NELCO drops on profit booking

NELCO hit a 5% lower home run at Rs 830.85 on the profit sell after a recent sharp rise.

Shares of NELCO have jumped 59.08% in the past ten sessions from its recent closing low of Rs 549.75 on September 22, 2021.

The counter hit a 52-week high of Rs 918.25 today. It jumped 377.50% from its 52-week low of Rs 174 reached on October 15, 2020. Over the past month, the stock has climbed 57.52% against a 2.4% rise in the Sensex .

The recent rally in the stock came to fruition after media reported that Nelco would partner with Canada’s Telesat to launch commercial satellite communications (satcom) services by 2024. It would focus on supply affordable pricing to attract business-to-business (B2B) customers in a developing market that will include Elon Musk’s SpaceX and Bharti Group-backed OneWeb as rivals.

On the technical side, the RSI (relative strength index) of the stock stood at 58.08. The RSI fluctuates between zero and 100. Traditionally, the RSI is considered overbought when it is above 70 and oversold when it is below 30.

The stock is trading above its 50 and 200 day simple moving average placed at 790.73 and 616.41 respectively. These levels will act as crucial near-term support areas.

On a consolidated basis, NELCO’s net profit increased by 138.04% to Rs 4.38 crore on an 11.27% increase in net sales to Rs 55.10 crore in Q1 June 2021 compared to Q1 June 2020 .

Nelco, part of the Tata group, one of India’s leading VSAT providers. It offers end-to-end networking solutions (Satcom projects) and maintenance of private hubs and hybrid networks for its customers, from government to enterprises.

The company holds VSAT license, Internet Service Provider (ISP) license as well as Inflight & Maritime Communication (IFMC) license issued by Government of India Department of Telecommunications (DOT).

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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