NSEI:NESCO

Stock Analysis Report

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Executive Summary

Nesco Limited operates exhibition center and IT park in India. More Details

Rewards

PE ratio (14.6x) is below the Indian market (16.4x)

Earnings grew by 36% over the past year

Pays a reliable dividend of 0.58%

Risk Analysis

No risks detected for NESCO from our risk checks.


Snowflake Analysis

Excellent balance sheet with solid track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NESCO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

NESCO

11.8%

IN Real Estate

1.6%

IN Market


1 Year Return

-7.8%

NESCO

-9.1%

IN Real Estate

2.4%

IN Market

Return vs Industry: NESCO exceeded the Indian Real Estate industry which returned -9.1% over the past year.

Return vs Market: NESCO underperformed the Indian Market which returned 2.4% over the past year.


Shareholder returns

NESCOIndustryMarket
7 Day-2.0%11.8%1.6%
30 Day-6.8%12.5%4.2%
90 Day13.6%20.7%7.3%
1 Year-7.2%-7.8%-8.7%-9.1%4.2%2.4%
3 Year3.5%2.0%-15.3%-16.7%-1.5%-6.2%
5 Year81.5%77.1%36.1%31.7%40.4%30.0%

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?

14.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NESCO (₹517.9) is trading above our estimate of fair value (₹95.16)

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


Price To Earnings Ratio

PE vs Industry: NESCO's PE Ratio (14.6x) is in line with the IN Real Estate industry average.

PE vs Market: NESCO is good value based on its PE Ratio (14.6x) compared to the Indian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: NESCO is poor value based on its PEG Ratio (8.6x)


Price to Book Ratio

PB vs Industry: NESCO is overvalued based on its PB Ratio (2.7x) compared to the IN Real Estate industry average (0.6x).


Next Steps

Future Growth

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

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NESCO's forecast earnings growth (1.7% per year) is below the savings rate (7.2%).

Earnings vs Market: NESCO's earnings (1.7% per year) are forecast to grow slower than the Indian market (25.8% per year).

High Growth Earnings: NESCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: NESCO's revenue (0.03% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: NESCO's revenue (0.03% per year) is forecast to grow slower 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?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NESCO has high quality earnings.

Growing Profit Margin: NESCO's current net profit margins (50.9%) are higher than last year (46.3%).


Past Earnings Growth Analysis

Earnings Trend: NESCO's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: NESCO's earnings growth over the past year (36%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: NESCO earnings growth over the past year (36%) exceeded the Real Estate industry -4.7%.


Return on Equity

High ROE: NESCO's Return on Equity (18.2%) is considered low.


Next Steps

Financial Health

How is Nesco's financial position?


Financial Position Analysis

Short Term Liabilities: NESCO's short term assets (₹1.1B) exceed its short term liabilities (₹1.0B).

Long Term Liabilities: NESCO's short term assets (₹1.1B) do not cover its long term liabilities (₹1.5B).


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


Next Steps

Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NESCO's dividend (0.58%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: NESCO's dividend (0.58%) is low compared to the top 25% of dividend payers in the Indian market (2.28%).


Stability and Growth of Payments

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 (8.5%), 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

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average board tenure


CEO

Krishna Patel

no data

Tenure

₹102,096,000

Compensation

Mr. Krishna Sumant Patel serves as Vice Chairman at Nesco Limited since February 7, 2020. He has been Managing Director and Executive Director of Nesco Limited since August 10, 2016 and July 1, 2008 respec ...


CEO Compensation Analysis

Compensation vs Market: Krishna's total compensation ($USD1.39M) is above average for companies of similar size in the Indian market ($USD357.22K).

Compensation vs Earnings: Krishna's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Sumant Patel
Executive Chairman4.17yrs₹99.60m17.07%
₹ 6.2b
Krishna Patel
Executive Vice Chairman & MDno data₹102.10m3.02%
₹ 1.1b
Manu Mahmud
Non-Executive & Independent Director3.42yrs₹325.00k0.028%
₹ 10.4m
Sudha Patel
Non-Executive Director19.25yrs₹295.00k6.49%
₹ 2.4b
Kuruganti Sesha Murty
Non Executive & Independent Director13.25yrs₹335.00kno data
Mahendrakumar Chouhan
Non Executive & Independent Director15.5yrs₹430.00k0.0030%
₹ 1.1m
Jai Diwanji
Non-Executive & Independent Director7.92yrs₹350.00k0.0036%
₹ 1.3m
Amrita Chowdhury
Non-Executive Independent Director1.42yrs₹360.00kno data

6.0yrs

Average Tenure

70yo

Average Age

Experienced Board: NESCO's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹36.505b
  • 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. It operates through IT Park, Bombay Exhibition Center, Industrial Capital Goods Division, and Nesco Foods segments. The company is also involv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 12:40
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.