Research report by Equirus
Equirus_Securities_Nesco_3QFY18.pdf (615.4 KB)
I was looking at their NFAT for the past decade. It has deteriorated and remained constant except for couple of instance. Have they lost the pricing power or they under utilizing their assets?
With the renewed FSI, can we hope some improvement in it?
The additional municipal commissioner is a relatively junior official and the management can appeal to higher officials to get the decision reversed.
Such knee jerk measures threaten the government’s ease of doing business.
I feel management may even go to the courts to get the decision reversed.
Anyway IMHO any fall in stock price tomorrow must be capitalized.
I find it quite strange that they will put a blanket ban on exhibitions. I mean if the metro work is going to last for another 18 months, does that mean no exhibitions will be held? I find that hard to believe. By that yardstick they should ban all festivities and processions that come out in the city every week as they too lead to traffic.
Yes, you are right. In case of such drastic measures - they will / should approach the court. But then again that is a process in itself and may lead to loss of earnings.
If this impacts the stock, it will be a great time to buy.
Also, who can we write to at the company to get more details on this? Would that be the company secretary or is there an email for investors?
Hi Aman- I have written to the CS, Jinal Shah, last night to get a response on the same. Her email id is: Jinal [email protected]
They have responded to queries in the past but not sure if I will hear back from them. Will keep you posted in case I do. In anycase I think they will be giving a notice to the exchanges tomorrow (I hope).
Thanks Harini. Considering you’ve already written to them, we will wait to receive updates from you in case you hear back from them.
Your proactiveness and effort in writing to them is much appreciated. Thank you.
Yes, one can also expect them to give a notice to the bourses tomorrow.
The permission was requested for automation exhibition Aug 29 to sept 1, but the approver has mentioned no exhibitions henceforth, which is bit confusing
I have been stuck in traffic for hrs due to exhibitions. BMC does have a right to restrict these activities in the name of public order. I am sure this kind of blanket order will be reversed and should be reversed. I will say that the company is certainly not aware of its surroundings and some amount of restriction was coming for sure. Due to metro work etc it is becoming hellish to even venture out during office hrs and exhibitions compound the problem multifold. Could they work on restricting the exhibitions during weekends, reducing scope or changing timing along with better coordination with traffic police? I am sure they could do something to stop it from snowballing into a major issue.
Disc: no holding
at the AGM Sumant Patel said the BMC was refusing to make the service road outside into a one-way road which would have helped solve the problems. There are also other issues raised by the residents like shifting a temporary workshop for the metro construction project elsewhere.
We can expect NESCO to obtain a stay on the BMC order from the Bombay High Court since permissions may have been given for many of the exhibitions several months ago. There will be traffic restrictions going ahead and this could affect the Exhibitions business in the medium term.
disclosure: holding and will add on dips
Anybody working in that area will tell you that’s completely unworkable at least till the metro work is completed. Even workforce in Nesco IT park use the service roads for two way movement.
This is known policy of reliance group. They kill competitor by imposing policy by influencing govt. When they started refinery at Jamnagar, they just killed Essar oil refinery at Jamnagar by imposing environmental policy. In BKC reliance coming with exhibition center hence they will kill Nesco business.
That letter might be fake or wrongly interpreted.
Any idea totally how many halls are there ? Letter says hall 1 & 2. Website schefule lists hall I,II,III,IV,V etc… There could be a possibiliry of partial ban and hence botg letters might be correct
@suru27 all halls are within the boundaries of the 65 acre land. I don’t think it would matter which hall holds the exhibition(s). If there is a traffic problem, it could be due to any exhibition as the premises are parallel to the service road and the western express highway. Though I’d agree that it can lead to bad traffic if the exhibition is not handled properly (which I believe the management has tried to address with the relevant authorities and the traffic police).
Although, on the AGM day, the premises were holding some gems and jewellery exhibition (one of the largest as per Mr. Sumant Patel), I didn’t see any traffic while leaving the Nesco compound (around 6 pm).
Btw, traffic is terrible across the city. Be it due to metro work, dugged up roads or pot holes that show Mumbaikars how the surface of the moon looks like. I hate the fact these folks are being singled out.
Disc: Invested and supremely biased.
BMC bars events at Goregaon ground till Metro 7 work is over - http://toi.in/XaM1Mb2/a31gj
Don’t think we will hear from the management before open today.
To illustrate my thoughts above. This pretty much happens all the time across the city.
Nobody would have the courage to touch any of these festivities and processions. This leads to traffic too. And traffic is traffic, so now we will be saved by exhibition traffic to be stuck in other traffic. Makes a whole lot of sense (fistful of sarcasm intended )
No response from the CS yet. Had called up the office to inquire if the exhibition this week is happening- the office staff asserted that it is.
Possibly a case of information from directors not being passed down. But that is the response so far.
Going by d article, v r lookin at almost 30% revenue cutdown for almost an year. Any heads-up from d guys who r working near by. Do u observe whether d exhibitions is on r not?