1. At a Glance
NELCO Ltd, a Tata Group company and satellite comms player, is beaming signals and bleeding profits. At ₹905 per share, it trades at a galactic P/E of 305 and is still 40% down from its ₹1,503 peak. Market cap? ₹2,065 Cr. Profit? A humble ₹7 Cr TTM. Houston, we have… a valuation problem.
2. Introduction with Hook
Imagine a telecom tower… floating in space, run by a Tata subsidiary, and priced like it’s got Starlink-level ambitions. That’s NELCO.
Founded in 1940 and reborn as Tata’s satellite arm, it’s now operating in the niche (and quiet) corner of the telecom industry—VSAT (Very Small Aperture Terminal) services. It connects oil rigs, defence zones, and remote offices.
- TTM Sales: ₹306 Cr
- TTM PAT: ₹7 Cr
- TTM OPM: 12%
But despite 83 years in orbit, revenue refuses to leave the launchpad.
3. Business Model (WTF Do They Even Do?)
NELCO operates in a B2B niche of satellite communication services, mainly for:
- VSAT Connectivity: High-reliability comms for businesses, banks, oil rigs, and remote sites.
- Satcom Projects: Turnkey solutions and system integration for private and government clients.
- Security and Surveillance: Integrated systems for defence and critical
