCE	48 Neutral	₹9.13B	-467.16	―	0.08%	-28.32%	93.44%
UNIENTER	46 Neutral	₹6.89B	-247.22	―	0.34%	―	―

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.