Nelco Limited (IN:NELCO)
:NELCO
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Nelco Limited
(NELCO)
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Rating:49Neutral
Price Target:
₹712.00
▼(-2.41% Downside)
Action:ReiteratedDate:04/22/26
The score is held back primarily by weakening fundamentals—sharp margin compression and a FY2026 setback in cash flows with negative free cash flow—despite a reasonably de-risked balance sheet. Technicals are supportive with strong recent momentum, but valuation is a major headwind given the extremely high P/E and very low dividend yield.
Positive Factors
Recurring service-led revenue
Nelco's primary revenue model is recurring fees for VSAT and managed network services, producing predictable, sticky cash flows and high customer retention. Over the medium term this supports stable revenue visibility, easier capacity planning and lower churn sensitivity than one-off project models.
Negative Factors
Severe margin compression
A steep decline in net margins over two years indicates persistent pricing pressure or rising operating costs that erode profitability. Sustained low margins constrain reinvestment, reduce returns to shareholders, and limit the firm's ability to absorb revenue shocks given the fixed-cost nature of network operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring service-led revenue
Nelco's primary revenue model is recurring fees for VSAT and managed network services, producing predictable, sticky cash flows and high customer retention. Over the medium term this supports stable revenue visibility, easier capacity planning and lower churn sensitivity than one-off project models.
Read all positive factors
Nelco Limited (NELCO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹15.20B
Dividend Yield0.13%
Average Volume (3M)13.81K
Price to Earnings (P/E)263.6
Beta (1Y)1.85
Revenue Growth0.57%
EPS Growth-65.09%
CountryIN
Employees94
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.48
Shares Outstanding22,818,400
10 Day Avg. Volume6,725
30 Day Avg. Volume13,809
Financial Highlights & Ratios
PEG Ratio-5.34
Price to Book (P/B)8.99
Price to Sales (P/S)3.78
P/FCF Ratio-102.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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, ma...
How the Company Makes Money
NELCO makes money primarily by providing satellite-based connectivity and managed communication/network services to business and institutional customers. Its revenue model is largely service-led and typically includes (1) recurring service fees fo...
Nelco Limited Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
60
Neutral
Cash Flow
35
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.97B | 3.07B | 3.05B | 3.20B | 3.13B | 2.60B |
| Gross Profit | 2.27B | 575.00M | 2.21B | 2.32B | 2.63B | 1.56B |
| EBITDA | 402.20M | 285.60M | 477.70M | 621.30M | 672.00M | 553.20M |
| Net Income | 42.90M | 33.20M | 95.30M | 236.70M | 198.50M | 160.80M |
Balance Sheet | ||||||
| Total Assets | 3.09B | 3.47B | 2.87B | 2.82B | 2.62B | 2.63B |
| Cash, Cash Equivalents and Short-Term Investments | 303.10M | 202.50M | 180.20M | 217.90M | 161.60M | 156.50M |
| Total Debt | 719.20M | 728.40M | 525.10M | 568.70M | 631.00M | 814.80M |
| Total Liabilities | 1.81B | 2.19B | 1.60B | 1.58B | 1.58B | 1.74B |
| Stockholders Equity | 1.29B | 1.29B | 1.28B | 1.24B | 1.05B | 890.50M |
Cash Flow | ||||||
| Free Cash Flow | 20.60M | -113.10M | 30.90M | 256.60M | 329.90M | 314.50M |
| Operating Cash Flow | 111.30M | 119.70M | 196.60M | 419.70M | 580.80M | 494.30M |
| Investing Cash Flow | -85.80M | -210.40M | -165.40M | -192.20M | -249.30M | -160.80M |
| Financing Cash Flow | 130.30M | 146.10M | -110.60M | -200.40M | -326.40M | -196.00M |
Nelco Limited Technical Analysis
Positive
729.55
Price Trends
615.93
Positive
679.14
Positive
777.22
Negative
Market Momentum
15.44
Negative
66.65
Neutral
96.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NELCO, the sentiment is Positive. The current price of 729.55 is above the 20-day moving average (MA) of 596.89, above the 50-day MA of 615.93, and below the 200-day MA of 777.22, indicating a neutral trend. The MACD of 15.44 indicates Negative momentum. The RSI at 66.65 is Neutral, neither overbought nor oversold. The STOCH value of 96.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NELCO.
Nelco Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | ₹21.80B | 84.78 | ― | ― | 123.77% | 946.70% | |
65 Neutral | ₹19.26B | 74.37 | ― | 1.83% | 81.12% | -32.94% | |
64 Neutral | ₹18.89B | 1.71 | ― | ― | 29.92% | 39.48% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | ₹9.35B | 78.58 | ― | 1.07% | 8.99% | -48.45% | |
53 Neutral | ₹15.67B | 163.07 | ― | ― | 18.25% | ― | |
49 Neutral | ₹15.20B | 263.59 | ― | 0.13% | 0.57% | -65.09% |
* Technology Sector Average
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Nelco Limited Corporate Events
Nelco Faces Rs. 14.14 Crore GST Demand, Plans to Appeal Tax Order
Mar 11, 2026
Nelco Limited has disclosed that it received an order on 10 March 2026 from the Commissioner of CGST and Central Excise confirming a demand of Rs. 1,414 lakhs, including penalty, for GST liability under the reverse charge mechanism for the period ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.