NSEI:NESCO

Stock Analysis Report

Executive Summary

Nesco Limited operates exhibition center and IT park in India.

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.

Share Price & News

How has Nesco's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

NESCO

4.3%

IN Real Estate

3.3%

IN Market


1 Year Return

28.8%

NESCO

20.4%

IN Real Estate

7.1%

IN Market

Return vs Industry: NESCO exceeded the Indian Real Estate industry which returned 20.4% over the past year.

Return vs Market: NESCO exceeded the Indian Market which returned 7.1% over the past year.


Shareholder returns

NESCOIndustryMarket
7 Day0.3%4.3%3.3%
30 Day4.5%-1.1%2.9%
90 Day4.9%-3.8%3.1%
1 Year29.4%28.8%21.1%20.4%9.4%7.1%
3 Year53.6%51.5%27.7%25.2%22.7%16.4%
5 Year136.8%131.3%49.5%44.1%44.0%30.4%

Price Volatility Vs. Market

How volatile is Nesco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nesco undervalued compared to its fair value and its price relative to the market?

22.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NESCO (₹569.2) is trading above our estimate of fair value (₹407.69)

Significantly Below Fair Value: NESCO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NESCO is poor value based on its PE Ratio (22x) compared to the Real Estate industry average (13.1x).

PE vs Market: NESCO is poor value based on its PE Ratio (22x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NESCO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NESCO is overvalued based on its PB Ratio (3.4x) compared to the IN Real Estate industry average (0.7x).


Next Steps

Future Growth

How is Nesco forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESCO's earnings are forecast to decline over the next 3 years (-15.5% per year).

Earnings vs Market: NESCO's earnings are forecast to decline over the next 3 years (-15.5% per year).

High Growth Earnings: NESCO's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NESCO's revenue (22.4% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: NESCO's revenue (22.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NESCO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nesco performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NESCO's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: NESCO's earnings growth over the past year (1.3%) is below its 5-year average (13.5% per year).

Earnings vs Industry: NESCO earnings growth over the past year (1.3%) exceeded the Real Estate industry 0.01%.


Return on Equity

High ROE: NESCO's Return on Equity (15.5%) is considered low.


Return on Assets

ROA vs Industry: NESCO has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: NESCO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Nesco's financial position?


Financial Position Analysis

Short Term Liabilities: NESCO's short term assets (₹702.7M) do not cover its short term liabilities (₹906.1M)

Long Term Liabilities: NESCO's short term assets (702.7M) do not cover its long term liabilities (876.5M)


Debt to Equity History and Analysis

Debt Level: NESCO is debt free.

Reducing Debt: NESCO has not had any debt for past 5 years.

Debt Coverage: NESCO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NESCO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NESCO has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if NESCO's debt is covered by short term assets.


Next Steps

Dividend

What is Nesco's current dividend yield, its reliability and sustainability?

0.44%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NESCO's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: NESCO's dividend (0.44%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: NESCO's dividends per share have been stable in the past 10 years.

Growing Dividend: NESCO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.7%), NESCO's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Nesco's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average board tenure


CEO

Krishna Patel 0

0yrs

Tenure

₹26,088,000

Compensation

Mr. Krishna Sumant Patel has been Managing Director and Executive Director of Nesco Limited since August 10, 2016 and July 1, 2008 respectively. Mr. Patel served as Joint Managing Director of Nesco Limited ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Krishna's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Krishna's compensation has been consistent with company performance over the past year.


Board Age and Tenure

9.1yrs

Average Tenure

69yo

Average Age

Experienced Board: NESCO's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,510,14028 Nov 18
Chandler & Price (India) Pvt. Ltd.
EntityCompany
Shares3,403
Max Price₹443.77
Buy₹1,007,01023 Nov 18
Chandler & Price (India) Pvt. Ltd.
EntityCompany
Shares2,281
Max Price₹441.48
Buy₹2,008,59521 Nov 18
Chandler & Price (India) Pvt. Ltd.
EntityCompany
Shares4,562
Max Price₹440.29

Ownership Breakdown


Management Team

  • Sumant Patel (80yo)

    Executive Chairman

    • Tenure: 3.2yrs
    • Compensation: ₹44.60m
  • Krishna Patel

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹26.09m
  • Dipesh Singhania

    CFO & Head Legal

    • Tenure: 7.5yrs
  • Jinal Shah

    Compliance Officer & Company Secretary

    • Tenure: 3.7yrs

Board Members

  • Manu Mahmud (69yo)

    Non-Executive & Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹160.00k
  • Sumant Patel (80yo)

    Executive Chairman

    • Tenure: 3.2yrs
    • Compensation: ₹44.60m
  • Sudha Patel (81yo)

    Non-Executive Director

    • Tenure: 18.3yrs
    • Compensation: ₹140.00k
  • Kuruganti Sesha Murty (76yo)

    Non Executive & Independent Director

    • Tenure: 12.3yrs
    • Compensation: ₹65.00k
  • Mahendrakumar Chouhan (64yo)

    Non Executive & Independent Director

    • Tenure: 14.5yrs
    • Compensation: ₹175.00k
  • Krishna Patel

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹26.09m
  • Jai Diwanji (46yo)

    Non-Executive & Independent Director

    • Tenure: 6.9yrs
    • Compensation: ₹250.00k
  • Amrita Chowdhury (49yo)

    Additional Non-Executive Independent Director

    • Tenure: 0.4yrs

Company Information

Nesco Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nesco Limited
  • Ticker: NESCO
  • Exchange: NSEI
  • Founded: 1939
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: ₹40.028b
  • Shares outstanding: 70.46m
  • Website: https://www.nesco.in

Number of Employees


Location

  • Nesco Limited
  • Nesco Center
  • Western Express Highway
  • Mumbai
  • Maharashtra
  • 400063
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505355BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1996
NESCONSEI (National Stock Exchange of India)YesEquity SharesININROct 1996

Biography

Nesco Limited operates exhibition center and IT park in India. The company is also involved in the operation of convention and exhibition center that provides space for trade fairs, exhibitions, convention ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:45
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.