In chat with Anil Singhvi, Sandeep Jain recommends Nelco share | Money-making opportunity

In today’s edition of ‘Jain Sahab Ke Gems’, market analyst Sandeep Jain, while speaking to Zee Business Managing Editor Anil Singhvi, revealed a great strategic counter for investors. Today, he has recommended a stock that he said has potential to give high returns to investors. The stock he picked today is Nelco Limited and here is why.

According to Sandeep Jain, Nelco Limited is a top-quality company and its a part of TATA group. Started in 1940, Nelco is focused on helping its enterprise and government customers unlock potential by offering solutions in the areas of VSAT connectivity, Satcom Projects and Integrated Security and Surveillance Solutions. Nelco is one of India’s leading VSAT providers.

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In today's episode, market analyst Sandeep Jain informed: "If we talk about the fundamentals of Nelco Limited, the good thing about the company is its balance sheet quality, presence of TATA group, and it has witnessed a good growth in last few years. Another positive point about Nelco is return on capital employed is around 20 percent. The return on equity is also around 22 per cent. Nelco FIIs and DIIs holding is around 5-6 percent."

"Nelco has also reduced its debt in last September quarter. And, if we see the growth of the company in last 3 years, it is around 15-16 percent. When we calculate the company's profit in last 3 years, it is around 30 percent, 51 per cent in last 5 years and 46 percent in last 7 years. Nelco has performed consistently in last few year," Jain further added.

He also said: "If we compare the results of last September quarter and 2019 September quarter, then Nelco Limited did perform well.  The company was least affected during the coronavirus crisis. Nelco has also reduced its debts in last few years, which is again a big positive."

Investors Strategy For Nelco Stock 
On what should be the strategy that a stock market investor can maintain in regard to Nelco Limited shares, Jain told Anil Singhvi, "Nelco Limited stock is currently trading around Rs 218.00 and one can target this stock at Rs 250-260."