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.

Who are the peers of the NELCO?

NELCO's peers include Bharat Global, Rashi Peripheral, D-Link India, Control Print, TVS Electronics, HCL Infosystems, DC Infotech, Vintron Info., and E2E Networks. NELCO has average management risk and below average growth, with a 1-year return of 24.02%, outperforming Bharat Global's negative return.

Peers: The peers of NELCO are Bharat Global, Rashi Peripheral, D-Link India, Control Print, TVS Elec., HCL Infosystems, DC Infotech, Vintron Info., and E2E Networks.<BR><BR>Quality Snapshot: Excellent management risk is observed at DC Infotech and Vintron Info., while Average management risk is found at NELCO, Rashi Peripheral, D-Link India, Control Print, TVS Elec., and E2E Networks. Below Average management risk is noted at HCL Infosystems, and Bharat Global does not qualify. In terms of Growth, Excellent growth is seen at Vintron Info. and E2E Networks, Good growth is found at Rashi Peripheral and DC Infotech, while NELCO and Control Print have Below Average growth. Bharat Global does not qualify for growth. For Capital Structure, Excellent capital structure is observed at D-Link India, Control Print, and TVS Elec., while NELCO and DC Infotech have Good capital structure, Average capital structure is seen at Rashi Peripheral, and HCL Infosystems has Below Average capital structure.<BR><BR>Return Snapshot: NELCO's 1-year return is 24.02%, with the highest return among peers being 28.13% from TVS Elec. and the lowest being -84.42% from Bharat Global. NELCO's return is significantly positive compared to Bharat Global's negative performance. Additionally, the six-month returns are negative for Bharat Global, Vintron Info., and HCL Infosystems.

Who are in the management team of NELCO?

As of March 2023, the management team of NELCO includes R N Tata (Chairman Emeritus), P J Nath (Managing Director & CEO), and several non-executive and independent directors, including K Narasimha Murthy, Lakshmi Nadkarni, and Ajay Kumar Pandey, among others. Each member contributes to the company's governance and operations.

As of March 2023, 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>Each member plays a distinct role within the organization, contributing to its governance and operational management.

What does NELCO do?

NELCO Ltd, founded in 1940, manufactures broadcasting equipment and operates in the IT - Hardware industry with a market cap of INR 2,029 Cr. As of June 2025, it reported net sales of 748 Cr and a net profit of 18 Cr.

Overview:<BR>NELCO Ltd is a company that manufactures broadcasting equipment and operates in the IT - Hardware industry, categorized as a Small Cap.<BR><BR>History:<BR>Founded in 1940, NELCO was initially known as National Radio & Electronics Company. It has undergone a name change and currently reports its latest quarterly results for June 2025, with net sales and profit figures available.<BR><BR>Financial Snapshot:<BR>Net Sales: 748 Cr (Quarterly Results - Jun 2025) <BR>Net Profit: 18 Cr (Quarterly Results - Jun 2025) <BR>Market Cap: INR 2,029 Cr (Small Cap)<BR><BR>Key Metrics:<BR>P/E: 299.00 <BR>Industry P/E: 50 <BR>Dividend Yield: 0.11% <BR>Debt-Equity: 0.30 <BR>Return on Equity: 7.45% <BR>Price to Book: 15.72 <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

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.

How big is NELCO?

As of 24th July, NELCO Ltd has a market capitalization of 1,975.00 Cr, with recent Net Sales of 305.58 Cr and a Net Profit of 6.77 Cr. Shareholder's Funds are 127.90 Cr, and Total Assets are valued at 261.95 Cr.

As of 24th July, NELCO Ltd has a market capitalization of 1,975.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, NELCO reported Net Sales of 305.58 Cr and a Net Profit of 6.77 Cr.<BR><BR>For the reporting period of March 2025, NELCO's Shareholder's Funds amounted to 127.90 Cr, while Total Assets were valued at 261.95 Cr.

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.

Are NELCO latest results good or bad?

NELCO's latest Q2 FY26 results are concerning, showing a 58.38% decline in net profit to ₹1.59 crore and a 9.96% drop in revenue to ₹74.33 crore, marking the third consecutive quarter of revenue decline and indicating significant operational challenges. Overall, the performance suggests a negative outlook for the company.

NELCO's latest results for Q2 FY26 indicate a troubling performance. The company reported a net profit of ₹1.59 crore, which is a significant decline of 58.38% year-on-year. Revenue also fell by 9.96% year-on-year to ₹74.33 crore, marking the third consecutive quarter of revenue decline. Additionally, the operating margin has contracted sharply to 10.05%, down from 13.13% in the same quarter last year.<BR><BR>The return on equity (ROE) stands at a disappointing 7.45%, which is below average and indicates poor capital efficiency. The company's profitability metrics are concerning, with a PAT margin of just 2.14%, down from 4.63% a year ago. Furthermore, the operating cash flow has plummeted significantly, highlighting ongoing operational challenges.<BR><BR>Overall, the results reflect a company facing substantial difficulties, with declining revenues, shrinking margins, and deteriorating profitability metrics. This performance suggests that NELCO is currently in a challenging position, making the latest results lean towards the negative side.

Should I buy, sell or hold NELCO?

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.

Which are the latest news on NELCO?

Why is NELCO falling/rising?

As of 04-Dec, NELCO Ltd's stock price is declining at 826.55, down 1.44%, and underperforming its sector. The stock shows a bearish trend with significant drops in investor participation and poor long-term growth, compounded by negative financial results and lack of institutional confidence.

As of 04-Dec, NELCO Ltd's stock price is falling, currently at 826.55, reflecting a decrease of 12.05 or 1.44%. The stock has underperformed the sector today by 2.03% and is trading below its moving averages across various time frames, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This indicates a bearish trend in the stock's performance.<BR><BR>In terms of investor participation, there has been a significant decline, with delivery volume dropping by 50.93% compared to the 5-day average. This reduction in trading activity suggests a lack of confidence among investors. Furthermore, the stock has exhibited poor long-term growth, with operating profit declining at an annual rate of 15.09% over the last five years. The company has reported negative results for the last three consecutive quarters, with a notable drop in profit after tax (PAT) by 60.51% in the latest six months.<BR><BR>Additionally, the stock has generated a return of -36.73% over the past year, while its profits have decreased by 79.5%. The low debt to EBITDA ratio of 1.01 times indicates some ability to service debt, but this is overshadowed by the overall poor financial performance and the lack of investment from domestic mutual funds, which hold 0% of the company. This lack of institutional confidence further contributes to the stock's downward trajectory. Overall, the combination of declining performance metrics, reduced investor participation, and negative sentiment in the market are key factors driving NELCO's stock price down.