East India Securitie's report on Nesco
Nesco Ltd (Nesco) progressed on its turnaround path in Q4FY23 Sales at Rs1,572 mn ‐ up 72.7% YoY/ 10.1% QoQ EBIDTA at Rs994 mn ‐ up 59.0% YoY/ 21.4% QoQ EBIDTA margin at 63.2% down 542bps YoY but up 588bps QoQ PAT at Rs850 mn ‐ up 58.6% YoY/ 21.2% QoQ IT Park business delivered lower revenue with overall occupancy dropping to ~90% on account of vacancy created in IT‐3. IT 4 continues to witness a steady uptick in occupiers’ attendance. With sustained collections and steady improvement in occupancy, the office segment is well poised for growth. On a YoY basis, the continued momentum in the economy post pandemic demonstrated rising numbers in the exhibitions and events held at BEC albeit with moderate growth in revenue of Foods division.
Outlook
We retain our Buy rating on the stock with a TP of Rs770 (16.5x FY25 EPS).
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