⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NAVA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | NAVA | Market Cap | 15,166 Cr. | Current Price | 534 ₹ | High / Low | 735 ₹ |
| Stock P/E | 34.0 | Book Value | 132 ₹ | Dividend Yield | 1.50 % | ROCE | 13.6 % |
| ROE | 10.9 % | Face Value | 1.00 ₹ | DMA 50 | 563 ₹ | DMA 200 | 560 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | -0.08 % | PAT Qtr | 157 Cr. | PAT Prev Qtr | 141 Cr. |
| RSI | 42.7 | MACD | -5.61 | Volume | 3,36,789 | Avg Vol 1Wk | 3,02,874 |
| Low price | 356 ₹ | High price | 735 ₹ | PEG Ratio | -87.2 | Debt to equity | 0.00 |
| 52w Index | 47.0 % | Qtr Profit Var | 8.90 % | EPS | 15.6 ₹ | Industry PE | 25.6 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved from 141 Cr. to 157 Cr. (+8.9%), showing moderate earnings growth. EPS at 15.6 ₹ reflects fair profitability.
- Margins: ROCE at 13.6% and ROE at 10.9% are modest, indicating average efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.00 highlights a debt-free balance sheet, strengthening financial resilience.
- Cash Flow: Dividend yield of 1.50% provides steady shareholder returns, though not very high.
💹 Valuation Indicators
- P/E Ratio: 34.0 vs Industry PE of 25.6 → Overvalued compared to peers.
- P/B Ratio: Current Price (534 ₹) / Book Value (132 ₹) ≈ 4.0 → Premium valuation.
- PEG Ratio: -87.2 → Negative, suggesting weak growth prospects relative to price.
- Intrinsic Value: Current price trades above fair value, limiting near-term upside.
🏭 Business Model & Competitive Advantage
- NAVA operates in diversified businesses including ferro alloys, energy, and mining, benefiting from global commodity demand.
- Debt-free operations provide financial stability and resilience.
- Moderate profitability and efficiency metrics limit competitive strength compared to peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 450 ₹ – 480 ₹, closer to support levels and below DMA 200.
- Long-Term Holding: Suitable for investors seeking exposure to commodities and energy. Staggered buying recommended due to high valuations and weak growth indicators.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Quarterly PAT growth (+8.9%) shows earnings momentum.
- Dividend yield of 1.50% provides steady income.
⚠️ Limitation
- High P/E (34.0) and P/B (4.0) ratios indicate stretched valuations.
- ROE (10.9%) and ROCE (13.6%) are modest compared to peers.
- Negative PEG ratio (-87.2) signals poor growth prospects.
📉 Company Negative News
- FII holding decreased by 0.02%, showing reduced foreign investor confidence.
- DII holding decreased by 0.08%, reflecting lower domestic institutional support.
📈 Company Positive News
- Quarterly PAT rose from 141 Cr. to 157 Cr.
- Debt-free operations strengthen financial resilience.
- Dividend yield of 1.50% supports shareholder value.
🌐 Industry
- Commodities and energy sector benefits from global demand and infrastructure growth.
- Industry PE at 25.6 suggests NAVA trades at a premium, reflecting investor expectations despite modest fundamentals.
🔎 Conclusion
NAVA demonstrates financial stability with debt-free operations and moderate profitability. However, high valuations, modest return ratios, and weak growth prospects limit near-term upside. Investors may consider entering around 450–480 ₹ for long-term holding, with staggered buying to manage risks in the cyclical commodities sector.
I can also outline technical support and resistance zones using RSI, MACD, and DMA data to complement this fundamental analysis if you’d like.