NESCO Limited (NESCO) AI Stock Analysis

• Market Cap: ₹80.09B
• Dividend Yield: 0.52%
• Average Volume (3M): 8.12K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.85
• Revenue Growth: 18.69%
• EPS Growth: 10.14%
• Country: IN
• Employees: 220
• Sector: Services
• Sector Strength: N/A
• Industry: Conglomerates
• EPS (TTM): 14.85
• Shares Outstanding: 70,459,960
• 10 Day Avg. Volume: 2,795
• 30 Day Avg. Volume: 8,118
• PEG Ratio: 5.17
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 9.01
• P/FCF Ratio: -19.38
• 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: 69 Neutral
• Price Target: ₹1,245.00 ▼(-0.08% Downside)

NESCO Limited's overall stock score reflects its strong financial performance and reasonable valuation. The company's robust revenue growth and profitability are significant strengths, although technical indicators suggest some short-term weakness. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong revenue growth

Nearly 20% revenue growth shows durable demand for NESCO's leased space and event services. Sustained top-line expansion supports reinvestment in campus assets and improves long-term cash generation, driven by recurring leasing income and stronger venue utilization trends.

High profitability margins

Consistently strong gross and net margins indicate efficient cost management across leasing and event operations. Solid EBIT/EBITDA margins create durable earnings power, enabling the company to absorb cyclical dips in events while funding maintenance and selective growth investments.

Low leverage and strong equity base

A very low debt-to-equity ratio and strong equity base provide financial resilience and flexibility. This durable capital structure lowers refinancing risk, supports long-term capital projects, and preserves the ability to fund expansions or weather downturns without onerous interest burdens.

Negative Factors

Free cash flow pressured by capex

Material capex driving down free cash flow reduces near-term liquidity available for discretionary uses. If investment cadence continues, free cash flow recovery may lag earnings, constraining optional spending and necessitating careful prioritization of projects over the next several quarters.

Slight drop in cash and short-term investments

A decline in cash and short-term investments weakens the immediate liquidity buffer. Coupled with elevated capex, this reduces the margin for error if leasing renewals or event volumes soften, potentially limiting flexibility to seize opportunistic investments or absorb short-term revenue shocks.

Revenue sensitivity to occupancy and events

Business reliance on office occupancy and event volumes creates structural demand risk. Shifts in corporate space usage or lower event activity can materially affect recurring rental and venue income, making revenues and cash generation more cyclical and sensitive to macro and sector trends.

NESCO Limited Business Overview & Revenue Model

Company Description

Nesco Limited operates exhibition center and IT park in India. It operates through IT Park, Bombay Exhibition Center, Industrial Capital Goods Division, and Nesco Foods segments. The company is also involved in the operation of exhibition center that provides space and related infrastructure for exhibitions, conventions, and conferences, as well as convenes own exhibitions and events. In addition, it manufactures and sells shot blasting, shot peening, and other surface preparation equipment and systems; spares and abrasives for shot blasting, peening, etc.; and offers facility development and management services. Further, it invests in mutual funds, corporate deposits, non-convertible debentures, bonds, and preference shares; and operates non-flight kitchens, restaurants, food courts, and lounge bars, as well as provides food catering services. The company was formerly known as New Standard Engineering Co. Ltd. Nesco Limited was founded in 1939 and is based in Mumbai, India.

How the Company Makes Money

NESCO generates revenue through multiple key streams. Primarily, the company earns income from renting out its exhibition and convention spaces for various events, including trade shows, conferences, and exhibitions. This rental income constitutes a significant portion of its revenue. Additionally, NESCO derives earnings from its real estate ventures by developing and leasing commercial and residential properties. The company also offers facility management services, which contribute to its revenue. Strategic partnerships with event organizers and businesses seeking venue space further enhance its earning potential. Moreover, NESCO's ability to attract large-scale events boosts its visibility and profitability, especially in the competitive exhibition industry.

