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Hi Friends,


I have shortlisted a debt free growth companies which is looking good on charts and risk reward is favorable currently, I will advice buying it only if it crosses specified levels with good volumes. Let's have a deeper dive into it :

Company Background


Nesco Ltd. (formerly New Standard Engineering Co Ltd.) was incorporated on 15 April 1946. The Company is engaged in licensing premises in IT park building and providing related services licensing premises in its exhibition and convention incubation centre and providing related services to the clients manufacturing of machines and capital equipment and hospitality and catering services.Nesco Ltd is a diversified Indian-based company with business interests in the engineering realty and services sectors. The company's manufacturing group includes Nesco Engineering and services groups include Bombay Convention & Exhibition Center and NESCO Realty. The company manufactures engineering products including forging hammers and presses blowroom lines and high production cards for textile industry and sucker rod pumps for onshore oil recovery. (Source : Business Standard).



Fundamentals
  1. For second quarter ended 30 September 2019, Nesco’s income increased by 28% to Rs. 134.64 crores from Rs. 105.13 crores in Q2FY18-19. Profit before tax increased by 29% to Rs. 86.07 crores from Rs. 66.67 crores in Q2FY18-19.  
  2. For half year ended 30 September 2019, Nesco’s total income increased by 16% to Rs. 214.17 crores from Rs. 183.77 crores; and profit before tax was Rs. 131.89 crores as on 30 September 2019 compared to Rs 112.82 crores in the previous half year, growth of 17%. 
  3. The Company continues to be debt-free and has completed construction of IT Building 04 in Nesco IT Park and Bombay Exhibition Centre.
  4. According to a recent news article, Nesco has leased additional 6 lakh sq ft office in “Nesco Tower 4” out of one million sq ft in October. This is expected to increase lease rental significantly. (Source : https://www.moneycontrol.com/news/business/nesco-leases-6-lakh-sq-ft-office-space-to-corporates-in-mumbai-4587331.html)
Technicals

The Stock is well above its 200,100 and 50 DMA, with 50 DMA above 100 & 200 DMA indicating it is in uptrend. After hitting a high of 650 in Jan 18 it has consolidated well in a cup like pattern until last week when it had breached those levels. 600 should act as a good support from now. I would make an entry once it breaches 640 again with good volumes.


Both Investors and traders can look of buying around CMP 645 with a strict SL of 5%.

Thank You !!!


Note: The Above is just a information available in public domain and therefore, should not be taken as a research report.


Registration status with SEBI:  I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.


Disclosure : Currently I do not hold this stock in my portfolio, any future entry made will be updated on the blog timely.


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