Nelco Limited (NELCO.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-67.1%

₹228.14

vs ₹692.50 price

Levered DCF

₹294.47

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

2.88

Grey zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	346.64×	213.65×	69.27×	59.48×	101.7×	34.81×	21.41×	29.41×
P/B	8.99×	15.92×	13.27×	11.29×	18.37×	5.68×	4.67×	11.74×
P/S	3.78×	6.68×	5.12×	3.77×	6.29×	1.9×	1.4×	3.43×
EV / EBITDA	52.99×	43.43×	15.14×	122.52×	30.76×	10.71×	7.87×	18.27×
Gross margin	12.0%	55.8%	74.5%	20.0%	20.9%	15.9%	65.6%	62.9%
Operating margin	1.5%	6.9%	27.1%	12.0%	10.3%	10.1%	15.0%	14.3%
Net margin	1.1%	3.1%	7.4%	6.3%	6.2%	5.5%	6.5%	11.7%
Current ratio	0.88×	1.1×	1.09×	1.2×	0.93×	0.74×	0.71×	0.71×
Debt / equity	0.57×	0.41×	0.46×	0.6×	0.91×	1.18×	1.84×	1.47×
Interest coverage	0.94×	3.79×	13.19×	3.24×	3.55×	2.41×	2.49×	3.71×
Dividend yield	0.2%	0.2%	0.3%	0.3%	0.2%	0.6%	1.3%	0.0%
Payout ratio	67.2%	50.6%	19.1%	20.5%	16.9%	22.0%	28.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	2.6%	7.5%	19.2%	19.0%	18.1%	16.3%	21.8%	39.9%
Return on invested capital	1.6%	5.6%	33.9%	16.0%	10.9%	10.5%	12.1%	22.9%
Return on assets	1.0%	3.3%	8.4%	7.6%	6.1%	5.2%	5.1%	9.4%
Free cash flow yield	-1.0%	0.2%	1.7%	2.8%	1.9%	10.4%	-4.8%	-4.9%
Earnings yield	0.3%	0.5%	1.4%	1.7%	1.0%	2.9%	4.7%	3.4%
Enterprise value	₹12.1B	₹20.7B	₹16.7B	₹12.3B	₹17B	₹5.1B	₹4.2B	₹7.3B
Net debt / EBITDA	2.3×	0.81×	0.32×	4.68×	1.19×	1.69×	2.04×	1.92×
Cash conversion cycle (days)	117	84	64	70	47	61	4	-17