Completed annual analysis of Nesco from AR numbers. Good and stable growth.
- There is some variability in the industrial segment. Op. profits in last 5 years have ranged from -3.5 million to 36 and to 19 this year. Wish this was a little more predictable.
- Stable margins: EBITDA at 68%, PBT at 60%
- No increase in dividends despite strong growth in PBT from 226 cr to 366 cr. Wish this was reviewed.
- % Op Assets financed by Float at stable 17% (Refer to prof. Bakshi’s original article on the co)
- decent growth in BV/share at 16%. In the long run, price should catch up with increases in BV.
- promoter salary flat at 8.7 cr.
All in all, stable and reliable growth - the kind of thing one expects from owning Nesco. It would have been nice if there were some fresh growth drivers though.
One confusion:
Current investments in FY22 BS as per FY22 AR: Rs. 196.9 cr
Current investments in FY22 as per FY23 AR: Rs. 525 cr.
Perhaps someone can throw light on this.