Nelco Limited (NELCO) AI Stock Analysis

• Market Cap: ₹19.91B
• Dividend Yield: 0.11%
• Average Volume (3M): 13.81K
• Price to Earnings (P/E): 464.5
• Beta (1Y): 1.90
• Revenue Growth: -7.50%
• EPS Growth: -79.50%
• Country: IN
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.71
• Shares Outstanding: 22,818,400
• 10 Day Avg. Volume: 6,725
• 30 Day Avg. Volume: 13,809
• 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: ₹940.00
• Price Target Upside: 7.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ₹940.00 ▲(7.75% Upside)

Nelco Limited's stock score is primarily influenced by its stable but challenged financial performance and moderate technical indicators. The high P/E ratio suggests overvaluation, which is a significant concern. Improvements in financial management and cash flow efficiency could enhance the stock's attractiveness.

Nelco Limited Business Overview & Revenue Model

Company Description

Nelco Limited (NELCO) is a leading provider of technology solutions, primarily operating in the telecommunications and information technology sectors. The company specializes in offering a range of products and services including network infrastructure, data management solutions, and cloud services. With a strong focus on innovation, NELCO serves various industries such as telecommunications, government, and enterprise clients, helping them enhance their operational efficiency and digital transformation initiatives.

How the Company Makes Money

NELCO generates revenue through multiple streams, primarily from the sale of technology products and services. This includes hardware sales, software licensing, and cloud-based services which are billed on a subscription basis. Additionally, NELCO earns income from consulting and implementation services that assist clients in deploying and managing their technology solutions. The company also collaborates with strategic partners for joint ventures and projects, which contribute to its revenue through shared service agreements and collaborative sales efforts. Furthermore, NELCO may benefit from government contracts or grants that support specific technology initiatives, further bolstering its financial performance.

Nelco Limited Financial Statement Overview

Summary

Nelco Limited demonstrates a stable but challenged financial position. Strong gross margins are offset by pressured net margins. The balance sheet shows a need to manage debt levels more effectively. Cash flow patterns suggest potential operational inefficiencies. Strategic improvements in leverage and cash flow efficiency are necessary to enhance financial performance.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.06B	3.05B	3.20B	3.13B	2.60B	2.26B
Gross Profit	2.29B	2.21B	2.32B	2.63B	1.56B	1.41B
EBITDA	435.00M	477.70M	621.30M	672.00M	553.20M	477.10M
Net Income	67.70M	95.30M	236.70M	198.50M	160.80M	123.60M
Balance Sheet
Total Assets	0.00	2.87B	2.82B	2.62B	2.63B	2.46B
Cash, Cash Equivalents and Short-Term Investments	138.50M	180.20M	217.90M	161.60M	156.50M	91.60M
Total Debt	0.00	525.10M	568.70M	631.00M	814.80M	896.20M
Total Liabilities	-1.28B	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: Neutral
• Last Price: 872.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 872.4 is below the 20-day moving average (MA) of 875.85, above the 50-day MA of 852.20, and below the 200-day MA of 921.16, indicating a neutral trend. The MACD of 6.12 indicates Positive momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 33.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NELCO.

Nelco Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KERNEX	65 Neutral	₹21.92B	40.53	―	―	358.71%	―
NELCO	65 Neutral	₹19.91B	464.49	―	0.11%	-7.50%	-79.50%
SASKEN	63 Neutral	₹20.85B	50.05	―	2.77%	62.55%	-41.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NIITLTD	56 Neutral	₹14.32B	33.32	―	0.94%	11.08%	-3.08%
RAMCOSYS	54 Neutral	₹21.91B	―	―	―	17.66%	93.82%

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.