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Nelco

NSEI:NELCO
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NELCO
NSEI
₹6B
Market Cap
  1. Home
  2. IN
  3. Tech
Company description

Nelco Limited provides systems and solutions in the areas of VSAT connectivity, and integrated security and surveillance. The last earnings update was 25 days ago. More info.


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NELCO Share Price and Events
7 Day Returns
8%
NSEI:NELCO
5.1%
IN Communications
3.5%
IN Market
1 Year Returns
26.3%
NSEI:NELCO
-26.7%
IN Communications
-0.9%
IN Market
NELCO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nelco (NELCO) 8% 0.1% 22.8% 26.3% 229.5% 478.1%
IN Communications 5.1% -9.2% -12.6% -26.7% 118.4% 197%
IN Market 3.5% -2.6% 7.2% -0.9% 37.9% 44%
1 Year Return vs Industry and Market
  • NELCO outperformed the Communications industry which returned -26.7% over the past year.
  • NELCO outperformed the Market in India which returned -0.9% over the past year.
Price Volatility
NELCO
Industry
5yr Volatility vs Market

Value

 Is Nelco undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nelco to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nelco.

NSEI:NELCO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 17%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:NELCO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.082 (1 + (1- 35%) (10.5%))
1.104
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.104 * 8.6%)
17.05%

Discounted Cash Flow Calculation for NSEI:NELCO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nelco is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:NELCO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.05%)
2019 214.30 Est @ 15.07% 183.09
2020 241.76 Est @ 12.81% 176.47
2021 268.92 Est @ 11.23% 167.71
2022 296.17 Est @ 10.13% 157.80
2023 323.87 Est @ 9.36% 147.43
2024 352.42 Est @ 8.81% 137.06
2025 382.14 Est @ 8.43% 126.98
2026 413.36 Est @ 8.17% 117.34
2027 446.36 Est @ 7.98% 108.26
2028 481.42 Est @ 7.85% 99.76
Present value of next 10 years cash flows ₹1,421.89
NSEI:NELCO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹481.42 × (1 + 7.55%) ÷ (17.05% – 7.55%)
₹5,452.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹5,452.19 ÷ (1 + 17.05%)10
₹1,129.76
NSEI:NELCO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹1,421.89 + ₹1,129.76
₹2,551.66
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹2,551.66 / 22.82
₹111.82
NSEI:NELCO Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:NELCO represents 0.99721x of BSE:504112
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99721x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 111.82 x 0.99721
₹111.51
Value per share (INR) From above. ₹111.51
Current discount Discount to share price of ₹286.15
= -1 x (₹286.15 - ₹111.51) / ₹111.51
-156.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Nelco is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nelco's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nelco's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:NELCO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹9.77
BSE:504112 Share Price ** BSE (2019-05-22) in INR ₹286.95
India Communications Industry PE Ratio Median Figure of 13 Publicly-Listed Communications Companies 12.76x
India Market PE Ratio Median Figure of 2,756 Publicly-Listed Companies 15.41x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nelco.

NSEI:NELCO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:504112 Share Price ÷ EPS (both in INR)

= 286.95 ÷ 9.77

29.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nelco is overvalued based on earnings compared to the IN Communications industry average.
  • Nelco is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Nelco's expected growth come at a high price?
Raw Data
NSEI:NELCO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-8.5%per year
India Communications Industry PEG Ratio Median Figure of 5 Publicly-Listed Communications Companies 0.82x
India Market PEG Ratio Median Figure of 559 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nelco, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nelco's assets?
Raw Data
NSEI:NELCO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹24.45
BSE:504112 Share Price * BSE (2019-05-22) in INR ₹286.95
India Communications Industry PB Ratio Median Figure of 18 Publicly-Listed Communications Companies 1.41x
India Market PB Ratio Median Figure of 3,637 Publicly-Listed Companies 1.03x
NSEI:NELCO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:504112 Share Price ÷ Book Value per Share (both in INR)

