NESCO Limited, which was established as a tool making company in 1939, is now a realty play, having 70 acres land bank in Mumbai’s prime suburban region (at Goregaon), on the Western Express Highway.

Total income and net profit for the December 2015 quarter stood at Rs. 72 crore and Rs. 35 crore respectively, which has remained more-or-less consistent from the second quarter of FY16. Company has declared interim dividend of Rs.8.50 per share.

Total income for 9MFY16 stood at Rs. 196 crore, and PAT came in at Rs. 95 crore, translating to an EPS of Rs. 67.61. Bombay Exhibition Centre and Nesco IT park each contribute a little over 40% to the company’s topline. As of 30th September 2015, net worth was at Rs. 600 crore and BVPS stood at Rs. 425. Besides being completely debt free, it has surplus cash and equivalents of Rs. 400 crore, indicating cash per share of Rs. 285.

This stock has been recommended by us with potential to touch Rs.1,900 over the next 8-10 months.