Nelco hits 10-year high; surges 75% in 14 days post Q3 results

The stock rallied 7% to Rs 189 on the BSE in intra-day trade, its highest level since January 17, 2008.

Nelco hit an over 10-year high of Rs 189, up 7% on the BSE, extending its rally after the company announced its October-December (Q3FY18) results. The stock was trading at its highest level since January 17, 2008.

Since February 2, 2018, in past 14 trading days, it appreciated by 75%, as compared to 1% rise in the S&P BSE Sensex.

Nelco is a part of the Tata Group focused on helping its enterprise & government customers unlock potential by offering solutions in the areas of Integrated Security & Surveillance, VSAT connectivity (Tatanet VSAT), Managed Services, Satcom Projects and Meteorological Solutions.

The company had reported 50% year on year (YoY) growth in its consolidated net profit at Rs 34 million in Q3FY18. Total operational income grew 2% at Rs 372 billion on YoY basis. Earnings before interest, tax, depreciation and amortised expenses (Ebitda) margin improved to 22.58% from 17.95%.

For the first nine months (April-December) of FY18, Nelco posted net profit of Rs 83 million against Rs 53 million the same period last year. It had profit of Rs 63 million during the entire previous financial year 2017.

At 11:17 am; the stock was trading 5% higher at Rs 185 against 0.07% decline in the benchmark index. The trading volumes on the counter nearly doubled with a combined 1.66 million shares changed hands on the BSE and NSE so far.