NELCO

Why is NELCO Ltd falling/rising?

As of 12-Jun, NELCO Ltd's stock price is rising to 721.60, up 2.3%, driven by strong market interest and increased trading activity. Despite recent gains, the stock has a long-term decline of -31.21% over the past year, indicating potential concerns about its growth.

As of 12-Jun, NELCO Ltd's stock price is rising, currently at 721.60, with a change of 16.2 (2.3%) upward. This increase can be attributed to several factors. Firstly, the stock has outperformed its sector by 1.61% today, indicating strong market interest. Additionally, it reached an intraday high of Rs 725.2, reflecting positive momentum. The rising investor participation is also noteworthy, as the delivery volume increased by 80.59% compared to the 5-day average, suggesting heightened trading activity and interest in the stock.<BR><BR>Moreover, the stock's performance over the past week and month has been positive, with returns of +3.67% and +6.73%, respectively, while the benchmark Sensex has shown lower returns of +1.73% and +1.30% in the same periods. This relative strength against the benchmark may contribute to investor confidence.<BR><BR>However, it is important to note that despite the recent rise, NELCO Ltd has faced challenges in the long term, with a significant decline of -31.21% over the past year. The company's operating profit has also decreased at an annual rate of -22.60% over the last five years, which raises concerns about its growth potential. Nonetheless, the current positive price movement is likely driven by short-term trading dynamics and increased investor activity rather than long-term fundamentals.

Which are the latest news on NELCO?

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.

Should I buy, sell or hold NELCO Ltd?

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.

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.

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.