Shares of NELCO Ltd., the Tata Group company, surged as much as 13% on Tuesday, April 21, following the announcement of its March quarter results after market hours on Monday. According to reports from CNBC TV18, this represents the biggest single-day gain for the stock since December 2024. The stock had ended lower on Monday ahead of the results announcement, snapping a five-day gaining streak before the positive reaction to the quarterly performance.
NELCO returned to profitability in the March quarter, reporting a net profit of ₹1.1 crore compared to a net loss of ₹4.1 crore in the same quarter last year. As reported by CNBC TV18, revenue for the quarter also increased by 17.3% year-on-year to ₹79.2 crore from ₹67.5 crore. The company's board also approved a final dividend of ₹1 per share, which will be subject to approval from shareholders at the upcoming Annual General Meeting.
According to CNBC TV18 reports, Tata Power is the promoter of NELCO, owning a 50% stake in the company as of the March quarter. India's Mutual Funds do not have any shareholding in NELCO, while Schlumberger Ltd. owns a 3.8% stake. As many as 6.9 lakh small retail investors, or those with authorized share capital of up to ₹2 lakh, have a 33.1% stake in the company. Shares of NELCO are currently trading 13.3% higher at ₹763.7, with the stock having reversed all of its losses for the year and turned positive on a year-to-date basis.
Despite today's strong move and the 41% surge the stock has seen in the last one month, shares are still down 34% from its 52-week high of ₹1,161, as reported by CNBC TV18. This performance context highlights the significant recovery from recent lows while indicating the stock remains well below its peak valuation levels despite the positive quarterly results and market response.
