1. At a Glance
NESCO is that rare Indian company which behaves like your rich uncle — silent, conservative, loaded with land, allergic to debt, and mildly annoyed when markets try to undervalue him. At a market cap of around ₹7,810 Cr and a current price hovering near ₹1,108, NESCO quietly printed ₹248 Cr of revenue and ₹105 Cr PAT in the latest quarter, while the stock politely corrected ~18% in the last 3 months just to remind everyone that markets don’t reward patience daily.
Operating margins north of 50%, ROCE of ~21%, negligible debt (₹110 Cr against assets of ₹3,353 Cr), and investments of ₹1,494 Cr sitting idle like a fully paid-up emergency fund. Oh, and a 23+ lakh sq. meter land bank in Mumbai’s Goregaon. Normal company? No. Mumbai real estate cheat code disguised as a listed stock? Maybe.
But before we get carried away — Q3 FY26 PAT is down YoY, margins slipped, and Tower 2 development drama continues. Is this a sleepy compounder or a capital allocator testing investor patience? Let’s dig.
2. Introduction – The Most Boring Flex in Dalal Street
NESCO doesn’t do concalls every quarter screaming “TRANSFORMATION”. It doesn’t dilute equity. It doesn’t borrow aggressively. It doesn’t chase unrelated diversification just to look cool.
Instead, it licenses office space, hosts exhibitions, feeds Mumbai at scale, manufactures industrial equipment on the side, and quietly compounds book value.
Founded decades ago, NESCO today is essentially a Mumbai land monetisation platform with annuity-like cash flows. The IT Park throws rent cheques, the Bombay Exhibition Centre (BEC) prints cash whenever India feels like hosting an expo, and Nesco Foods is suddenly acting like a startup on steroids.
The result? From FY20 to FY24:
- Sales CAGR picked up sharply post-Covid
- PAT crossed ₹400 Cr
- Investments nearly doubled
- CWIP ballooned (hello Tower 2)
Yet the stock oscillates between “boring” and
“overvalued REIT wannabe”. Why? Because NESCO doesn’t spoon-feed growth guidance. Investors have to read filings. Tragic.
3. Business Model – WTF Do They Even Do?
Think of NESCO as a four-engine aircraft, each engine flying at a different speed but all fueled by Mumbai real estate.
1️⃣ IT Parks – The Rent Machine
Contributes ~41% of FY24 revenue.
Occupancy above 98%.
Tenants include global names like HSBC, KPMG, BlackRock, MSCI, etc.
This is the crown jewel. Long-term licenses, predictable cash flows, obscene margins. Towers 3 & 4 already operational. Tower 2 is the next monster — 4.6 million sq. ft. planned, ₹3,500 Cr capex over six years.
2️⃣ Bombay Exhibition Center – Event Monopoly
~27% of revenue. India’s largest private exhibition venue.
Over 100 exhibitions annually, 2+ million footfalls.
If India is exhibiting something, chances are it’s happening at BEC. Post-Covid recovery has been strong, though growth here is steadier, not explosive.
3️⃣ Nesco Foods – The Surprise Package
~13% of revenue, fastest growing segment.
Revenue up 175% between FY20–FY24.
Largest non-flight kitchen in Mumbai. 80,000 meals a day. Restaurants, food courts, B2B catering, and expansion beyond Nesco Center planned.
4️⃣ Indabrator – The Industrial Side Quest
~7% of revenue.
Manufactures capital equipment for Railways, Defence, and
