NESCO - North Eastern Elect. Supply Co. of Orrisa

Edited by manish_okhade - 23/May/2010 at 3:42pm

Originally posted by amitdip I don't think its same Nesco. Its this NESCO. Its returned 20 bags in last five years already. I can vaguely recall it was real estate play too. http://www.nesco.in/ The EPS that you have mentioned does not capture 1:1 Bonus ! Its performed twice as good.

This is New Standard Engineering Co. (NESCO). It has huge real estate land between Goregaon & Jogeshwari which they use currently for exhibitions/functions business

Originally posted by manish_okhade NESCO - North Eastern Elect. Supply Co. of Orrisa   North Eastern Electricity Supply Company of Orissa Limited (NESCO) was incorporated on 19.11.1997 under the Companies Act, 1956. It has taken over the Business of “ Distribution and Retail Supply of Electricity” in the North Eastern Zone of the Orissa of GRIDCO, comprising the Districts of Balasore, Mayurbhanj, Keonjhar, Jajpur, and Bhadrak.   <TABLE id=mytable cellSpacing=2 cellPadding=4 width="95%" align=center border=1><T> <T> <TR> <TD width="60%" ="style1">Supply Area</TD> <TD width="40%" ="style1">28,000 Sq. Kms</TD></TR> <TR> <TD width="60%" ="style1">Population Covered</TD> <TD width="40%" ="style1">Above 90 Lacs</TD></TR> <TR> <TD width="60%" ="style1">No. of Districts</TD> <TD width="40%" ="style1">5</TD></TR></T></T></TABLE>   Financials:   CMP:1086 MCap: 765 Cr EPS-TTM:46.5 PE-TTM: 23   RoE & RoCE, NP Margin: North of 30+% Company is debt free.   Business Model:   NESCO buys the electricity from venbdors and sale it to customers (Industrial and Household). In this process mints the money with good margin. Its a plain electricity trading where risk on price control is less, few cents increses on and off nobody notices and moreover people have no choice to switch to any other supplier.   Company delivered consistantly till FY09:   <TABLE cellSpacing=0 cellPadding=0 width=740 ="table4"><T> <T> <TR height=22> <TD width="35%" ="detb">Earnings Per Share</TD> <TD align=right ="detb">21.29</TD> <TD align=right ="detb">28.18</TD> <TD align=right ="detb">25.85</TD> <TD align=right ="detb">52.24</TD> <TD align=right ="detb">46.57</TD></TR></T></T></TABLE>   F10 10 9M EPS: 51.52   Hence full year results would be definitly better and reduce the PE to 15-17 range.   BS shows the investment of 110 Cr so 20% money is in share price at current level.   NESCO has alaways been cash positve and run by the Govt. hence equity dilution is nill.   This is the stock which is dusting mostly due to no hullah-hue from the prometrs i.e. Govt. but is a silent performer. If Peter Lynch is to believed then stock price will get re-reting on consistanrt profit growth.

There has been a confusion. Financials posted are for one company and business description is for another.


NESCO - North Eastern Elect. Supply Co. of Orrisa (http://www.nescoorissa.com ) is not listed in stock market but

New Standard Engineering Co. (NESCO)
(http://www.nesco.in/) is.

Originally posted by manish_okhade Amit,   Plz check in moneycontrol.com with NESCO, you will get all the links automatically.

Manish,

I'm confused. Can you please let us know which (NESCO) company is being discussed on this thread ?

Nesco Orissa or New Standard EngineeringCo. ltd.

Moneycontrol link for NESCO says New Standard Engineering Co: http://www.moneycontrol.com/company-facts/nesco/history/NES
whereas you are discussing North Eastern Electricity Supply Company of Orissa Limited (NESCO)...please clarify.

My confusion stems coz you discussed at the starting of this thread
NESCO - North Eastern Elect. Supply Co. of Orrisa
which is not a listed company, if it is not listed why are we discussing it.




Edited by amitdip - 23/May/2010 at 6:50am