NESCO may move to Rs 1800: Daljeet Singh Kohli

Daljeet Singh Kohli, Head of Research at India Nivesh Securities told CNBC-TV18, "Amongst the real estate players, NESCO is one of the cleanest company with no debt at all. Now, what they have done and the entire growth has come from internal accruals. The next few years also, will come only from internal accruals. So, that is very good part about this company.""Second thing is that, this company has two streams of revenue. One is the Bombay Exhibition Centre. Last year, it has not done well, because the overall gloom and doom scenario was there and the exhibition business did not do very well although it has a monopolistic status there and normally, 1-1.5 years is advanced booking done for this company. So, now, that is taking some shape.""Third is the revenue coming from the rental businesses of IT parks, the three buildings that they have done. The third building that has come up now. So, the numbers will start flowing for the entire third building. Fourth building, they have started digging, so which will again be in the next two to three years, that will become a trigger point," he added."The biggest re-rating will come when the floor area ratio (FSI) for the entire company will increase which they have already requested Bombay and Maharashtra government. The chances are that if that happens, then the FSI will increase three times. Then this stock can actually see huge re-rating and the stock can go up much more. Even if that does not happen in terms of valuations it is quite cheap and with a regular annuity flow of rental income, we have given target of Rs 1,800 now," he said.