NESCO Limited Financial Statement Overview

Summary

NESCO Limited demonstrates strong financial performance with consistent revenue growth, robust profitability margins, and a healthy balance sheet. The company has low leverage and a strong equity base, although there is a slight concern over the decline in free cash flow due to capital expenditures.

Income Statement

NESCO Limited exhibits strong financial performance with consistent revenue growth and robust profitability margins. The gross profit margin is high, indicating efficient cost management. The net profit margin also remains healthy, showing strong bottom-line performance. Revenue growth rate is strong, especially in the latest fiscal year, indicating positive business momentum. EBIT and EBITDA margins are solid, showcasing operational efficiency.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio, highlighting financial stability and low leverage. The company has a strong equity ratio, indicating a solid capital structure with a majority of funding from equity. Return on equity is impressive, reflecting effective use of shareholders' funds to generate profits. However, the slight decrease in cash and short-term investments year-over-year could warrant attention.

Cash Flow

Operating cash flow is strong and growing, which is crucial for funding operations and investments. However, a decline in free cash flow in the most recent fiscal year due to significant capital expenditures is a concern, even though it suggests potential growth investments. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.84B	7.32B	6.78B	5.46B	3.37B	2.91B
Gross Profit	6.38B	5.80B	6.17B	4.23B	2.42B	2.14B
EBITDA	5.74B	5.51B	5.31B	3.80B	2.55B	2.42B
Net Income	4.02B	3.75B	3.63B	2.91B	1.89B	1.72B
Balance Sheet
Total Assets	0.00	30.16B	26.50B	22.63B	19.72B	18.22B
Cash, Cash Equivalents and Short-Term Investments	0.00	2.66B	3.52B	4.09B	2.05B	1.32B
Total Debt	0.00	9.70M	2.59M	4.45M	5.99M	0.00
Total Liabilities	-26.29B	3.86B	3.54B	2.98B	2.74B	2.93B
Stockholders Equity	26.29B	26.29B	22.97B	19.65B	16.98B	15.29B
Cash Flow
Free Cash Flow	0.00	-3.40B	2.72B	2.84B	145.04M	721.24M
Operating Cash Flow	0.00	4.43B	3.76B	2.97B	1.63B	1.30B
Investing Cash Flow	0.00	-4.10B	-3.33B	-2.65B	-1.42B	-1.33B
Financing Cash Flow	0.00	-415.65M	-325.23M	-236.71M	-206.54M	-1.66M

NESCO Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1246.00
• 50DMA: Negative
• 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:NESCO, the sentiment is Negative. The current price of 1246 is above the 20-day moving average (MA) of 1162.43, above the 50-day MA of 1209.01, and above the 200-day MA of 1216.04, indicating a bearish trend. The MACD of -29.22 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 32.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NESCO.

NESCO Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICRA	72 Outperform	₹60.88B	32.26	―	0.97%	8.06%	24.52%
NESCO	69 Neutral	₹80.09B	18.97	―	0.52%	18.69%	10.14%
AHLUCONT	68 Neutral	₹58.27B	21.83	―	0.06%	5.56%	-22.59%
WELENT	63 Neutral	₹65.71B	18.49	―	0.58%	9.11%	16.30%
IONEXCHANG	60 Neutral	₹52.02B	23.43	―	0.40%	11.56%	-2.78%
MHRIL	57 Neutral	₹59.81B	59.08	―	―	4.25%	17.51%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

NESCO Limited Corporate Events

Nesco Posts Strong Q3 and Nine-Month FY2025 Results, Adds New ‘Way Side Amenities’ Segment

Nesco Limited has published its unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, reporting continued growth in revenue and profits. Consolidated total income from operations rose to ₹274.43 crore for the quarter and ₹759.46 crore for the nine-month period, with profit after tax at ₹104.64 crore for the quarter and ₹319.69 crore for nine months, indicating a solid performance versus the previous year. The company noted that the recent implementation of India’s new labour codes from 21 November 2025 has had no material incremental impact so far and has been factored into the current results, with further assessment to follow as detailed rules are notified. Nesco has also introduced a new reporting segment, Way Side Amenities, reflecting business conducted from premises acquired on long-term lease and leading to recognition of right-of-use assets and lease liabilities under Ind AS, signalling a strategic expansion into additional infrastructure-led revenue streams. The results have been reviewed by the audit committee, approved by the board on 27 January 2026, and made available on the stock exchanges and the company’s website, underscoring regulatory compliance and transparency for investors and other stakeholders.

