Nelcast Limited (NSE: NELCAST), India’s largest jobbing foundry in gray iron casting manufacturing, has released its December quarter results. Profits for the company have increased by 379 percent compared to last year.
However, there has been a decline in the company’s income during the quarter as compared to a year ago. EBITDA as well as margin have both increased on an annual basis.
However, both have fallen on a quarter-to-quarter basis. The company’s stock closed with a decline of 1.7 percent in yesterday’s trading. On Tuesday, the share is trading at Rs 165.75.
How Was The Quarterly Results?
The company’s profit in the December quarter was Rs 25.5 crore, an increase of 379 percent compared to last year. The figure has increased by 53.4 percent compared to the September quarter.
Comparing the third quarter of last year, the total revenue of the company decreased from Rs 333.7 to Rs 323 Crores.
There has been a decline of 3.2 percent on a year-on-year basis and 10.9 percent as compared to the September quarter.
EBITDA has increased by 32.5 percent on a year-on-year basis and has increased from Rs 21.3 crore to Rs 28.2 crore. EBITDA has declined by 21.7 percent compared to the second quarter.
EBITDA margin in the December quarter was 8.7 percent. The margin was 9.9 percent for the quarter ending September and 6.5 percent for the third quarter last year.
The company has predicted with the results that the next financial year will see better growth due to the boom in the medium and heavy commercial vehicle segment and better export demand, while new product launches and strong order books will keep the export sales strong.
What Does The Company Do?
The company produces gray and ductal castings for the medium and heavy commercial vehicle and tractor industries. Exports account for 25-30% of total company income.
The company also supplies base plates and brake discs to metro rail and railways. The company’s stock remains a source of good returns for its investors. The stock currently stands at 165.75. The stock traded below Rs 115 a year ago.
About Nelcast Limited Company
Nelcast Limited, a small manufacturer of iron casts was established in 1985. Its modest production capacity is 1,000 Metric Tons/Year.
Nelcast is a market leader with a production of 118,000 Metric tons/year. Nelcast products are used in the automotive, tractor construction, mining, and railways sectors, as well as general engineering.
Nelcast, the largest foundry in India that produces grey and ductile iron castings, is India’s largest jobbing company. Nelcast manufactures at Gudur, Pedapariya, and Ponneri (in Tamil Nadu) in Andhra Pradesh.
Nelcast, despite its high level of certification documented, continues to nurture its fundamental principles of maintaining consistently high standards of quality and precision.
Fundamental Analysis of Nelcast Limited
| Market Cap | ₹ 1,440 Cr. |
| Current Price | ₹ 165.75 |
| 52-wk High | ₹ 194 |
| 52-wk Low | ₹ 85.5 |
| Stock P/E | 36.3 |
| Book Value | ₹ 56.1 |
| Dividend | 0.24 % |
| ROCE | 9.59 % |
| ROE | 6.60 % |
| Face Value | ₹ 2.00 |
| P/B Value | 2.93 |
| OPM | 7.44 % |
| EPS | ₹ 6.19 |
| Debt | ₹ 292 Cr. |
| Debt to Equity | 0.60 |
Nelcast Limited Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹172 | ₹195 |
| 2025 | ₹200 | ₹212 |
| 2026 | ₹224 | ₹245 |
| 2027 | ₹250 | ₹260 |
| 2028 | ₹262 | ₹289 |
| 2029 | ₹320 | ₹330 |
| 2030 | ₹350 | ₹370 |
Nelcast Limited Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 74.87% |
| Mar 2023 | 74.87% |
| June 2023 | 74.87% |
| Sept 2023 | 74.87% |
| Dec 2023 | 74.87% |
| FII Holding | |
| Dec 2022 | 0.85% |
| Mar 2023 | 0.88% |
| June 2023 | 0.79% |
| Sept 2023 | 1.05% |
| Dec 2023 | 0.88% |
| DII Holding | |
| Dec 2022 | 0.64% |
| Mar 2023 | 0.58% |
| June 2023 | 0.58% |
| Sept 2023 | 0.58% |
| Dec 2023 | 0.48% |
| Public Holding | |
| Dec 2022 | 23.64% |
| Mar 2023 | 23.66% |
| June 2023 | 23.74% |
| Sept 2023 | 23.49% |
| Dec 2023 | 23.78% |
Nelcast Limited Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 856 Cr |
| 2020 | ₹ 567 Cr |
| 2021 | ₹ 615 Cr |
| 2022 | ₹ 927 Cr |
| 2023 | ₹1285 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 38 Cr |
| 2020 | ₹ 36 Cr |
| 2021 | ₹ 9 Cr |
| 2022 | ₹ 14 Cr |
| 2023 | ₹ 54 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.43 |
| 2020 | 0.5 |
| 2021 | 0.42 |
| 2022 | 0.63 |
| 2023 | 0.65 |
Last 10 Years’ Profit Growth:
| 10 Years: | 8% |
| 5 Years: | -5% |
| 3 Years: | -6% |
| Current Year: | 24% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 8% |
| 5 Years: | 6% |
| 3 Years: | 4% |
| Last Year: | 7% |
Sales Growth Over 10 Years:
| 10 Years: | 10% |
| 5 Years: | 11% |
| 3 Years: | 31% |
| Current Year: | 5% |
Conclusion
This article is a complete guide about Nelcast Limited Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s prospects and growth potential.
This information will help you in your further investment.
If you are new to our website and want to get all the latest updates related to the stock market, join us on Telegram Group.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible.
Also Read: Renewable Energy Share Target 45 GW Capacity By 2030; Target ₹2400 And ₹2650
Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We provide timely updates about the stock market and financial products to help you make better investment choices. Do your research before any investment.
