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Nelco Limited
(NELCO)
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Rating:48Neutral
Price Target:
₹932.00
▲(27.75% Upside)
Action:Reiterated
Date:06/20/26
The score is held back primarily by weakening profitability and a sharp deterioration in cash flow (negative FY2026 free cash flow), alongside an extremely high P/E. Technicals are supportive due to strong trend strength, but overbought readings add near-term risk.
Positive Factors
Recurring revenue model
Nelco’s core business is recurring VSAT and managed-network services sold to enterprises and institutions that need reliable links. That contractually-backed recurring revenue mix supports predictable cash inflows, higher customer retention, and structural resilience versus one-off product cycles.
Negative Factors
Sharp margin deterioration
Margins have compressed dramatically over a short period, signaling persistent pricing pressure, rising costs, or operational inefficiencies. Lower margins erode the company’s ability to reinvest, reduce returns on capital, and make earnings more sensitive to revenue shocks, materially weakening long-term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
Nelco’s core business is recurring VSAT and managed-network services sold to enterprises and institutions that need reliable links. That contractually-backed recurring revenue mix supports predictable cash inflows, higher customer retention, and structural resilience versus one-off product cycles.
Read all positive factors
Nelco Limited (NELCO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹20.32B
Dividend Yield0.13%
Average Volume (3M)13.81K
Price to Earnings (P/E)609.8
Beta (1Y)2.08
Revenue Growth0.57%
EPS Growth-65.15%
CountryIN
Employees94
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)1.46
Shares Outstanding22,818,400
10 Day Avg. Volume6,725
30 Day Avg. Volume13,809
Financial Highlights & Ratios
PEG Ratio-5.33
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, an Indian enterprise founded in 1940 and based in Navi Mumbai, operates as a subsidiary of The Tata Power Company Limited. The company specializes in providing advanced Very Small Aperture Terminal (VSAT) communication services and ...
How the Company Makes Money
NELCO makes money mainly by selling connectivity and network services to businesses and institutions. Its core revenue typically comes from: (1) VSAT/satellite connectivity services, where customers pay recurring charges for bandwidth and ongoing ...
Nelco Limited Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
60
Neutral
Cash Flow
35
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.07B | 3.05B | 3.20B | 3.13B | 2.60B |
| Gross Profit | 415.80M | 2.21B | 2.32B | 2.63B | 1.56B |
| EBITDA | 294.10M | 477.70M | 621.30M | 672.00M | 553.20M |
| Net Income | 33.20M | 95.30M | 236.70M | 198.50M | 160.80M |
Balance Sheet | |||||
| Total Assets | 3.47B | 2.87B | 2.82B | 2.62B | 2.63B |
| Cash, Cash Equivalents and Short-Term Investments | 202.50M | 180.20M | 217.90M | 161.60M | 156.50M |
| Total Debt | 728.40M | 525.10M | 568.70M | 631.00M | 814.80M |
| Total Liabilities | 2.19B | 1.60B | 1.58B | 1.58B | 1.74B |
| Stockholders Equity | 1.29B | 1.28B | 1.24B | 1.05B | 890.50M |
Cash Flow | |||||
| Free Cash Flow | -113.10M | 30.90M | 256.60M | 329.90M | 314.50M |
| Operating Cash Flow | 119.70M | 196.60M | 419.70M | 580.80M | 494.30M |
| Investing Cash Flow | -210.40M | -165.40M | -192.20M | -249.30M | -160.80M |
| Financing Cash Flow | 146.10M | -110.60M | -200.40M | -326.40M | -196.00M |
Nelco Limited Technical Analysis
Positive
729.55
Price Trends
761.64
Positive
691.12
Positive
740.02
Positive
Market Momentum
46.57
Positive
60.54
Neutral
27.91
Neutral
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 below the 20-day moving average (MA) of 869.00, below the 50-day MA of 761.64, and below the 200-day MA of 740.02, indicating a bullish trend. The MACD of 46.57 indicates Positive momentum. The RSI at 60.54 is Neutral, neither overbought nor oversold. The STOCH value of 27.91 is Neutral, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹171.26B | 88.76 | ― | 0.24% | 10.62% | 25.69% | |
59 Neutral | ₹332.75B | 102.00 | ― | 0.15% | 21.77% | 72.87% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹278.43B | 475.53 | ― | ― | -3.90% | ― | |
52 Neutral | ₹100.36B | -11.07 | ― | 0.55% | -87.10% | -296.63% | |
48 Neutral | ₹20.32B | 609.83 | ― | 0.13% | 0.57% | -65.15% | |
46 Neutral | ₹279.04B | 120.44 | ― | ― | -39.62% | ― |
* General Sector Average
IN:NELCO
Nelco Limited
890.65
-13.47
-1.49%
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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.