Nesco Limited Board Clears Q3 FY2025-26 Unaudited Results, Profit After Tax at ₹104.64 Crore

Nesco Limited’s board of directors has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. For the quarter, standalone revenue from operations rose to ₹247.92 crore, with total income reaching ₹274.42 crore, while total expenses stood at ₹142.57 crore, resulting in profit before tax of ₹131.85 crore and profit after tax of ₹104.64 crore. For the nine‑month period, total income climbed to ₹759.45 crore and profit after tax to ₹319.75 crore, indicating year‑on‑year growth versus the comparable period in 2024. The figures highlight strong operational performance, driven by higher material consumption and other operating expenses consistent with expanding activity, and underscore Nesco’s continued profitability and earnings generation, which are key for shareholders assessing the company’s financial health and trajectory.

NESCO Board Clears Strong Q3 and Nine-Month FY26 Unaudited Results

NESCO Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. On a standalone basis, revenue from operations for the quarter rose to ₹247.92 crore compared with ₹206.54 crore a year earlier, helping total income reach ₹274.42 crore. Profit after tax for the quarter stood at ₹104.64 crore, slightly lower than the immediately preceding quarter but higher than the year-ago period, while nine‑month profit after tax increased to ₹319.75 crore from ₹286.60 crore, signalling sustained earnings growth. The figures indicate robust operational performance, with higher material, employee and other expenses reflecting business expansion, and an improvement in earnings per share versus the prior-year period, underscoring the company’s strengthening financial position for shareholders.

Nesco Says Routine GST Search Concluded With No Further Material Updates

Nesco Limited has announced that a routine search conducted by the Office of the Commissioner of State Tax, Maharashtra State, Mumbai (GST) at the company’s premises has been completed, with the company stating it fully cooperated with the authorities. The company added that there are currently no further material developments arising from this action that warrant additional disclosure under securities listing regulations, suggesting no immediate impact on its operations or obligations to stakeholders beyond this update.

Nesco Discloses GST Tax and Penalty Order, Says No Operational Impact

Nesco Limited has disclosed that the Office of the Superintendent, CBIC in Anand, Vadodara, Gujarat has issued an order demanding payment of Rs 13.74 lakh in tax and an equivalent penalty for the financial years 2019-20 to 2021-22, based on allegations that the company was ineligible to claim GST input tax credit. The company has stated that the order is not expected to have any impact on its financial or operational activities at this stage and that it will evaluate its options, including the possibility of filing an appeal against the tax demand and penalty.

Nesco Says GST Search Is Routine, Sees No Impact on Operations

Nesco Limited has disclosed that it received an authorization letter dated 19 December 2025 from the Office of the Commissioner of State Tax, Maharashtra, permitting inspection and search of the company under Section 67 of the Maharashtra Goods and Services Tax Act, 2017. The company stated that this is a routine search, no formal orders or documents alleging specific violations have been issued so far, and there is currently no quantifiable impact on its financials or operations, with business activities continuing as usual.

Nesco Limited Revises Project Scope on Bengaluru Chennai Expressway

Nesco Limited announced a revision in its project with National Highways Logistics Management Limited (NHLML) regarding the development of wayside amenities on the Bengaluru Chennai Expressway Corridor. Due to feasibility challenges, Nesco has surrendered two of the three initially awarded sites, with NHLML accepting this decision. The company will now focus on developing one site, with an estimated development cost of Rs. 75 crores and expected annual revenue of Rs. 115 crores from the fourth year of operations. The annual lease rent for this site is set at Rs. 5.53 crores, subject to annual revisions based on WPI and CPI. There are no financial penalties imposed on Nesco for surrendering the two sites.