NESCO Limited (NESCO) AI Stock Analysis

• Market Cap: ₹74.28B
• Dividend Yield: 0.52%
• Average Volume (3M): 8.12K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.81
• 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): 58.7
• Revenue Forecast (FY): ₹8.82B

• Rating: 69 Neutral
• Price Target: ₹1,154.00 ▼(-7.38% Downside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

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

Recurring leasing + exhibition revenue

NESCO's campus monetization model combines stable, recurring rental income from leased office and commercial space with event-driven revenue from exhibitions and conventions. This diversified, repeatable cash mix and service-recovery charges support predictable long-term cash flows and lower revenue volatility.

Strong revenue growth & margins

Reported consistent top-line growth accompanied by high gross and healthy net margins demonstrates efficient cost management and profitable operations. Sustained revenue momentum with solid margins underpins the company's ability to reinvest in assets and maintain durable cash generation over the medium term.

Conservative capital structure

A very low leverage profile and strong equity base provide financial resilience and flexibility. This conservative balance sheet reduces interest burden, preserves borrowing capacity for growth capex, and creates a durable buffer against cyclical downturns in real-estate and event demand.

Negative Factors

Free cash flow decline from capex

Significant capital expenditures have reduced free cash flow despite strong operating cash generation. If large investments continue before translating into higher rents or event yield, free cash flow recovery may be delayed, constraining dividends, buybacks, or organic funding of further expansion.

Lower cash & short-term investments YoY

A year-over-year decline in cash and short-term investments narrows liquidity buffers. Combined with heavy capex, this weaker cash reserve profile reduces near-term flexibility to absorb shocks or pursue opportunistic investments without raising leverage or issuing equity.

Earnings growth lags revenue growth

EPS growth (~4.2%) materially trails revenue growth (~19.7%), indicating weaker earnings conversion. This gap may reflect margin pressure, higher non-operating costs, or dilution. If persistent, it risks undermining returns on equity and questions the sustainability of profit expansion despite rising revenues.

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 primarily makes money by monetizing its owned real-estate and venue infrastructure through (1) leasing and licensing income from its business park/office buildings and related commercial spaces, and (2) revenue from exhibitions, conventions, and events hosted at the NESCO Centre. The leasing model generates recurring rental income and typically includes recoveries/charges for campus services (e.g., maintenance, utilities, parking, and other facility-management-related billings where applicable). The exhibition/convention model generates event-related income from renting halls/venues and charging for ancillary services provided to organizers and exhibitors (e.g., space rentals, utilities and service charges, and venue-related facilities). Overall earnings are driven by occupancy and rental rates across its commercial properties, and by event volumes, venue utilization, and pricing for exhibition/convention services.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.31B	7.32B	6.78B	5.46B	3.37B	2.91B
Gross Profit	6.95B	5.80B	6.17B	4.23B	2.42B	2.14B
EBITDA	5.82B	5.51B	5.31B	3.80B	2.55B	2.42B
Net Income	4.14B	3.75B	3.63B	2.91B	1.89B	1.72B
Balance Sheet
Total Assets	33.53B	30.16B	26.50B	22.63B	19.72B	18.22B
Cash, Cash Equivalents and Short-Term Investments	2.83B	2.66B	3.52B	4.09B	2.05B	1.32B
Total Debt	1.09B	9.70M	2.59M	4.45M	5.99M	0.00
Total Liabilities	5.54B	3.86B	3.54B	2.98B	2.74B	2.93B
Stockholders Equity	27.99B	26.29B	22.97B	19.65B	16.98B	15.29B
Cash Flow
Free Cash Flow	719.50M	-3.40B	2.72B	2.84B	145.04M	721.24M
Operating Cash Flow	2.17B	4.43B	3.76B	2.97B	1.63B	1.30B
Investing Cash Flow	-2.80B	-4.10B	-3.33B	-2.65B	-1.42B	-1.33B
Financing Cash Flow	619.20M	-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 1085.93, above the 50-day MA of 1131.54, and above the 200-day MA of 1244.99, indicating a bearish trend. The MACD of -29.57 indicates Positive momentum. The RSI at 41.41 is Neutral, neither overbought nor oversold. The STOCH value of 50.85 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	₹49.81B	37.64	―	0.97%	8.06%	24.52%
NESCO	69 Neutral	₹74.28B	20.62	―	0.52%	18.69%	10.14%
AHLUCONT	68 Neutral	₹48.68B	30.38	―	0.06%	5.56%	-22.59%
WELENT	63 Neutral	₹63.63B	74.06	―	0.58%	9.11%	16.30%
IONEXCHANG	60 Neutral	₹49.54B	55.57	―	0.40%	11.56%	-2.78%
MHRIL	57 Neutral	₹51.88B	702.73	―	―	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.