NSEI:NELCO

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Executive Summary

Nelco Limited provides systems and solutions in the areas of VSAT connectivity, and integrated security and surveillance.


Snowflake Analysis

Mediocre balance sheet unattractive dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NELCO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.4%

NELCO

3.1%

IN Communications

6.2%

IN Market


1 Year Return

-38.5%

NELCO

-34.5%

IN Communications

-19.9%

IN Market

Return vs Industry: NELCO underperformed the Indian Communications industry which returned -34.5% over the past year.

Return vs Market: NELCO underperformed the Indian Market which returned -19.9% over the past year.


Shareholder returns

NELCOIndustryMarket
7 Day14.4%3.1%6.2%
30 Day6.7%-0.6%-0.3%
90 Day-14.7%2.4%-13.4%
1 Year-38.2%-38.5%-33.9%-34.5%-18.3%-19.9%
3 Year138.6%137.4%-17.1%-18.5%-8.2%-13.1%
5 Year198.1%196.6%99.7%92.6%16.4%5.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NELCO (₹186.7) is trading above our estimate of fair value (₹13.03)

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


Price To Earnings Ratio

PE vs Industry: NELCO is poor value based on its PE Ratio (29.6x) compared to the Communications industry average (18.3x).

PE vs Market: NELCO is poor value based on its PE Ratio (29.6x) compared to the Indian market (10.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NELCO is overvalued based on its PB Ratio (6.5x) compared to the IN Communications industry average (0.8x).


Next Steps

Future Growth

How is Nelco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.9%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nelco has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nelco performed over the past 5 years?

46.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NELCO has a high level of non-cash earnings.

Growing Profit Margin: NELCO's current net profit margins (6.5%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: NELCO has become profitable over the past 5 years, growing earnings by 46.4% per year.

Accelerating Growth: NELCO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NELCO had negative earnings growth (-35.5%) over the past year, making it difficult to compare to the Communications industry average (-22.5%).


Return on Equity

High ROE: Whilst NELCO's Return on Equity (21.82%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Nelco's financial position?


Financial Position Analysis

Short Term Liabilities: NELCO's short term assets (₹1.2B) do not cover its short term liabilities (₹1.7B).

Long Term Liabilities: NELCO's short term assets (₹1.2B) exceed its long term liabilities (₹416.9M).


Debt to Equity History and Analysis

Debt Level: NELCO's debt to equity ratio (148.7%) is considered high.

Reducing Debt: NELCO's debt to equity ratio has reduced from 1039.2% to 148.7% over the past 5 years.

Debt Coverage: NELCO's debt is well covered by operating cash flow (33.8%).

Interest Coverage: NELCO's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NELCO's dividend (0.64%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.83%).

High Dividend: NELCO's dividend (0.64%) is low compared to the top 25% of dividend payers in the Indian market (3.47%).


Stability and Growth of Payments

Stable Dividend: NELCO's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19%), NELCO's dividend payments are well 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?

0.5yrs

Average board tenure


CEO

Pradip Nath (57yo)

9.33yrs

Tenure

₹23,042,369

Compensation

Mr. Pradip J. Nath has been Chief Executive Officer and Managing Director of Nelco Limited since February 23, 2011 and June 1, 2017 respecitvely. Mr. Nath has over 25 years of rich experience in the Enterp ...


CEO Compensation Analysis

Compensation vs Market: Pradip's total compensation ($USD304.96K) is above average for companies of similar size in the Indian market ($USD50.27K).

Compensation vs Earnings: Pradip's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Pradip Nath
CEO, MD & Executive Director9.33yrs₹23.04mno data
Kummamuri Murthy
Additional Non-Executive Independent Director0.42yrno datano data
Ratan Tata
Chairman Emeritusno datano datano data
Rajendra Bhinge
Non Executive Chairman7yrs₹850.00kno data
Lakshmi Nadkarni
Additional Non-Executive Independent Director0.42yrno datano data
Anand Agarwal
Non-Executive Non-Independent Director0.67yrno datano data
Ajay Pandey
Additional Non-Executive Independent Director0.42yrno datano data

0.5yrs

Average Tenure

58yo

Average Age

Experienced Board: NELCO's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Nelco Limited
  • Ticker: NELCO
  • Exchange: NSEI
  • Founded: 1940
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: ₹4.252b
  • Shares outstanding: 22.82m
  • Website: https://www.nelco.in

Number of Employees


Location

  • Nelco Limited
  • Plot No. EL-6, TTC Industrial Area
  • MIDC, Electronic Zone
  • Navi Mumbai
  • Maharashtra
  • 400710
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
504112BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002
NELCONSEI (National Stock Exchange of India)YesEquity SharesININRJan 2002

Biography

Nelco Limited provides systems and solutions in the areas of VSAT connectivity, and integrated security and surveillance. It operates through two segments, Network Systems and Automation & Control. It offers VSAT satellite communication services for renewable energy, enterprise, oil, energy, and gas sectors, as well as to bank ATM and branches. The company is also involved in the design, supply, installation, and maintenance of integrated security and surveillance solutions for application in industrial plants, power stations, broadcasting stations, telecommunications stations, airports, railways, seaports, and borders. It serves businesses and government institutions. The company was founded in 1940 and is based in Navi Mumbai, India. Nelco Limited is a subsidiary of The Tata Power Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 13:12
End of Day Share Price2020/06/02 00:00
Earnings2020/03/31
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.