Nelcast

Market Cap: Micro Cap
Industry: Castings/Forgings
ISIN: INE189I01024
NSEID: NELCAST
BSEID: 532864

INR

86.00

0.87 (1.02%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 18.4 k

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Synergy Green

Ramkrishna Forg.

Uni Abex Alloy

Sona BLW Precis.

Pradeep Metals

Bharat Forge

Electrost.Cast.

CIE Automotive

Inv.& Prec.Cast.

Nelcast

Captain Techno.

Why is Nelcast Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.20%

Poor long term growth as Net Sales has grown by an annual rate of 14.61% and Operating profit at 9.63% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 1.63

With a fall in Operating Profit of -11.71%, the company declared Very Negative results in Dec 24

The company has declared negative results for the last 2 consecutive quarters
PBT LESS OI(Q) At Rs 2.36 cr has Fallen at -62.9 %
PAT(Q) At Rs 5.98 cr has Fallen at -22.5 %
ROCE(HY) Lowest at 8.52 %

Stock is technically in a Bearish range

The technical trend has deteriorated from Mildly Bearish on 14-Feb-25 and has generated -18.87% returns since then
Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Castings/Forgings)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Nelcast for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nelcast

-44.39%

-1.02

43.44%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.61%

EBIT Growth (5y)

9.63%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

4.48

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.29

Tax Ratio

22.20%

Dividend Payout Ratio

6.40%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

6.11%

ROE (avg)

5.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.39

EV to EBIT

19.56

EV to EBITDA

13.21

EV to Capital Employed

1.27

EV to Sales

0.81

PEG Ratio

Dividend Yield

0.47%

ROCE (Latest)

7.52%

ROE (Latest)

5.79%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.58 times

-21What is not working for the Company

PBT LESS OI(Q)

At Rs 2.36 cr has Fallen at -62.9 %

PAT(Q)

At Rs 5.98 cr has Fallen at -22.5 %

ROCE(HY)

Lowest at 8.52 %

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.97 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.81 times

NET SALES(Q)

At Rs 291.41 cr has Fallen at -6.5 %

NON-OPERATING INCOME(Q)

is 70.57 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for Nelcast

Debt-Equity Ratio - Half Yearly

Lowest at 0.58 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Nelcast

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.36 cr has Fallen at -62.9 %

over average PBT of the previous four quarters of Rs 6.36 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 5.98 cr has Fallen at -22.5 %

over average PAT of the previous four quarters of Rs 7.72 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 1.97 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

Lowest at Rs 291.41 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 291.41 cr has Fallen at -6.5 %

over average Net Sales of the previous four quarters of Rs 311.59 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 70.57 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 3.81 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 5.66 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income