NELCO

Why is NELCO Ltd falling/rising?

As of 06-Aug, NELCO Ltd's stock price is at 984.90, down 1.31%, but it has increased 34.85% year-to-date. The recent decline is due to underperformance against its sector and reduced investor participation, despite the stock's overall strong long-term growth.

As of 06-Aug, NELCO Ltd's stock price is currently at 984.90, reflecting a decrease of 13.05, or 1.31%. Despite this decline, the stock has shown strong performance over various time frames, with a year-to-date increase of 34.85% compared to a 7.35% drop in the Sensex. Over the past year, NELCO has risen by 16.54%, while the Sensex has fallen by 1.97%. <BR><BR>Today, the stock is trading 4.66% away from its 52-week high of Rs 1025.65, indicating that it is close to its peak value. However, it has underperformed its sector by 4.01% today, which may contribute to the current price drop. Additionally, there has been a significant decrease in investor participation, with delivery volume falling by 65.5% compared to the 5-day average, which could signal reduced interest from investors. <BR><BR>On a positive note, NELCO is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a generally upward trend in the stock's performance over the longer term. The sector itself, particularly Defence, has gained by 2.17%, which contrasts with NELCO's current decline. <BR><BR>In summary, while NELCO Ltd has demonstrated strong long-term growth, the recent drop in price can be attributed to underperformance relative to its sector and a significant decline in investor participation.

Which are the latest news on NELCO?

Are NELCO Ltd latest results good or bad?

NELCO Ltd's latest results show a significant profit recovery with a net profit increase of 114.68% quarter-on-quarter, but year-on-year growth is modest at 30%, and concerns about demand sustainability and declining return ratios suggest caution for investors.

NELCO Ltd's latest results present a mixed picture. On one hand, the company has shown a significant sequential profit recovery, with a net profit of ₹2.34 crores for Q1 FY27, marking a remarkable 114.68% increase compared to the previous quarter. This is a positive sign after a challenging period.<BR><BR>However, year-on-year growth remains modest at 30%, and revenue growth of 7.01% to ₹80.03 crores raises concerns about demand sustainability. The operating margin, while improved at 10.40%, is still significantly lower than the 15.09% recorded in December 2024, indicating ongoing pressure on profitability.<BR><BR>The company's return on capital employed (ROCE) has sharply declined to 4.75%, and return on equity (ROE) has fallen to 5.53%, suggesting deteriorating capital efficiency. Additionally, operating cash flow has decreased significantly, which raises questions about the quality of earnings.<BR><BR>Overall, while the recent profit surge is encouraging, it masks deeper structural challenges, including declining return ratios and cash flow issues. Investors should approach NELCO with caution, monitoring future performance closely to assess whether the recent improvements can be sustained.

Should I buy, sell or hold NELCO Ltd?

What does NELCO do?

NELCO Ltd, a subsidiary of Tata Power, manufactures broadcasting equipment and operates in the IT-Hardware industry. As of March 2026, it reported net sales of ₹79 Cr and a net profit of ₹1 Cr, with a market cap of ₹1,588 Cr.

Overview:<BR>NELCO Ltd is a company engaged in the manufacturing of broadcasting equipment, operating within the IT - Hardware industry and classified as a Small Cap entity.<BR><BR>History:<BR>Founded in 1940, NELCO was originally known as National Radio & Electronics Company Limited. It has undergone a name change and is currently a subsidiary of The Tata Power Company Limited. The latest quarterly results report net sales and profit for March 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 79 Cr (Quarterly Results - Mar 2026)<BR>- Net Profit: 1 Cr (Quarterly Results - Mar 2026)<BR>- Market Cap: INR 1,588 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: 228.00<BR>- Industry P/E: 42<BR>- Dividend Yield: 0.28%<BR>- Debt Equity: 0.41<BR>- Return on Equity: 5.53%<BR>- Price to Book: 12.45<BR><BR>Contact Details:<BR>Address: EL 6 TTC Industrial Area, MIDC Electronics Zone Mahape Navi Mumbai Maharashtra : 400710<BR>Tel: 91-22-67399100<BR>Email: girish.kirkinde@nelco.in<BR>Website: http://www.nelco.in

How big is NELCO?

As of 10th June, NELCO Ltd has a market capitalization of 1,588.00 Cr, with net sales of 306.60 Cr and a net profit of 3.32 Cr in the latest four quarters. Shareholder's funds are 128.83 Cr, and total assets are valued at 315.11 Cr.

