Now Reading: Nelco hits 52-week high, gains 63% in six months
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Nelco hits 52-week high, gains 63% in six months
Nelco, a Tata Group company providing satellite communication solutions, hit a 52-week high on Thursday. The stock has surged 62.60% over the past six months. Tata Power holds a 50.1% stake. For…
The Story in Brief
Nelco, a Tata Group company providing satellite communication solutions, hit a 52-week high on Thursday. The stock has surged 62.60% over the past six months. Tata Power holds a 50.1% stake. For Q1 FY27, Nelco reported a 30% year-on-year rise in consolidated net profit to Rs 2.34 crore, while total income grew 6.38% to Rs 80.17 crore, according to Business Today.
Technically, the stock trades above all key moving averages. Its 14-day RSI stands at 66.01, close to overbought levels. The company's consolidated P/E ratio is 613.11, with a price-to-book value of 20.06 and return on equity of 7.40%. The one-year beta is 1.5, indicating relatively high volatility. Nelco operates across key Satcom segments in India.
The Indian Opinion
The buzz around Tata group stocks often inflates expectations. Nelco’s P/E of 613 on a consolidated basis and RSI of 66 near overbought territory warn that the rally may be pricing in more than Q1 delivered, profit rose 30% on a low base of Rs 1.80 crore. With a beta of 1.5, volatility is high. Watch if the stock holds above its 200-day moving average or if Q2 revenue growth accelerates to justify the valuation.
Source: businesstoday.in
This story was synthesised by AI from the source linked above.
