Shares of this small-cap stock jumped approximately 5 percent in Wednesday’s trading session after the company announced financial results for Q3FY23-24, i.e., for the quarter ended December 2023.
With a market capitalization of Rs 6,178.63 crores, the stocks of Nesco Limited opened their trading hour on Wednesday at Rs 850 and closed the session at Rs 876.90, gaining approximately 5 percent as compared to the previous closing levels of Rs 836.20 apiece.
Such bullish stock price movements are observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the December 2023 quarter.
Sequentially, the company reported an increase in both the prime business indicators, viz, operating revenues as well as after-tax profits with the former increasing marginally from Rs 175 crores during Q2FY23-24 to Rs 178 crores during Q3FY23-24, and the latter, keeping the timeframe the same, rising from Rs 88 crores to Rs 94 crores.
Moreover, the company, on a YoY basis too, reported a jump in the metrics mentioned above with the operating revenues shifting from Rs 143 crores during Q3FY22-23 to Rs 178 crores during Q3FY23-24, and the after-tax profits, during the same period, rising from Rs 70 crores to Rs 94 crores representing an increase of around 35 percent.
Historically, the company reported an increase in its return ratios with the return on equity (RoE) increasing from 11.14 percent during FY21-22 to 14.79 percent during FY22-23. The return on capital employed, too, rose from 12.43 percent to 17.63 percent keeping the time horizon the same.
According to the latest shareholding data for the quarter ended December 2023, the company’s Promoters hold a 68.54 percent stake, Public (retail) investors hold a 24.29 percent stake, and the Foreign Institutional Investors (FIIs) hold a 3.02 percent stake in the company.
Incorporated in 1939, Nesco Limited is engaged in the business of licensing premises in Information Technology (IT) park buildings and providing other related services. The company’s services include shot peering, shot blasting, and other surface preparation equipment and systems.
Written by Amit Madnani
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