NAVA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

NAVA Ltd. (formerly Nava Bharat Ventures) presents a compelling investment case with strong financial metrics, low leverage, and reasonable growth-based valuation. It's a diversified player with exposures in power, ferro alloys, and more recently, global coal operations.

📊 Core Financials Analysis

ROCE: 17.2%, ROE: 15.0% — solid return metrics, reflecting efficient capital usage and decent net profitability.

EPS: ₹37.6 — supports valuation and signals robust earning capability.

PAT Trend

Slight dip from ₹253 Cr. to ₹235 Cr. (QoQ), yet +13.7% quarterly profit variation signals a strong YoY trend.

Debt-to-equity: 0.12 — near negligible leverage, allowing flexibility for expansion and cushioning against interest risk.

Dividend Yield: 1.33% — modest, but consistent with reinvestment-driven businesses.

📈 Valuation Metrics

Metric Value Comment

P/E Ratio 16.1 Reasonable, given EPS and industry benchmark

P/B Ratio ~2.3 Slightly elevated; justified by earnings momentum

PEG Ratio 0.66 Suggests value with growth visibility

Book Value ₹262 Strong tangible support; current price ~2.3x book

Verdict: Moderately undervalued. Growth-priced fairly, with ample upside if operational efficiencies continue.

🏭 Business Model & Strategic Positioning

Diverse segments

Ferro alloys, thermal power generation, and Zambia coal mining (Maamba Collieries)—gives insulation across commodities and geographies.

Competitive advantage lies in

Integrated energy and mining strategy

Asset-light expansions, improving ROCE despite sector challenges

Key risks: global commodity cycles, ESG mandates on coal, and fluctuations in export-linked income.

📉 Technical Indicators

RSI: 53.8 — stable; no signs of overbought or oversold.

MACD: 13.1 — strong bullish momentum.

Price trades above DMA 50 & 200, showing ongoing medium-term strength.

Volume below 1-week average — signals possible short-term pause or accumulation phase.

🎯 Entry Zone & Investment Outlook

Suggested Entry Range: ₹570–₹600 — near 50-DMA; potential breakout if volume picks up.

Investment Horizon

Suitable for medium- to long-term holding (2–3 years).

Combines value with commodity exposure and stable power-linked earnings.

Monitor export volumes, Zambian operations' profitability, and power pricing environment.

Want to weigh NAVA against peers like Jindal Steel, JSW Energy, or even Vedanta for a broader diversified energy-metals basket? Let’s dial in your portfolio mix. 🔍⚙️📈

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