Nesco Limited

Industrials — Conglomerates · NSE

₹1,045.90−₹2.30 (−0.22%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Nesco Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nesco Limited builds an IT park in India and internationally. The company operates through Realty, Bombay Exhibition Center, Industrial Capital Goods Division, Foods, and Way Side Amenities segments.

IndustryConglomerates

SectorIndustrials

Employees349

Annual revenue₹932 Cr

How does it make money?

Turns over ₹932 Cr a year. Of every ₹100 of sales, about ₹44 reaches shareholders as profit, with ₹62 left at the operating level before interest, tax and depreciation. Each of its 349 employees supports ₹2.67 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.67 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 14.5% and earnings to grow about 4.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.5%

Est. earnings growth+4.3%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +71% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+71%

Margin effect-17%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.55 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

17.7x

3Y Median

20.3x

40 monthly readings · mean 20.4x · range 15.7x–26.8x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 13% below its 3y median of 20.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 80% below the peer median of 88.8x.

vs. its own history

Fair

20.3x median over 40 months · -13%

vs. sector peers

Cheap

88.8x median of 3 peers · -80%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.1x

PEG

1.43

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 17.6% to 15.4% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 66254% over 3 years, from ₹0 Cr to ₹272 Cr.
🔴High leverageFinancial
Debt/Equity of 9.07x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.1 points, from 74.5% to 62.4%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 74.5% to 62.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 9.07x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 19.5% CAGR
Latest reported year was 15.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 60%✓ 62.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹66 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹7,369 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.46x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹59.13

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

15.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.07x

High

High leverage

Revenue Growth (YoY)

15.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4.0%

Modest

Slow profit growth

Dividend Yield

0.67%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹66 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.6x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

52.6%

Good

Healthy core-business profitability

Net Margin

39.1%

Good

Strong bottom-line conversion

Current Ratio

2.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1054.2 / 1053.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹546 Cr	₹678 Cr	₹732 Cr	₹932 Cr	+19.5%
EBITDA	₹407 Cr	₹494 Cr	₹537 Cr	₹582 Cr	+12.7%
EBITDA Margin	74.5%	72.9%	73.3%	62.4%	—
PAT (Net Profit)	₹291 Cr	₹363 Cr	₹375 Cr	₹413 Cr	+12.4%
EPS	₹41.25	₹51.49	₹53.25	₹58.58	+12.4%
ROE	14.8%	15.8%	14.3%	13.8%	—
ROCE	17.6%	19.1%	17.4%	15.4%	—
Total Debt	₹0 Cr	₹0 Cr	₹1 Cr	₹272 Cr	+772.2%
Free Cash Flow	₹284 Cr	₹272 Cr	-₹435 Cr	₹66 Cr	-38.7%

🟢 Revenue has grown at 19.5% a year over 3 years.

🟢 EBITDA has grown at 12.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 74.5% to 62.4% over 3 years (-12.1 pts).

🟢 PAT (Net Profit) has grown at 12.4% a year over 3 years.

🟢 EPS has grown at 12.4% a year over 3 years.

🔴 ROE has fallen from 14.8% to 13.8% over 3 years (-1.0 pts).

🔴 ROCE has fallen from 17.6% to 15.4% over 3 years (-2.2 pts).

🔴 Total Debt has grown at 772.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 38.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,689 Cr

Total Liabilities

₹693 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹388 Cr

Capex

-₹322 Cr

Shareholding (proxy)

Institutional Holding

5.0%

Insider Holding

70.2%

Corporate Actions

Dividend Rate

₹7

Ex-Dividend Date

20 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,193

+14.1% vs CMP

Target Range

₹1,193 – ₹1,193

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive3 mixed2 general

Nesco (NSEI:NESCO) - Stock Analysis

Simply Wall Street, 16 Oct

Nesco Share Price Target 2027: Base and Bull Case

Univest, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

NESCO Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Nesco Q1 Result: Net Profit Rises 4% YoY, Revenue Up 10%; Stock Falls Over 2%

NDTV Profit, 27 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Nesco shares slip over 3% post mixed Q1 results — EBITDA, margin under pressure

CNBC TV18, 27 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Benign Growth For Nesco Limited (NSE:NESCO) Underpins Its Share Price

Simply Wall Street, 10 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