Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

<ul>
<li>Nesco's Bombay Exhibition Center (BEC) business where revenues declined to almost negligible during the last couple of years due to COVID, is now recovering as COVID restrictions have receded.</li>
<li>During Q1FY23, BEC business did INR 16.8cr in revenues (annualized INR 65cr+) and is on track to normalize to pre-COVID levels of INR 150cr+.</li>
<li>Nesco's IT Park business continues to remain strong with 90%+ occupancy in Tower 4 and 80% occupancy in Tower 3.</li>
</ul>


Nesco's Bombay Exhibition Center (BEC) business where revenues declined to almost negligible during the last couple of years due to COVID, is now recovering as COVID restrictions have receded.
During Q1FY23, BEC business did INR 16.8cr in revenues (annualized INR 65cr+) and is on track to normalize to pre-COVID levels of INR 150cr+.
Nesco's IT Park business continues to remain strong with 90%+ occupancy in Tower 4 and 80% occupancy in Tower 3.


External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

External broker reports(aggregated public sources)

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>Brigade Enterprise: We expect revenue to increase by 122% YoY in 1QFY23, but decline by 10% QoQ to Rs8,493mn.</li><li>The sharp increase in revenue YoY is mainly due to a lower base in 1QFY22, which was affected by the second covid wave.</li><li>EBITDA margin for 1QFY23 is expected at 26.2% vs 21.8%/29.1% in 4QFY22/1QFY22.</li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Brigade Enterprise: We expect revenue to increase by 122% YoY in 1QFY23, but decline by 10% QoQ to Rs8,493mn.The sharp increase in revenue YoY is mainly due to a lower base in 1QFY22, which was affected by the second covid wave.EBITDA margin for 1QFY23 is expected at 26.2% vs 21.8%/29.1% in 4QFY22/1QFY22.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Real Estate and Ceramics - Residential Demand Remains Strong; Commercial Demand in Recovering Phase

<ul>
<li>IT Park occupancy has been steadily rising over the past few quarters. Q4FY22 IT Park revenue grew 3.3% QoQ.</li>
<li>Bombay Exhibition Center (BEC) business is on track to normalize as COVID restrictions have been removed completely.</li>
<li>With the BEC business normalizing, Nesco Foods business is also ripe to scale up.</li>
</ul>


IT Park occupancy has been steadily rising over the past few quarters. Q4FY22 IT Park revenue grew 3.3% QoQ.
Bombay Exhibition Center (BEC) business is on track to normalize as COVID restrictions have been removed completely.
With the BEC business normalizing, Nesco Foods business is also ripe to scale up.


Nesco: IT Park Occupancy Continues to Improve; BEC Recovery on Track

<div><div><div><div><ul><li>Consolidated revenue decreases by 2.5% QoQ but increases by 21.3% YoY to Rs910.7mn in 4QFY22</li></ul><div><div><div><div><ul><li>NESCO reported 4QFY22 revenue of Rs910.7mn, up 21.3% YoY but down by 2.5% QoQ.</li></ul><div><div><div><div><ul><li>IT Park segment’s revenue stood at Rs705mn, up 15% YoY and 3% QoQ.</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Consolidated revenue decreases by 2.5% QoQ but increases by 21.3% YoY to Rs910.7mn in 4QFY22NESCO reported 4QFY22 revenue of Rs910.7mn, up 21.3% YoY but down by 2.5% QoQ.IT Park segment’s revenue stood at Rs705mn, up 15% YoY and 3% QoQ.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

NESCO - Gradual Revival in IT Park & F&B Amid Opening up of Economy

<ul><li>The upswing in the residential market continues driven by (1) Low interest rates (2) Higher disposable income and (3) Pricing discipline.</li><li>Demand for commercial realty will continue to recover in short to medium term, led by (1) Large hiring in IT/ITeS and other sectors (2) Return to office trend.</li><li>Leasing activity in the commercial segment has started to see a revival, driven by return to office trend post easing of covid-led r...(continued).</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

The upswing in the residential market continues driven by (1) Low interest rates (2) Higher disposable income and (3) Pricing discipline.Demand for commercial realty will continue to recover in short to medium term, led by (1) Large hiring in IT/ITeS and other sectors (2) Return to office trend.Leasing activity in the commercial segment has started to see a revival, driven by return to office trend post easing of covid-led r...(continued).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Real Estate and Ceramics: Real Estate on an Upswing

India

Nesco Ltd. is a diversified company involved in manufacturing and engineering products for railways and forging,  realty development, and runs an exhibition center.

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Nesco Ltd (NSE IN)

Nesco: BEC Business Is Now Recovering

Nesco provides an interesting investment opportunity to play the post-COVID normalization theme. At current valuation, it offers 70%+ upside over...

Ankit Agrawal, CFA

Real Estate and Ceramics - Residential Demand Remains Strong; Commercial Demand in Recovering Phase

Demand for residential real estate continued to remain strong in 1QFY23 while a sharp recovery is expected in rental assets (malls/offices) as the...

Nirmal Bang

Nesco: IT Park Occupancy Continues to Improve; BEC Recovery on Track

Nesco's business is normalizing with opening up of the economy post COVID. IT Park occupancy has been on the steady rise. BEC revenues are on track...

Ankit Agrawal, CFA

NESCO - Gradual Revival in IT Park & F&B Amid Opening up of Economy

NESCO reported revenue of Rs910.7mn, up 21.3% YoY but down by 2.5% QoQ. NESCO IT Park’s 4QFY22 revenue stood at Rs705mn, up 15% YoY and 3% QoQ.

Nirmal Bang

Real Estate and Ceramics: Real Estate on an Upswing

The upswing in the residential market continues driven by (1) Low interest rates (2) Higher disposable income and (3) Pricing discipline.

Nirmal Bang

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