Tata Group company Nelco has recently come into the spotlight after receiving an important approval from the Department of Telecommunications (DoT). Following this announcement, Nelco’s stock surged by 3.35%, drawing strong interest from investors.
Nelco Receives VSAT-VNO Unified License
The DoT has granted Nelco a Unified License – VSAT Virtual Network Operator (UL VSAT-VNO) approval.
This means:
- Nelco can now provide satellite connectivity services to smaller companies such as local ISPs and system integrators.
- These companies will be able to offer satellite-based internet services under their own brand name, using Nelco’s infrastructure.
Benefits of the License
- Smaller companies do not need to set up their own satellite network.
- Nelco will gain new customers and higher business volumes.
- The license is valid for 10 years, ensuring long-term business visibility.
Impact on Share Price
After the approval news, Nelco’s stock climbed to ₹1,161.50, marking a 3.35% increase.
Key Market Figures
| Metric | Value |
|---|---|
| Market Cap | ₹2,521 crore |
| 52-Week Return | +38% |
| 5-Year Return | +453% |
| Q4 Revenue (YoY) | ₹68 crore (down 17%) |
| Q4 Net Profit | Loss of ₹4 crore (vs profit of ₹6 crore last year) |
Although the recent quarterly results showed a loss, the new license is expected to boost the company’s growth path ahead.
What Does Nelco Do?
Nelco is a Tata Group enterprise specializing in satellite communication services.
Key Services:
- VSAT Connectivity
- Aviation & Maritime Satellite Communication
- Remote and offshore communication solutions
Key Clients:
- Defence sector
- Oil & Gas companies
- Banking & ATM networks
- Airlines and Marine services
Future Focus:
- Satellite-based IoT
- 5G Backhaul Connectivity
Conclusion
The new VSAT-VNO license is a major growth opportunity for Nelco, strengthening its position in India’s satellite communication sector.
However, since the company reported a loss recently, investors should monitor performance and financial improvements before making decisions.
For now, Nelco is definitely a stock to watch in the telecom and satellite service space.
