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Nelco up 10% on pact with Intelsat to offer inflight connectivity in India

Nelco has been offering the Aero IFC services for more than two years with plans to introduce these services to more airlines in collaboration with its global partners

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Deepak Korgoankar Mumbai
4 min read Last Updated : Aug 26 2022 | 9:53 AM IST
Shares of Nelco were locked at the 10 per cent upper circuit, at Rs 856.65 on the BSE on Friday, after the company partnered with Intelsat to offer inflight connectivity in India.

Till 09:18 am, a combined 136,000 shares had changed hands and there are pending buy orders for around 150,000 shares on the NSE and BSE. The stock had hit a 52-week high of Rs 968.55 on October 19, 2021.

In the current week, the market price of Nelco has appreciated by 28 per cent, as compared to 1.6 per cent decline in the S&P BSE Sensex. In the past three months, it has rallied 52 per cent, as against 10 per cent rise in the benchmark index.

Intelsat, operator of one of the world’s largest integrated satellite and terrestrial networks and a leading provider of inflight connectivity (IFC), announced on Thursday the beginning of Intelsat's in-flight connectivity services in Indian skies through an agreement with Nelco, India's leading satellite communication service provider.

Nelco, a part of the $128 billion Tata Group, is a leading satellite communication service provider in India, providing highly reliable data connectivity solutions across the country for the Enterprise, Aero IFC and Maritime sectors.

"This agreement is a welcome news for Intelsat's airline partners and flyers as they will enjoy end-to-end broadband coverage on domestic and international aircraft flying to or from an Indian airport, as well as aircraft flying over the country," Nelco said in a statement.

Nelco has been offering the Aero IFC services for more than two years with plans to introduce these services to more airlines in collaboration with its global partners. The service is available on Intelsat partner airlines and their passengers on aircraft now, the company added. READ HERE

Meanwhile, Nelco. in its FY22 annual report, had said that the Indian Space sector has been identified as an important sector for growth by the Indian Government. Many new business models and collaborations are emerging, which are likely to provide new opportunities for the Satcom industry. Some of the next-gen technologies are also likely to move into the mainstream.

"The Satcom deployment in ATMs and bank branches will grow further due to expansion of banking infrastructure in the remote areas. Many rural education projects which are in the pipeline, are likely to be rolled out during FY23. The outlook for some of the other enterprise segments like renewable energy and village connectivity looks positive due to an increasing need for reliable pan-India data communication. The Indian Aviation sector is likely to adopt Inflight connectivity services in the next 1-2 years. Similarly, newer segments of domestic Maritime sector are likely to get off the ground in the coming years," it said.

In-line with the global trend, the availability of next generation GEO as well as LEO satellites in the country is also likely to give a boost to the growth of the Satcom industry by increasing its ability to address newer markets and applications at much more competitive price points, the company said.

Technical View
Bias: Positive
Support: Rs 825, Rs 794
Target: Rs 972, Rs 1,025

With today's sharp move, the stock has given a fresh breakout, both, on the daily and weekly chart and is seen trading fairly above the higher-end of the respective Bollinger Bands placed at Rs 825 and Rs 794.

The momentum oscillators too are strongly in favour of the bulls, thus indicating that the prevailing positive trend shall remain intact in short-to-medium term. For now, the above mentioned levels become the immediate support levels for the stock. Break and close below the same, could take the stock towards Rs 770-odd level.

On the positive front, the stock seems headed towards it record high of Rs 972 level hit in October 2021, above which the next target shall be Rs 1,025 - indicates the yearly Fibonacci chart.

(With inputs from Rex Cano)
 

Topics :Buzzing stocksNelcoMarketsInflight Wi-Fi

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