NELCO Intrinsic Value

NELCO • Information Technology
Current Stock Price
₹560.50
Primary Intrinsic Value
₹168.15
Market Cap
₹1289 Cr
-70.0% Downside
Median Value
₹168.15
Value Range
₹112 - ₹280
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

NELCO Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹168.15 ₹134.52 - ₹201.78 -70.0% EPS: ₹2.84, Sector P/E: 12x
Book Value Method asset ₹112.10 ₹100.89 - ₹123.31 -80.0% Book Value/Share: ₹55.65, P/B: 1.0x
Revenue Multiple Method revenue ₹168.15 ₹151.34 - ₹184.97 -70.0% Revenue/Share: ₹132.17, P/S: 0.8x
EBITDA Multiple Method earnings ₹224.20 ₹201.78 - ₹246.62 -60.0% EBITDA: ₹36.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹224.20 ₹179.36 - ₹269.04 -60.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹168.15 ₹151.34 - ₹184.97 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹168.15 ₹151.34 - ₹184.97 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹280.25 ₹252.22 - ₹308.28 -50.0% ROE: 6.2%, P/E Multiple: 10x
Graham Defensive Method conservative ₹168.15 ₹151.34 - ₹184.97 -70.0% EPS: ₹2.84, BVPS: ₹55.65
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

NELCO Intrinsic Value Analysis

What is the intrinsic value of NELCO?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of NELCO (NELCO) is ₹168.15 (median value). With the current market price of ₹560.50, this represents a -70.0% variance from our estimated fair value.

The valuation range spans from ₹112.10 to ₹280.25, indicating ₹112.10 - ₹280.25.

Is NELCO undervalued or overvalued?

Based on our multi-method analysis, NELCO (NELCO) appears to be trading above calculated value by approximately 70.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 23.86 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 6.2% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 10.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.06x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹20 Cr ₹12 Cr Positive Free Cash Flow 8/10
March 2024 ₹45 Cr ₹36 Cr Positive Free Cash Flow 8/10
March 2023 ₹58 Cr ₹46 Cr Positive Free Cash Flow 8/10
March 2022 ₹51 Cr ₹42 Cr Positive Free Cash Flow 8/10
March 2021 ₹54 Cr ₹50 Cr Positive Free Cash Flow 8/10