NAVA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Overview

Profitability

PAT improved from ₹97.4 Cr to ₹141 Cr — a 7.59% quarterly growth, showing steady momentum.

EPS: ₹14.9 — decent, though not exceptional given the valuation.

Return Metrics

ROCE: 13.6% and ROE: 10.9% — respectable, indicating efficient capital deployment.

Debt Profile

Debt-to-equity: 0.01 — virtually debt-free, a major strength.

Cash Flow: Not explicitly stated, but low debt and consistent profitability suggest healthy operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 47.8 Richly valued vs. industry average of 31.2 — reflects growth optimism.

P/B Ratio ~5.77 Elevated — justified only if growth sustains.

PEG Ratio –123 Negative — indicates valuation misalignment with earnings growth.

Intrinsic Value Estimated near ₹620–₹650 Current price slightly above fair value — caution advised.

🧠 Business Model & Competitive Advantage

Nava Ltd. is a diversified multinational conglomerate with operations across

Metals: Ferro alloys manufacturing in India, with export-led strategies and cost optimization driving turnaround.

Energy: Operates 434 MW of thermal power in India and a 300 MW integrated thermal plant in Zambia, with Phase-2 expansion and a 100 MW solar project underway

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Mining: Owns Maamba Collieries in Zambia — the country’s largest coal mine concessionaire

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Agribusiness: Commercial ventures in avocado and sugar in Africa — targeting high-margin, export-driven growth

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Emerging Verticals: Exploring critical minerals like lithium and manganese in Zambia and Côte d’Ivoire — aiming for vertical integration

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Its competitive edge lies in geographic diversification, vertical integration, and capital discipline, positioning it as a future-ready enterprise with multi-sector resilience.

📈 Technical & Sentiment Signals

RSI: 64.9 — nearing overbought zone, short-term caution.

MACD: Strongly positive — bullish momentum.

Volume: Below average — suggests mild consolidation.

DMA 50/200: Price well above both — confirms long-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹660–₹690 — near DMA levels and below RSI peak.

Long-Term View: NAVA is a well-diversified, low-debt growth play with strong strategic execution across geographies and sectors. Suitable for long-term holding, especially for investors seeking exposure to energy, mining, and agribusiness themes. Dividend yield of 1.12% adds modest income support.

You can explore Nava’s Annual Report 2024–25 for a deep dive into its strategic roadmap

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or review its financial profile on Screener

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. Let me know if you'd like a comparison with JSW Energy or Vedanta.

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www.navalimited.com

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www.screener.in

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