As of 10th June, NELCO Ltd has a market capitalization of 1,588.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, NELCO reported net sales of 306.60 Cr and a net profit of 3.32 Cr.<BR><BR>For the reporting period of March 2026, NELCO's shareholder's funds amounted to 128.83 Cr, while total assets were valued at 315.11 Cr.

Who are in the management team of NELCO?

The management team of NELCO includes R N Tata (Chairman Emeritus), P J Nath (Managing Director & CEO), and several non-executive and independent directors: K Narasimha Murthy, Lakshmi Nadkarni, Ajay Kumar Pandey, along with Girish V Kirkinde (Company Secretary), Saurabh Ray (Director), and Amur Swaminathan Lakshminarayanan (Chairman, Non-Executive).

The management team of NELCO includes the following individuals:<BR><BR>1. R N Tata - Chairman Emeritus<BR>2. P J Nath - Managing Director & CEO<BR>3. Girish V Kirkinde - Company Secretary & Compliance Officer<BR>4. K Narasimha Murthy - Non-Executive & Independent Director<BR>5. Lakshmi Nadkarni - Non-Executive & Independent Director<BR>6. Ajay Kumar Pandey - Non-Executive & Independent Director<BR>7. Saurabh Ray - Director<BR>8. Amur Swaminathan Lakshminarayanan - Chairman (Non-Executive)<BR><BR>If you need more details about their roles or contributions, feel free to ask!

Who are the peers of the NELCO?

NELCO's peers include Aditya Infotech, GNG Electronics, Rashi Peripheral, D-Link India, Bharat Global, Control Print, TVS Electronics, DC Infotech, E2E Networks, and Panache Digilife. Aditya Infotech shows excellent management and growth, while Bharat Global has below-average performance in both areas; NELCO's 1-year return is -30.35%.

Peers: The peers of NELCO are Aditya Infotech, GNG Electronics, Rashi Peripheral, D-Link India, Bharat Global, Control Print, TVS Elec., DC Infotech, E2E Networks, and Panache Digilife.<BR><BR>Quality Snapshot: Excellent management risk is observed at Aditya Infotech, while Average management risk is found at GNG Electronics, Rashi Peripheral, D-Link India, Control Print, TVS Elec., E2E Networks, and Panache Digilife, and the rest. Below Average management risk is noted at Bharat Global. Excellent growth is seen at Aditya Infotech and GNG Electronics, while Average growth is found at TVS Elec. and D-Link India, Good growth is noted at Panache Digilife, and the rest. Below Average growth is observed at Bharat Global, Control Print, and E2E Networks. Excellent capital structure is noted at D-Link India and Control Print, while Good capital structure is found at NELCO, TVS Elec., DC Infotech, and E2E Networks, and the rest. Below Average capital structure is observed at GNG Electronics, Bharat Global, and Panache Digilife.<BR><BR>Return Snapshot: Rashi Peripheral has the highest 1-year return at 70.35%, while Bharat Global has the lowest at -60.53%. NELCO's 1-year return of -30.35% is better than Bharat Global's but worse than Rashi Peripheral's. Additionally, Bharat Global, Control Print, and TVS Elec. have negative six-month returns.

Is NELCO technically bullish or bearish?

As of December 1, 2025, the market trend has shifted to a moderately strong bearish stance, supported by bearish momentum in the MACD, confirming daily moving averages, and bearish Bollinger Bands, despite mixed signals from the KST and weak bullish indicators from the RSI and other analyses.

As of 1 December 2025, the technical trend has changed from mildly bearish to bearish. The current stance is bearish with a moderate strength. Key indicators driving this conclusion include the weekly MACD showing bearish momentum, daily moving averages confirming a bearish trend, and both weekly and monthly Bollinger Bands indicating bearish conditions. The KST is mildly bullish on a weekly basis but remains mildly bearish monthly, suggesting mixed signals. Overall, the lack of strong bullish signals from the RSI and the absence of trends in Dow Theory and OBV further support the bearish outlook.

How has been the historical performance of NELCO?

NELCO's historical performance shows a decline in net sales and profits from March 2024 to March 2025, with net sales dropping from 320.30 Cr to 304.87 Cr and profit after tax decreasing from 23.20 Cr to 9.34 Cr, despite stable total assets. The company faced a challenging year with reduced operating profit and cash flow.

