Nelco Limited (NELCO) AI Stock Analysis

• Market Cap: ₹14.25B
• Dividend Yield: 0.13%
• Average Volume (3M): 13.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: -7.50%
• EPS Growth: -79.50%
• Country: IN
• Employees: 94
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.52
• 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: 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: 57 Neutral
• Price Target: ₹631.00 ▼(-13.51% Downside)
• Action: Reiterated Date: 04/07/26
• Date: Action: Reiterated 04/07/26

Overall score reflects pressured fundamentals (weaker net margins, rising leverage, and declining operating cash flow) combined with weak technicals (below key moving averages and negative MACD). Valuation adds a modest additional drag due to a negative P/E and a very low dividend yield.

Positive Factors

Strong gross margins

Consistently strong gross margins imply durable unit economics in Nelco's service and equipment mix. This provides an ongoing buffer against top-line volatility, supports reinvestment into network operations and maintenance, and helps preserve operating profitability if SG&A is managed.

Negative Factors

Declining operating cash flow

Falling operating cash flow reduces Nelco's internal funding capacity for capex, deployments and working capital. Inconsistent free cash flow conversion means reported profits are not reliably turning into spendable cash, increasing reliance on external financing for growth investments.

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...

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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...

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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

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.97B	3.05B	3.20B	3.13B	2.60B	2.26B
Gross Profit	2.27B	2.21B	2.32B	2.63B	1.56B	1.41B
EBITDA	402.20M	477.70M	621.30M	672.00M	553.20M	477.10M
Net Income	42.90M	95.30M	236.70M	198.50M	160.80M	123.60M
Balance Sheet
Total Assets	3.09B	2.87B	2.82B	2.62B	2.63B	2.46B
Cash, Cash Equivalents and Short-Term Investments	303.10M	180.20M	217.90M	161.60M	156.50M	91.60M
Total Debt	719.20M	525.10M	568.70M	631.00M	814.80M	896.20M
Total Liabilities	1.81B	1.60B	1.58B	1.58B	1.74B	1.70B
Stockholders Equity	1.29B	1.28B	1.24B	1.05B	890.50M	757.80M
Cash Flow
Free Cash Flow	20.60M	30.90M	256.60M	329.90M	314.50M	446.60M
Operating Cash Flow	111.30M	196.60M	419.70M	580.80M	494.30M	539.60M
Investing Cash Flow	-85.80M	-165.40M	-192.20M	-249.30M	-160.80M	-75.60M
Financing Cash Flow	130.30M	-110.60M	-200.40M	-326.40M	-196.00M	-470.30M

Nelco Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 729.55
• 50DMA: Positive
• 100DMA: Negative
• 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:NELCO, the sentiment is Neutral. The current price of 729.55 is above the 20-day moving average (MA) of 582.33, above the 50-day MA of 614.11, and below the 200-day MA of 787.73, indicating a neutral trend. The MACD of -3.65 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 92.05 is Negative, 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
BCG	64 Neutral	₹19.39B	1.71	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NELCO	57 Neutral	₹14.25B	-349.69	―	0.13%	-7.50%	-79.50%
KERNEX	54 Neutral	₹18.63B	84.78	―	―	155.87%	―
SASKEN	54 Neutral	₹18.41B	74.37	―	1.83%	77.13%	-39.91%
RAMCOSYS	53 Neutral	₹15.95B	163.07	―	―	20.41%	―
NIITLTD	51 Neutral	₹8.73B	78.58	―	1.07%	12.25%	-28.69%

Nelco Limited Corporate Events