Realty stock which is a diversified conglomerate based in Mumbai has been selected as the highest bidder by National Highways Logistics Management Limited (NHLML) for Phase II of a prestigious project worth Rs. 350 Cr.
Price Action
Nesco Ltd. currently trading at Rs. 1032.95 increased 5 percent from its previous close of Rs. 995.25. The shares created an intraday high of Rs. 1048 within the first trading hour on Tuesday. The company is currently priced at just 52 points lower than its 52 week high.
What Happened
NESCO Limited has secured a work order from National Highways Logistics Management Limited (NHLML) to develop, operate, and maintain wayside amenities along the South Zone of the Bengaluru-Chennai Expressway Corridor (Phase II).
The project spans three sites and was officially confirmed on January 6, 2025, at 1:16 PM. The lease agreement is set for 30 years, with an option to extend for another 30 years, and the development is to be completed within 10 months of the appointed date.
The estimated annualised revenue from 3 sites for 4 years of operations is around Rs. 350 cr and the total cost the Company has to incur is estimated at Rs. 225 crores. This new contract aligns with Nesco’s broader strategy to diversify into infrastructure-related opportunities.
About the Company
Founded in 1939, Nesco Limited is a conglomerate with interests spanning exhibitions, real estate, and infrastructure development. With a reputation for quality and innovation, Nesco continues to contribute to India’s growth through its dynamic business operations.
The company’s subsidiaries include Nesco realty, Bombay Exhibition Centre (BHC), Nesco Foods, Nesco Events and Nesco Engineering.
Over 100+ exhibitions were successfully scheduled for Bombay Exhibition Center (“BEC”) and over 25+ mesmerising events were hosted by Nesco Events this year. The occupancy rate for the FY 2023-24 for itsTower 3 and Tower 4 tech park stands impressively high at around 98 percent.
Financials
The company’s revenue from operations grew by 14 percent from Rs. 197 cr to Rs. 225 cr during Q2FY24-25, accompanied by profits of Rs. 88 cr to Rs. 107 cr.
The EBITDA margin also has shown consistent growth from Rs 411 cr in FY23 to Rs 531 cr in FY24, increasing by 29 percent.
Recent Updates
In December of last year, the company had secured another contract from National Highways Logistics Management Limited worth Rs 300 Cr. This project focused on the development, operation, and maintenance of wayside amenities along the Hyderabad-Visakhapatnam Expressway, specifically in the Khammam-Devarapalle section.
Written by Shwetha Sairam
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