Nelco Limited (NELCO) AI Stock Analysis

• Market Cap: ₹19.15B
• Dividend Yield: 0.12%
• Average Volume (3M): 9.97K
• Price to Earnings (P/E): 283.1
• Beta (1Y): 1.85
• Revenue Growth: -3.17%
• EPS Growth: -69.93%
• Country: IN
• Employees: 94
• Sector: Technology
• Sector Strength: 97
• Industry: Communication Equipment
• EPS (TTM): 0.79
• Shares Outstanding: 22,818,400
• 10 Day Avg. Volume: 9,061
• 30 Day Avg. Volume: 9,975
• PEG Ratio: -3.58
• Price to Book (P/B): 15.92
• Price to Sales (P/S): 6.68
• P/FCF Ratio: 658.92
• 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: ₹854.00
• Price Target Upside: -0.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ₹854.00 ▼(-0.14% Downside)

Nelco Limited's stock score is primarily impacted by challenging financial performance and technical indicators showing bearish momentum. The high P/E ratio suggests overvaluation. Although the company is fundamentally sound, strategic improvements are required to enhance financial stability and market position.

Nelco Limited Business Overview & Revenue Model

Company Description

Nelco Limited (NELCO) is a leading provider of satellite communication services in India. The company operates in sectors such as enterprise connectivity, satellite communication (Satcom), and managed services. Nelco offers a range of products and services including Very Small Aperture Terminal (VSAT) connectivity, managed network services, and integrated security and surveillance solutions, catering to diverse industries like banking, oil and gas, and maritime.

How the Company Makes Money

Nelco Limited generates revenue primarily through its satellite communication services, offering VSAT connectivity solutions to various industries such as maritime, oil and gas, and enterprise sectors. By providing managed network services, Nelco ensures reliable and secure data communication for businesses. Additionally, the company earns revenue from its integrated security and surveillance solutions, which help organizations enhance their operational efficiencies and safety. Key partnerships with satellite operators and technology providers enable Nelco to deliver advanced communication solutions, contributing significantly to its earnings.

Nelco Limited Financial Statement Overview

Summary

Nelco Limited demonstrates a stable but challenged financial position. Strong gross margins contrast with pressured net margins, indicating cost management issues. The balance sheet suggests a need to manage rising debt levels more effectively. Cash flow inefficiencies point to operational challenges, though the company remains fundamentally sound. Strategic improvements in leverage and cash flow efficiency are necessary.

Income Statement

Nelco Limited's income statement shows a mixed performance. The gross profit margin has been consistently strong, indicating effective cost management. However, the net profit margin has decreased significantly in the last reported year, suggesting challenges in managing non-operational expenses or increased tax burden. Revenue growth has been uneven, with fluctuations indicating market challenges or competitive pressures. Overall, profitability remains decent but with room for improvement in net margins.

Balance Sheet

The balance sheet presents a somewhat leveraged position, with a rising debt-to-equity ratio over the years. Despite this, the company maintains a healthy equity ratio, demonstrating good capital management. Return on equity has shown a declining trend, which could be a concern for investors seeking high returns. The company needs to address its leverage to improve financial stability and potential returns.

Cash Flow

The cash flow statement reflects a decline in operating cash flow over recent years, which could impact the company's ability to fund operations and growth internally. Although free cash flow has been positive, its growth rate has been inconsistent. The ratio of operating cash flow to net income indicates that not all earnings are translating into cash flow, suggesting potential inefficiencies or working capital challenges.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.05B	3.05B	3.20B	3.13B	2.60B	2.26B
Gross Profit	2.00B	2.78B	2.32B	2.63B	1.56B	1.41B
EBITDA	423.82M	477.70M	621.30M	672.00M	553.20M	477.10M
Net Income	95.30M	95.30M	236.70M	198.50M	160.80M	123.60M
Balance Sheet
Total Assets	2.87B	2.87B	2.82B	2.62B	2.63B	2.46B
Cash, Cash Equivalents and Short-Term Investments	180.20M	180.20M	217.90M	200.90M	156.50M	91.60M
Total Debt	525.10M	525.10M	568.70M	631.00M	814.80M	896.20M
Total Liabilities	1.60B	1.60B	1.58B	1.58B	1.74B	1.70B
Stockholders Equity	1.28B	1.28B	1.24B	1.05B	890.50M	757.80M
Cash Flow
Free Cash Flow	0.00	30.90M	256.60M	329.90M	314.50M	446.60M
Operating Cash Flow	0.00	196.60M	419.70M	580.80M	494.30M	539.60M
Investing Cash Flow	0.00	-165.40M	-192.20M	-249.30M	-160.80M	-75.60M
Financing Cash Flow	0.00	-110.60M	-200.40M	-326.40M	-196.00M	-470.30M

Nelco Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 855.20
• 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:NELCO, the sentiment is Negative. The current price of 855.2 is below the 20-day moving average (MA) of 861.21, below the 50-day MA of 945.88, and below the 200-day MA of 977.40, indicating a bearish trend. The MACD of -21.63 indicates Negative momentum. The RSI at 43.34 is Neutral, neither overbought nor oversold. The STOCH value of 32.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NELCO.

Nelco Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SASKEN	67 Neutral	₹22.46B	44.53		2.53%	35.55%	-36.31%
Sector *	63 Neutral	€2.32B	20.54	4.63%	2.75%	5.30%	-63.21%
KERNEX	60 Neutral	₹19.05B	38.96		―	868.33%	―
NIITLTD	54 Neutral	₹15.20B	35.40		1.07%	11.08%	-3.05%
RAMCOSYS	54 Neutral	₹14.92B	―		―	17.66%	93.82%
NELCO	48 Neutral	₹19.15B	283.09		0.12%	-3.17%	-69.93%

Nelco Limited Corporate Events

Nelco Limited Confirms Securities Dematerialization Compliance

Nelco Limited has submitted a certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, confirming the dematerialization of securities for the quarter ending June 30, 2025. This submission ensures compliance with regulatory requirements and maintains transparency with the stock exchanges where Nelco’s shares are listed, potentially reinforcing stakeholder confidence in the company’s adherence to financial regulations.