NELCO Ltd Stock Falls to 52-Week Low of Rs.692 Amidst Continued Downtrend

Stock Price Movement and Market Context

On 12 Jan 2026, NELCO Ltd’s share price touched an intraday low of Rs.692, representing a 2.2% drop during the trading session. This new 52-week low comes after two consecutive days of declines, with the stock losing 2.61% over this period. Despite this, the stock marginally outperformed its sector by 0.26% today. However, it remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.

In contrast, the broader market showed resilience. The Sensex, after opening 140.93 points lower, rebounded by 212.68 points to close at 83,647.99, up 0.09%. The index is currently trading approximately 3% below its 52-week high of 86,159.02. Mega-cap stocks led the market gains, while the Sensex remains below its 50-day moving average, though the 50DMA itself is above the 200DMA, indicating mixed technical signals.

Long-Term Performance and Valuation Concerns

Over the last 12 months, NELCO Ltd’s stock has delivered a negative return of 43.64%, a stark contrast to the Sensex’s positive 8.01% gain over the same period. The stock’s 52-week high was Rs.1,257.5, highlighting the extent of the decline. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the past three years, one year, and three months.

The company’s valuation metrics further underscore investor caution. NELCO’s Return on Capital Employed (ROCE) for the half-year period stands at a low 9.18%, with a trailing ROCE of 7.2%. The enterprise value to capital employed ratio is elevated at 9.7, suggesting a relatively expensive valuation despite the stock trading at a discount compared to its peers’ historical averages.

Financial Performance Trends

NELCO Ltd’s financial results have shown a downward trajectory in recent quarters. The company has reported negative results for three consecutive quarters, with operating profit declining at an annualised rate of 15.09% over the past five years. The latest six-month period saw a Profit After Tax (PAT) of Rs.3.42 crores, which represents a contraction of 60.51% compared to previous periods.

Operating cash flow for the year is at a low Rs.19.66 crores, reflecting constrained liquidity generation. Profitability metrics have also deteriorated, with profits falling by 79.5% over the past year. Despite these challenges, the company maintains a strong ability to service its debt, evidenced by a low Debt to EBITDA ratio of 1.01 times, indicating manageable leverage levels.

Market Participation and Shareholding

Notably, domestic mutual funds hold no stake in NELCO Ltd, a factor that may reflect limited institutional confidence or interest at current price levels. Given that domestic mutual funds typically conduct thorough on-the-ground research, their absence from the shareholding pattern could be indicative of cautious sentiment regarding the company’s business prospects and valuation.

Rating and Market Assessment

MarketsMOJO currently assigns NELCO Ltd a Mojo Score of 21.0, categorising the stock with a Strong Sell grade as of 1 July 2025. This represents a downgrade from the previous Sell rating, reflecting deteriorating fundamentals and subdued growth prospects. The company’s market capitalisation grade stands at 3, indicating a mid-tier valuation relative to market peers.

The stock’s long-term growth has been weak, with operating profit shrinking annually by 15.09% over five years. This sustained decline in profitability, combined with recent negative quarterly results, has contributed to the stock’s downward pressure and the new 52-week low price point.

Summary of Key Metrics

To summarise, NELCO Ltd’s key financial and market metrics as of January 2026 are:

• 52-week low price: Rs.692


• 52-week high price: Rs.1,257.5


• One-year stock return: -43.64%


• Sensex one-year return: +8.01%


• Operating profit annual growth (5 years): -15.09%


• Profit after tax (latest six months): Rs.3.42 crores (-60.51%)


• Operating cash flow (yearly): Rs.19.66 crores


• ROCE (half-year): 9.18%


• Debt to EBITDA ratio: 1.01 times


• Mojo Score: 21.0 (Strong Sell)

The stock’s performance and valuation metrics highlight the challenges faced by NELCO Ltd in maintaining growth and profitability within the IT - Hardware sector. While the company’s debt servicing capacity remains sound, the overall financial indicators and market sentiment have contributed to the stock’s recent decline to its lowest level in a year.

Unlock special upgrade rates for a limited period. Start Saving Now →