Multibagger alert: This small-cap Tata Group company delivered nearly 4x returns in the last two years!

Multibagger alert: This small-cap Tata Group company delivered nearly 4x returns in the last two years!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-10-10T14:19:05+05:30

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 4.86 lakh today. 

Nelco Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 191.65 on 08 October 2020 to Rs 931.90 on 07 October 2022, an increase of 386% in the two-year holding period. 

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 4.86 lakh today.

Established in 1940, Nelco Ltd is a part of the USD 116 billion Tata Group. Nelco operates in the areas of VSAT connectivity, Satcom Projects and Integrated Security & Surveillance Solutions. It offers a range of innovative and customized solutions for businesses and government institutions.

The company provides consulting, customization, system integration, end-to-end management, as well as robust infrastructure and processes. It is a preferred partner for the Government, Defense and Enterprise sectors when it comes to security and surveillance in India.

Looking at the shareholding pattern, as of 30 June 2022, Tata Power Company Ltd held a majority stake of 50.04% in the company. In the last two years, the company’s consolidated topline increased by 18.8% to Rs 265 crore. Similarly, the bottom line increased by 11.82% to Rs 16.08 crore.

The company is currently trading at a TTM PE of 133.75x, as against the industry PE of 47.72x. In FY22, the company delivered an ROE & ROCE of 19.48% and 21.43%, respectively. Today, the scrip opened at Rs 947 and has touched a high and low of Rs 958.70 and Rs 926.95, respectively. So far 17,131 shares have been traded on the bourses.

At 12.33 pm, the shares of Nelco Ltd were trading at Rs 944.50, a decrease of 1.81% from the previous closing price of Rs 961.90 on BSE. The stock has a 52-week high and low of Rs 1,089.95 and Rs 515.20, respectively on BSE.

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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