= 286.95 ÷ 24.45

11.73x

* Primary Listing of Nelco.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nelco is overvalued based on assets compared to the IN Communications industry average.
X
Value checks
We assess Nelco's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Nelco has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Nelco, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-8.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nelco expected to grow at an attractive rate?
  • Nelco's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Nelco's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Unable to compare Nelco's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:NELCO Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:NELCO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -8.5%
India Communications Industry Earnings Growth Rate Market Cap Weighted Average 17%
India Communications Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
India Market Earnings Growth Rate Market Cap Weighted Average 17.1%
India Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:NELCO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:NELCO Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 1,910 223
2018-12-31 1,786 219
2018-09-30 1,705 213
2018-06-30 1,614 141
2018-03-31 1,496 322 121
2017-12-31 1,476 93
2017-09-30 1,453 86
2017-06-30 1,470 65
2017-03-31 1,437 379 63
2016-12-31 1,330 69
2016-09-30 1,319 54
2016-06-30 1,280 61

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nelco's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Nelco is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:NELCO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Nelco Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:NELCO Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 9.77
2018-12-31 9.59
2018-09-30 9.33
2018-06-30 6.16
2018-03-31 5.31
2017-12-31 4.05
2017-09-30 3.75
2017-06-30 2.84
2017-03-31 2.75
2016-12-31 3.02
2016-09-30 2.35
2016-06-30 2.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nelco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nelco's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nelco has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nelco performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nelco's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nelco has delivered over 20% year on year earnings growth in the past 5 years.
  • Nelco's 1-year earnings growth exceeds its 5-year average (84.1% vs 57.9%)
  • Nelco's earnings growth has exceeded the IN Communications industry average in the past year (84.1% vs 70.9%).
Earnings and Revenue History
Nelco's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nelco Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:NELCO Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,910.10 222.90
2018-12-31 1,785.50 218.60 26.80
2018-09-30 1,705.10 212.90 26.80
2018-06-30 1,614.40 140.50 26.80
2018-03-31 1,496.10 121.10 26.80
2017-12-31 1,475.50 92.50 33.80
2017-09-30 1,452.80 85.60 33.80
2017-06-30 1,469.90 64.80
2017-03-31 1,436.70 62.80 33.80
2016-12-31 1,329.70 69.19 27.77
2016-09-30 1,319.20 53.89 27.77
2016-06-30 1,280.10 61.09 27.77
2016-03-31 1,264.00 58.80 57.30
2015-12-31 1,374.30 -23.00
2015-09-30 1,367.90 -83.70
2015-06-30 1,399.97 -102.30 125.56
2015-03-31 1,345.97 -11.50 125.56
2014-12-31 1,327.97 -9.70 125.56
2014-09-30 1,232.67 94.80 12.10
2014-06-30 1,346.47 -11.06 126.86
2014-03-31 1,425.87 -116.66 126.76
2013-12-31 1,357.87 -128.26 122.56
2013-09-30 1,347.37 -166.26 126.86
2013-06-30 1,331.47 -145.02 366.77
2013-03-31 1,375.67 -103.32 364.07
2012-12-31 1,630.47 -61.32 357.77
2012-09-30 1,607.17 10.28 123.13

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Nelco has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Nelco used its assets more efficiently than the IN Communications industry average last year based on Return on Assets.
  • Nelco's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nelco's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nelco has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nelco's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nelco's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nelco's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Nelco's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nelco's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nelco Company Filings, last reported 1 month ago.

