Fundamentals

NESCO LIMITED

Ticker : 505355
BUY: Rs. 558.30
Target: Rs. 620



NESCO Limited is a tool manufacturing company. The company operates in two divisions: Bombay Exhibition Centre/realty division and engineering division. The company’s engineering products include forging hammers and presses, blowroom lines and high production cards for the textile industry, etc. On the financial front, the company’s revenues for Q4FY19 stood at Rs 93.51 crore, up by 23 per cent from Rs 75.54 crore posted in Q4FY18. The PBIDT expanded by 23 per cent to Rs 65.24 crore in Q4FY19 from Rs 52.94 crore posted in Q4FY18. PAT witnessed a jump of 20 per cent YoY to Rs 51.36 crore in Q4FY19. NESCO has received approval for scheme of amalgamation of Nesco Hospitality, a wholly-owned subsidiary of the company engaged in the business of food kitchens, etc. We recommend a BUY.