Capital Goods · NSE/BSE: NELCAST

Nelcast Limited

Castings & Forgings
Market Cap ₹0.01L Cr
Verdict: Average

Quality Scores

Business Compounding
58/100
Compounder Quality
64/100
Management Credibility
80/100
Governance
85/100
Cash Flow Quality
82/100

AI Summary

Nelcast Limited is India's largest jobbing foundry specializing in Ductile and Grey Iron Castings, primarily serving the Medium & Heavy Commercial Vehicle (M&HCV) and tractor segments. Over the last decade, the business has demonstrated resilience in a cyclical industry, scaling revenue from ₹545 Cr to ₹1,328 Cr, representing a steady growth trajectory despite end-market fluctuations. While the company maintains a dominant market position for complex components like axle housings and transmission cases, its business quality is tempered by thin operating margins (averaging 7-9%) and a…

Top Opportunities

  • Largest jobbing foundry in India for Ductile & Grey Iron Castings
  • Strong promoter skin in the game (74.87% holding)
  • Continuous debt reduction since Mar 2024 peak

Top Risks

  • High sector concentration in M&HCV and Tractors
  • Vulnerability to raw material (pig iron/scrap) price volatility
  • Single-digit long-term ROE of 7-8%

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