NELCO

NSE: NELCO · IT - Hardware

52W Range₹500 ₹994

Snapshot

Unlock NELCO's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Nelco Limited is a Tata Group company specialising in VSAT satellite communication services and integrated security and surveillance solutions. The company provides end-to-end networking and connectivity infrastructure to diverse sectors including renewable energy, maritime, banking, and government institutions.

Business Model

The company generates revenue through the sale and rental of VSAT equipment, the provision of satellite connectivity services, and the maintenance of private hubs and hybrid networks. It also earns income from the design, installation, and long-term maintenance of integrated security and surveillance systems.

Growth Outlook

Growth is driven by the increasing demand for reliable satellite connectivity in remote industrial sectors and the expansion of critical infrastructure security projects. The company continues to leverage its position within the Tata ecosystem to secure enterprise and government contracts.

Key Risks

  • Technological Obsolescence. Rapid advancements in satellite communication technologies, such as LEO constellations, may render existing VSAT infrastructure less competitive.
  • Regulatory Dependency. The business is highly sensitive to changes in government telecommunications policies, licensing requirements, and spectrum allocation regulations.
  • Client Concentration. Heavy reliance on government and large enterprise contracts exposes the company to risks associated with project delays and budgetary constraints.
  • Intense Competition. The IT hardware and connectivity sector faces significant pricing pressure from both established telecom players and emerging satellite service providers.

Price

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Key Metrics

REVENUE

₹307 Cr

TTM · consolidated

+0.6%YoY

NET PROFIT

₹3 Cr

TTM · consolidated

-65.2%YoY

EPS

₹1.46

TTM · consolidated

-65.1%YoY

RETURN ON EQUITY

2.6%

TTM · consolidated

-5.0 ppYoY

P/E

593.1x

Q4 FY26 · consolidated

593.1 vs 151.5x5Y avg

EV/EBITDA

61.2x

Q4 FY26 · consolidated

61.2 vs 53.2x5Y avg

EBITDA MARGIN

10.7%

TTM · consolidated

-4.8 ppYoY

NET PROFIT MARGIN

1.4%

Q4 FY26 · consolidated

+7.4 ppYoY

DEBT TO EQUITY

0.5x

Q4 FY26 · consolidated

+0.16xYoY

Peers · IT - Hardware

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
NELCONELCO
1,264593.0861.220.6%10.7%2.6%6.7%-2.3%
Rashi PeripheralRPTECH
2,35218.0611.8014.9%3.2%15.6%26.1%+149.6%
D-Link IndiaDLINKINDIA
1,40515.6310.7413.1%9.5%21.5%29.1%-16.1%
Control PrintCONTROLPR
97523.7811.2313.4%18.8%10.3%17.4%-25.9%
TVS Elec.TVSELECT
723752.7240.005.7%5.5%1.3%6.6%+21.5%
DC InfotechDCI
48020.1114.3232.6%5.1%26.3%44.7%-0.1%

As of Q4 FY26

Financials