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NESCO - Good, nobody seen it so far!

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2795
Printed Date: 20/Apr/2025 at 6:27am


Topic: NESCO - Good, nobody seen it so far!
Posted By: manish_okhade
Subject: NESCO - Good, nobody seen it so far!
Date Posted: 22/May/2010 at 9:24am
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.
 
Supply Area 28,000 Sq. Kms
Population Covered Above 90 Lacs
No. of Districts 5
 
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:
 
Earnings Per Share 21.29 28.18 25.85 52.24 46.57
 
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.


Replies:
Posted By: amitdip
Date Posted: 22/May/2010 at 9:42am
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.

Posted By: Circuit
Date Posted: 22/May/2010 at 11:33am
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


-------------
Fundamentalists and anticipators may have difficulties with risk control because a trade keeps looking ‘better’ the more it goes against them....Ed Seykota

Posted By: manish_okhade
Date Posted: 23/May/2010 at 3:40pm
Find below the correct website:
 
http://www.nescoorissa.com/ - http://www.nescoorissa.com  

Posted By: amitdip
Date Posted: 23/May/2010 at 3:59pm
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.

Posted By: manish_okhade
Date Posted: 23/May/2010 at 4:09pm
Amit,
 
Plz check in moneycontrol.com with NESCO, you will get all the links automatically.

Posted By: amitdip
Date Posted: 23/May/2010 at 2:32am
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.

Posted By: Market Maniac
Date Posted: 26/May/2010 at 2:57pm
Its a subsidiary of Reliance Infra

Posted By: karn
Date Posted: 15/Jun/2010 at 2:55pm
Keeping in view the objectives of the power sector reform, the management of the Company has been handed over to BSES Ltd. (Now Reliance Energy Limited,), Mumbai on 01.04.1999, upon transfer of 51% shares hold by GRIDCO in the company in favour of BSES Ltd. through competitive bidding process.


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