Buy Nesco, target price Rs 745: ICICI Direct

ICICI Direct has buy call on Nesco with a target price of Rs 745. The current market price of Nesco Ltd. is Rs 592.55.
Nesco Ltd., incorporated in the year 1946, is a Mid Cap company (having a market cap of Rs 4190.61 Crore) operating in Real Estate sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated Total Income of Rs 78.06 Crore, down 14.58 % from last quarter Total Income of Rs 91.39 Crore and down 42.02 % from last year same quarter Total Income of Rs 134.64 Crore. Company reported net profit after tax of Rs 32.47 Crore in latest quarter.

Investment Rationale
The brokerage likes Nesco, given the prudent management pedigree, steady & planned expansion across verticals funded largely through internal accruals and niche profitable business model including foods/own events etc. Post a washout FY21 for exhibition, it expects gradual recovery from H1FY22 as pandemic effect fades completely. The IT park business is also likely to get a boost as occupancies improve in FY22. It maintains BUY rating on the stock with an SoTP target price of Rs 745/share (Rs 650, earlier).