NSEI:NELCO Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 558.40 679.10 169.60
2018-12-31 476.40 539.10 154.60
2018-09-30 476.40 539.10 154.60
2018-06-30 337.70 500.20 44.50
2018-03-31 337.70 500.20 44.50
2017-12-31
2017-09-30
2017-06-30 218.70 564.20 105.30
2017-03-31 218.70 565.50 34.00
2016-12-31 155.10 864.60 225.50
2016-09-30 155.10 864.60 225.50
2016-06-30 96.80 849.94 52.73
2016-03-31 158.50 849.90 49.30
2015-12-31 74.90 755.90 25.60
2015-09-30 74.90 755.90 25.60
2015-06-30 75.00 779.40 23.30
2015-03-31 75.00 779.40 23.30
2014-12-31 169.02 664.47 49.05
2014-09-30 169.02 664.47 49.05
2014-06-30 106.30 816.70 61.60
2014-03-31 106.30 816.70 61.60
2013-12-31 159.08 809.11 39.65
2013-09-30 159.08 809.11 39.65
2013-06-30 223.00 747.70 34.00
2013-03-31 223.00 747.70 34.00
2012-12-31 325.34 890.92 51.38
2012-09-30 325.34 890.92 51.38
  • Nelco's level of debt (121.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (768.3% vs 121.6% today).
  • Debt is well covered by operating cash flow (47.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess Nelco's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nelco has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.52%
Current annual income from Nelco dividends.
If you bought ₹2,000 of Nelco shares you are expected to receive ₹10 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nelco's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.54%).
  • Nelco's dividend is below the markets top 25% of dividend payers in India (2.03%).
Upcoming dividend payment

Purchase Nelco before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:NELCO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Communications Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 1.5%
India Market Average Dividend Yield Market Cap Weighted Average of 1407 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:NELCO Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-04-30 1.500 0.529
2014-11-27 0.000 0.000
2014-07-30 0.000 0.000
2014-05-06 0.000 0.000
2014-01-31 0.000 0.000
2014-01-01 0.000 0.000
2013-01-02 0.500 1.317
2012-11-22 0.500 0.959
2011-12-29 0.000 0.000
2011-11-29 0.000 0.000
2010-11-23 1.000 1.395
2010-11-22 1.000 0.786
2010-02-01 0.600 0.514

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nelco has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Nelco only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Nelco's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Nelco's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nelco afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nelco has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pradip Nath
COMPENSATION ₹17,428,468
AGE 56
TENURE AS CEO 8.3 years
CEO Bio

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 Enterprise market in reputed IT & Telecom services companies ­ ICIM, Wipro, Tata Communications (VSNL) and Sify. He served as Senior Vice President of Sales at Tata Communications Limited. He served as Executive President of Enterprise Solutions business of Sify Technologies Limited since April 3, 2007. Prior to Sify, he was employed at VSNL or the rechristened Tata Communications between 2004 and 2007. He served as National Sales Head of Wipro Infotech and Senior Vice President of Enterprise Business of VSNL. He has been an Executive Director of Nelco Limited since June 13, 2012. He serves as a Director of Nelito Systems Limited. He serves as a Director of Tatanet Services Ltd. Mr. Nath holds a Masters in Management Studies from BITS Pilani.

CEO Compensation
  • Pradip's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Pradip's remuneration is higher than average for companies of similar size in India.
Management Team

Pradip Nath

TITLE
CEO, MD & Executive Director
COMPENSATION
₹17M
AGE
56
TENURE
8.3 yrs

Uday Banerjee

TITLE
CFO & Director
COMPENSATION
₹6M
AGE
56

Girish Kirkinde

TITLE
Head of Legal
COMPENSATION
₹4M
TENURE
2 yrs

Tari Sanjay

TITLE
Vice President
COMPENSATION
₹5M
AGE
53
Board of Directors Tenure

Average tenure and age of the Nelco board of directors in years:

