NESCO Ltd (NESCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SIS

Indiabulls

Quess Corp

Smartworks Cowor

Nirlon

International Ge

Wework India

CMS Info Systems

Indiqube Spaces

Hemisphere Prop

NESCO

Why is NESCO Ltd ?

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At Rs 23.29 cr has Grown at 124.37%
OPERATING PROFIT TO INTEREST(Q) Lowest at 14.10 times
ROCE(HY) Lowest at 16.55%

With ROE of 13.8, it has a Very Expensive valuation with a 2.4 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.42%, its profits have risen by 3.7% ; the PEG ratio of the company is 4.7

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 2.91% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.42% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NESCO for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

NESCO

-22.42%

-0.66

33.74%

Sensex

-3.2%

-0.24

13.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.41%

EBIT Growth (5y)

22.62%

EBIT to Interest (avg)

24.17

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.28

Tax Ratio

19.71%

Dividend Payout Ratio

12.21%

Pledged Shares

Institutional Holding

8.44%

ROCE (avg)

16.03%

ROE (avg)

13.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.45

EV to EBIT

16.69

EV to EBITDA

14.97

EV to Capital Employed

2.50

EV to Sales

7.59

PEG Ratio

4.72

Dividend Yield

0.67%

ROCE (Latest)

15.30%

ROE (Latest)

13.77%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

NET SALES(9M)

At Rs 711.34 cr has Grown at 20.18%

-18What is not working for the Company

INTEREST(9M)

At Rs 23.29 cr has Grown at 124.37%

OPERATING PROFIT TO INTEREST(Q)

Lowest at 14.10 times

ROCE(HY)

Lowest at 16.55%

DEBT-EQUITY RATIO(HY)

Highest at 0.09 times

NET SALES(Q)

At Rs 211.80 cr has Fallen at -9.1% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 102.37 cr.

PBT LESS OI(Q)

Lowest at Rs 83.44 cr.

NON-OPERATING INCOME(Q)

is 34.32 % of Profit Before Tax (PBT

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Here's what is not working for NESCO

Interest - Nine Monthly

At Rs 23.29 cr has Grown at 124.37%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 14.10 times and Fallen

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 83.44 cr has Fallen at -19.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 104.02 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 211.80 cr has Fallen at -9.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 233.02 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 102.37 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 83.44 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 34.32 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 0.09 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 43.60 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income