Answer:<BR>The historical performance of NELCO shows fluctuations in key financial metrics over the years, with notable changes in net sales, profits, and overall financial health.<BR><BR>Breakdown:<BR>NELCO's net sales peaked at 320.30 Cr in March 2024 but decreased to 304.87 Cr by March 2025. Total operating income followed a similar trend, declining from 320.30 Cr in March 2024 to 304.87 Cr in March 2025. The total expenditure, excluding depreciation, was 262.90 Cr in March 2025, slightly up from 260.91 Cr in March 2024. Operating profit (PBDIT) also saw a decrease from 61.75 Cr in March 2024 to 47.15 Cr in March 2025, reflecting a drop in operating profit margin from 18.54% to 13.77%. Profit before tax fell from 33.04 Cr in March 2024 to 19.47 Cr in March 2025, leading to a profit after tax of 9.34 Cr in March 2025, down from 23.20 Cr in March 2024. The company's total assets remained relatively stable at 261.95 Cr in March 2025 compared to 262.07 Cr in March 2024, while total liabilities slightly decreased to 261.95 Cr from 262.07 Cr. Cash flow from operating activities also declined from 44.00 Cr in March 2024 to 19.00 Cr in March 2025, contributing to a net cash outflow of 7.00 Cr in March 2025. Overall, NELCO's financial performance indicates a challenging year with reduced sales and profits, despite maintaining a stable asset base.

Who are the top shareholders of the NELCO?

The top shareholders of NELCO include The Tata Power Company Limited with 50.04%, Schlumberger Limited at 3.8%, and individual investors holding 37.48%. Additionally, 32 foreign institutional investors own 4.64% of the shares, with no pledged promoter holdings reported.

The top shareholders of NELCO include The Tata Power Company Limited, which holds the largest stake at 50.04%. Other significant shareholders are Schlumberger Limited, with a holding of 3.8%, and individual investors, who collectively own 37.48% of the company. Additionally, there are 32 foreign institutional investors (FIIs) that hold 4.64% of the shares. There are no pledged promoter holdings reported.

Is NELCO overvalued or undervalued?

As of April 3, 2023, NELCO is considered very expensive and overvalued with a PE ratio of 217.06, significantly higher than its peers, and has underperformed the Sensex with a year-to-date decline of 28.88%.

As of 3 April 2023, the valuation grade for NELCO has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 217.06, a Price to Book Value of 16.17, and an EV to EBITDA ratio of 50.19. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about its valuation sustainability.<BR><BR>In comparison to its peers, NELCO's PE ratio is notably higher than typical industry standards, with its closest competitor exhibiting a PE ratio significantly lower than 217.06. Additionally, the company's ROE stands at 7.45%, which is relatively low given its high valuation metrics. Despite a strong historical performance over the long term, recent stock returns have lagged behind the Sensex, particularly with a year-to-date decline of 28.88% compared to the Sensex's gain of 5.60%. This further reinforces the view that NELCO is currently overvalued in the market.

When is the next results date for NELCO?

No Upcoming Board Meetings

Has NELCO declared dividend?

NELCO Ltd has declared a 10% dividend with an ex-date of June 9, 2025, and a dividend yield of 0.25%. Despite recent price fluctuations, the company has shown significant total returns over various periods, particularly in the long term.

NELCO Ltd has declared a 10% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 10%<BR>- Ex-date: 09 Jun 25<BR><BR>Dividend Yield: 0.25%.<BR><BR>Total Returns by Period:<BR>Over the 6-month period, the price return was -28.48%, the dividend return was 0.08%, resulting in a total return of -28.4%.<BR><BR>For the 1-year period, the price return was 26.18%, the dividend return was 0.13%, leading to a total return of 26.31%.<BR><BR>In the 2-year period, the price return was 26.18%, the dividend return was 0.46%, which resulted in a total return of 26.64%.<BR><BR>During the 3-year period, the price return was 39.34%, the dividend return was 0.90%, culminating in a total return of 40.24%.<BR><BR>For the 4-year period, the price return was 276.97%, the dividend return was 2.15%, yielding a total return of 279.12%.<BR><BR>In the 5-year period, the price return was 361.95%, the dividend return was 4.80%, resulting in a total return of 366.75%.<BR><BR>Overall, NELCO has declared a dividend, and while the dividend yield is relatively low at 0.25%, the total returns over various periods show significant growth, particularly over the longer term. This indicates a potentially strong investment despite recent fluctuations in price returns.