Nelcast Ltd

Nelcast Ltd is the largest jobbing foundry in India for the manufacturing of Ductile & Grey Iron Castings. The company products cater to the Global Automotive, Tractor, Construction, Mining, Railways and General Engineering sectors. Its products include Un-Machined Castings and Machined Castings. Nelcast has an aggregate installed production capacity of 160,000 Metric tonnes per annum. Its factories are located at Ponneri in Tamil Nadu, and at Gudur and Pedapariya in Andhra Pradesh. Extremely good Q1 and strong visibility of earnings in coming quarters make the stock good buy for target price of Rs150 in next few months.