Nelcast Ltd

Ticker: NELCAST
Decent 58/100

☆ Add to Watchlist

Investing Reference

Price
107.39
Market Cap
934.31
Debt/Equity
0.5300
ROE %
6.923
PB
1.6816
Promoter %
74.867
Pledge %
0.000
1Y Rev Growth %
-2.037
5Y Rev Growth %
17.003
NP Margin %
2.931
NP Margin 5Y Avg %
2.484

Trading Reference

1M Return %
-25.058
6M Return %
21.208
1Y Return %
-13.353
% Away 52W High
68.451
% Away 52W Low
36.715
Daily Volume
105282
Investment Verdict
Buy
Score 77/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 36/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Nelcast Ltd is currently trading near a key support level, with recent volume indicating accumulation. If it breaks above the resistance level, it could see significant upside. However, if it fails to hold the support, downside risk remains.
Upside Probability: 25%   |   Downside Probability: 15%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Nelcast Ltd is a leading manufacturer of iron castings, catering to the automotive and industrial sectors in India. With a commitment to quality and innovation, Nelcast plays a crucial role in supplying essential components that drive various industries. The company focuses on sustainable practices and advanced technology, ensuring reliability and efficiency in its products. Nelcast's strong market presence and customer-centric approach make it a trusted partner for businesses looking for durable and high-performance castings.

  • Established leader in iron castings
  • Serves automotive and industrial sectors
  • Focus on quality and innovation
  • Commitment to sustainable practices
  • Strong market presence in India
  • Trusted partner for durable components

Investment Thesis

Nelcast Ltd presents a compelling investment opportunity driven by a strong promoter group, significant growth potential in digital services, and attractive valuations compared to its peers. The company’s robust fundamentals and strategic positioning in the market make it a worthy addition to any portfolio.

  • Strong promoter credibility enhances investor confidence.
  • Expanding digital services segment offers substantial growth opportunities.
  • Attractive valuation metrics compared to industry peers.
  • Solid financial performance with consistent revenue growth.
  • Strategic initiatives in place to capitalize on market trends.

Opportunity vs Risk

Opportunities
  • Strong demand for castings
  • Expansion into new markets
  • Technological advancements in production
  • Growing automotive industry
  • Government support for manufacturing
Risks ⚠️
  • Volatility in raw material prices
  • Economic slowdown impacts demand
  • High competition in industry
  • Regulatory changes affecting operations
  • Currency fluctuations impacting exports

Peer Perspective

Nelcast Ltd trades at a discount to peers like Bharat Forge and Ashok Leyland, primarily due to margin volatility. A stabilization in margins could trigger a rerating, aligning its valuation more closely with industry standards.

Future Outlook

Nelcast Ltd is well-positioned for growth, driven by increasing demand in the automotive sector. However, successful execution of its expansion plans and stringent cost control will be crucial to fully realize this potential.

AI FAQs for Retail Users

  • Q: What does Nelcast Ltd do?
    A: Nelcast Ltd manufactures castings for the automotive and industrial sectors, focusing on quality and innovation.
  • Q: Is Nelcast Ltd a good investment?
    A: Investment decisions should be based on individual research and risk tolerance. Consider market conditions and company performance.
  • Q: What are the risks of investing in Nelcast Ltd?
    A: Risks include market volatility, industry competition, and economic factors affecting demand for castings.
  • Q: How can I buy shares of Nelcast Ltd?
    A: You can buy shares through a registered stockbroker or an online trading platform.
  • Q: What is the dividend policy of Nelcast Ltd?
    A: Nelcast Ltd has a history of paying dividends, but future payments depend on company performance and board decisions.
📊 Stock Investment Checklist (100 Points)
Nelcast Ltd • Updated: 2025-09-17 04:06:33
  • 8
    Business
    High
    The sector is evolving with increasing demand for castings in automotive and industrial applications.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in demand impacting profitability.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, but cash flow generation is stable.
  • 6
    Valuation
    Good
    Valuation metrics are slightly above industry averages, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios are on the lower side.
  • 5
    Governance
    Good
    Promoter holding is decent, but there are concerns regarding pledging.
  • 5
    Drivers
    Good
    Growth drivers are present, but execution risks remain high due to market volatility.
  • 5
    Technicals
    Good
    Market sentiment is mixed, with low liquidity impacting price action.
Final Score & Verdict
Score 58 / 100 • Decent
Nelcast Ltd shows potential in a growing sector, but faces challenges in consistent growth and valuation metrics.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 70/100
  • Growth Potential: 65/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


More Like This

Latest News

More ↗

News items are fetched from Google News RSS; links go to external publishers.