5.7
Average Tenure
61
Average Age
  • The tenure for the Nelco board of directors is about average.
Board of Directors

Raju Bhinge

TITLE
Non Executive Chairman
COMPENSATION
₹570K
AGE
66
TENURE
5.9 yrs

Pradip Nath

TITLE
CEO, MD & Executive Director
COMPENSATION
₹17M
AGE
56
TENURE
6.9 yrs

Ratan Tata

TITLE
Chairman Emeritus
AGE
81

Uday Banerjee

TITLE
CFO & Director
COMPENSATION
₹6M
AGE
56
TENURE
15.1 yrs

Kailasam Raghuraman

TITLE
Independent Non Executive Director
COMPENSATION
₹840K
AGE
70
TENURE
5.7 yrs

Krishnan Ramachandran

TITLE
Independent Non Executive Director
COMPENSATION
₹690K
AGE
69
TENURE
5.6 yrs

Hema Hattangady

TITLE
Independent Non Executive Director
COMPENSATION
₹720K
AGE
55
TENURE
4.6 yrs

Rahul Shah

TITLE
Additional Director
AGE
51
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Nelco's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nelco has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Nelco Limited's (NSE:NELCO) High P/E Ratio A Problem For Investors?

We'll look at Nelco Limited's (NSE:NELCO) P/E ratio and reflect on what it tells us about the company's share price. … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Nelco: P/E of 27.01 = ₹263.9 ÷ ₹9.77 (Based on the year to March 2019.) Is A High P/E Ratio Good? … Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings.

Simply Wall St -

Does Nelco Limited's (NSE:NELCO) CEO Salary Reflect Performance?

How Does Pradip Nath's Compensation Compare With Similar Sized Companies. … According to our data, Nelco Limited has a market capitalization of ₹6.8b, and pays its CEO total annual compensation worth ₹17m. … We examined a group of similar sized companies, with market capitalizations of below ₹14b

Simply Wall St -

Could The Nelco Limited (NSE:NELCO) Ownership Structure Tell Us Something Useful?

Generally speaking, as a company grows, institutions will increase their ownership. … Nelco is not a large company by global standards. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Announcing: Nelco (NSE:NELCO) Stock Soared An Exciting 580% In The Last Five Years

Then look at the Nelco Limited (NSE:NELCO) share price. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

Simply Wall St -

Is Nelco Limited's (NSE:NELCO) 46% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.46 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should We Worry About Nelco Limited's (NSE:NELCO) P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Nelco Limited's (NSE:NELCO) P/E ratio and reflect on what it tells us about the company's share price. … Nelco has a price to earnings ratio of 24.26, based on the last twelve months.

Simply Wall St -

How Should Investors React To Nelco Limited's (NSE:NELCO) CEO Pay?

Pradip Nath has been the CEO of Nelco Limited (NSE:NELCO) since 2011. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Pradip Nath's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Nelco Limited (NSE:NELCO): The Return Story

and looking to gauge the potential return on investment in Nelco Limited (NSE:NELCO). … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Nelco’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Despite Its High P/E Ratio, Is Nelco Limited (NSE:NELCO) Still Undervalued?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Nelco has a price to earnings ratio of 26.37, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Worry About Nelco Limited's (NSE:NELCO) CEO Pay Check?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … We took a group of companies with market capitalizations below ₹14.7b, and calculated the median CEO compensation to be ₹2m. … Thus we can conclude that Pradip Nath receives more in total compensation than the median of a group of companies in the same market, and of similar size to Nelco Limited

Simply Wall St -

Company Info

Description

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.

Details
Name: Nelco Limited
NELCO
Exchange: NSEI
Founded: 1940
₹6,469,016,400
22,818,400
Website: http://www.nelco.in
Address: Nelco Limited
Plot No. EL-6, TTC Industrial Area,
MIDC, Electronic Zone,
Navi Mumbai,
Maharashtra, 400710,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 504112 Equity Shares Mumbai Stock Exchange IN INR 16. Jan 2002
NSEI NELCO Equity Shares National Stock Exchange of India IN INR 16. Jan 2002
Number of employees
Current staff
Staff numbers
0
Nelco employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 12:52
End of day share price update: 2019/05/22 00:00
Last earnings filing: 2019/04/27
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.