Nesco


(SSRN) #388

Undoubtedly Nesco has created a lot of value of shareholders and is poised to do more value creation in future. But considering the nature of business and stability of cash flows I feel Nesco can create much more value if judicious use of leverage was done. Capital allocation in Nesco can be much better and ROE could have been much better. Both companies generate about 200 Cr of operating cash flows - one with 23 acres and another with 65 acres. I think Nirlon owners being financial investors know how to sweat their assets better. It is reflected in the superior EV/Acre enjoyed by Nirlon (probably a better metric than MCAP/Acre). Having said that Nesco seems to enjoy a higher EV/EBITDA than Nirlon because of better scope to grow. Nirlon owner with Nesco property may have been the ideal cocktail for investors.


(Shiv Kumar) #389

any updates on how the construction is progressing?


(barathmukhi) #390

I presume this is good news for Nesco? The current FSI for Nesco’s IT buildings is 3 and this development increases it to 5?


#391

Construction progress (as on April 15, 2018)

Sharing video link to recognize location of const. site
please ref: https://vimeo.com/181905944


(MK) #392

Hi,

I’m a newbie to investing and was looking at Nesco, but couldn’t find the reason as to why the management is tearing down the IT Building 1 and building the new exhibition center there rather than utilizing the existing land bank available within the premises, as this would certainly hit their cashflows, which they require for their large upcoming capes

Has the management highlighted any reason for this?

Thanks


(shenbal) #393

Visit note from HDFC Securities … Very interesting read.

Disc: Tracking and planning to invest.

NESCO_-Visit_Note-Mar18-_HDFC_sec.pdf (782.6 KB)


(Vikas Kasturi) #394

The curious case of Dibakar Chaterjee.

Who is he? His linkedin profile says he is the CEO of Nesco Limited since 2015 till date. Even Amogh’s notes from last year’s AGM says, he was the CEO and was very forth coming in the AGM. But, I don’t find any mention of him in the 2017 and 2018 Annual reports. Just try Ctrl+F. Not even in the Key Management Personnel list.

But that article mentioned above in Business India does quote him as the CEO.

So I am curious. He is the CEO but why is there no mention of him anywhere? Deepesh Singhania who is the CFO finds mention in the KMP, but no Dibakar C.

Any thoughts from anybody?


(Vivek) #395

But, I don’t find any mention of him in the 2017 and 2018 Annual reports

I am unable to find the 2018 Annual report, can you share where you got this? Its not in BSE or company website


(reddygvsb) #397

This announcement in November 2016 says KMP. https://www.bseindia.com/xml-data/corpfiling/AttachHis/048278ED_EA61_401D_A19B_682FB0BD168C_161821.pdf


(Vikas Kasturi) #398

Vivek,
The AR can be found here. http://sharexindia.com/reports/505355_2018.pdf


(Vikas Kasturi) #399

And it is not mentioned in Annual Report, because?


(gardner) #400

what are we trying to speculate here?

. . . anyways, for whatever it may be worth, the latest profile on Linked-In still tells that he is the CEO:
https://www.linkedin.com/in/dibakar-chatterjee-68026817


(Kumar Saurabh) #401

My guess from some of interviews is he might ve been roped to scale consumer business which is not so big n hence name missing. The last public interview belongs to sept17


(reddygvsb) #402

I have no idea. I was just providing another data point.


(gardner) #403

Hi all.
I shall be traveling to Mumbai to attend NESCO’s AGM on the 8th of August; my first ever.

It may be a good idea that we call could combine a variety of questions that some of you may have; kindly Direct Message me. . . I shall collate all questions and share in a single post by first week August, and shall try my best to secure answers for those.

Regards!


(fillic2002) #404

Vivek has a point as the company secretary is mentioned but not CEO


(fillic2002) #405

Question from my side…

  1. What is status on building #4?
  2. How much they are factoring in asset value for the new building?
  3. By when it would be operational?
  4. What is the future plan for hospitality business?

(Pod85) #406

Can you ask them if they have plans to build a hotel soon


(Shiv Kumar) #407

hotel will be constructed in the next phase after IT building 4 is occupied and rented out. they do it slow and steady. spend after the money is earned so that there is no debt in the balance sheet

disclosure: holding


(Mridul) #408

My questions-

i think they decided to demolish buildings 1 and 2 due to low FSI (2) vis a vis high FSI (4) for exhibition center. Proximity to BEC (within Nesco premise) was another reason for proposed demolition. Now, with FSI being raised to 5 for everything(?), can there be change in plan? Meaning, location of New BEC might be shifted to vacant land where building 5 is proposed?

How long will it realistically take to fill whole building 4 post completion?

Status on reliance convention center and their strategy?

Reg BEC and traffic woes - They have been asked to not accept more than 50% of the bec capacity on weekdays. Due to traffic woes. Bec performance was subdued cause of this reason in q4? How wd it impact numbers going foward and for how long?