NELCO Limited (NELCO)

Information Technology · IT - Hardware · NSE · Updated 15 July 2026

₹862.55 ↓ 1.82% (1Y)

🎯 Key Takeaways

NELCO Limited is in a mature phase with signs of stabilization in its core IT hardware business, marked by consistent profitability and governance discipline. The company has demonstrated resilience through cyclical market conditions, maintaining healthy margins and returning capital to shareholders via dividends.
Revenue declined 2.2% QoQ to ₹81 in Q3FY25.
⚠️ Margin compression in recent quarters may reflect rising input costs or pricing pressures in the IT hardware segment, which management has not address

Market Cap

₹1,533

P/E Ratio

77.8

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

NELCO Limited is in a mature phase with signs of stabilization in its core IT hardware business, marked by consistent profitability and governance discipline. The company has demonstrated resilience through cyclical market conditions, maintaining healthy margins and returning capital to shareholders via dividends. However, its elevated P/E ratio of 77.8 suggests limited near-term growth expectations, placing it in a consolidation and efficiency phase rather than aggressive expansion.

📰 What's Happening

The most recent developments include the approval of audited financial statements and a dividend declaration at the 83rd Annual General Meeting on 24 June 2026, where Chairman A.S. Lakshminarayanan was reappointed and the cost auditor’s remuneration was ratified. Shareholders also approved material related party transactions with Tata Capital Limited and enhanced borrowing limits via e-voting on 13 June 2026. These actions support capital flexibility and governance continuity, with no forward guidance provided on future performance or strategic initiatives.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	82	79	77	83	82	74	83	81
Operating Profit	18	15	14	17	15	12	12	14
OPM %	20.5%	18.3%	18.1%	19.6%	18.0%	16.6%	13.1%	15.1%
Net Profit	6	6	6	6	6	5	4	5
EPS	₹2.48	₹2.51	₹2.49	₹2.69	₹2.67	₹2.00	₹1.80	₹2.17

NELCO has shown stable revenue and operating performance over the past eight quarters, with quarterly revenue hovering around ₹77–83 crore and operating margins consistently above 13%. Profitability peaked in Q4FY24 and Q3FY24 with OPM of 18–20%, though recent quarters (Q1–Q3FY25) reflect slight margin compression to 13–15.1%, accompanied by a dip in net profit and EPS. This trend suggests possible investment in operations or pricing pressures, though absolute profitability remains intact and earnings are not in decline.

🔮 Management Outlook & What's Next

Management provided no forward guidance or commentary on future performance in the latest filings, including the 24 June 2026 AGM summary. There was no discussion of growth targets, capital allocation plans beyond the approved related party transactions, or expectations for margin trajectory. The absence of forward-looking statements indicates a focus on governance and compliance rather than strategic signaling about future business momentum.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — IT - Hardware

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
GNG Electronics Limited	4,779	36.2	—	—	—
Moschip Technologies Limited	3,921	108.7	—	—	—
Rashi Peripherals Limited	3,345	16.4	—	—	—
D-Link (India) Limited	1,715	16.8	—	—	—
NELCO Limited	1,533	77.8	—	—	—
Ivalue Infosolutions Limited	1,345	—	—	—	—
Control Print Limited	1,008	22.0	—	—	—
TVS Electronics Limited	852	—	—	—	—
HCL Infosystems Limited	385	-16.7	—	—	—
Smartlink Holdings Limited	169	14.8	—	—	—

🔗 Peer Stock Analyses

EBGNG MOSCHIP RPTECH DLINKINDIA IVALUE

⚠️ Risk Factors

1. Margin compression in recent quarters may reflect rising input costs or pricing pressures in the IT hardware segment, which management has not addressed with corrective guidance. 2. Heavy reliance on the Tata Group ecosystem, particularly through related party transactions with Tata Capital, creates concentration risk if business relationships or project pipelines shift. 3. The company's high P/E multiple implies market expectations of future growth that may not be supported by current operational trends without new catalysts.

📋 Recent Filings

🧠 Analyst's Read

NELCO appears to be a stable, dividend-paying entity with solid governance and consistent profitability, but lacks near-term catalysts for earnings acceleration. Investors should monitor margin trends and any future disclosures on strategic initiatives or market expansion, as the current valuation reflects limited growth visibility despite operational resilience.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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