⚠ 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: 3.8
| Stock Code | NAVA | Market Cap | 15,968 Cr. | Current Price | 563 ₹ | High / Low | 735 ₹ |
| Stock P/E | 30.0 | Book Value | 132 ₹ | Dividend Yield | 1.42 % | ROCE | 13.6 % |
| ROE | 10.9 % | Face Value | 1.00 ₹ | DMA 50 | 565 ₹ | DMA 200 | 562 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | -0.08 % | PAT Qtr | 136 Cr. | PAT Prev Qtr | 157 Cr. |
| RSI | 50.6 | MACD | -2.53 | Volume | 2,31,666 | Avg Vol 1Wk | 2,91,833 |
| Low price | 396 ₹ | High price | 735 ₹ | PEG Ratio | -77.0 | Debt to equity | 0.00 |
| 52w Index | 49.2 % | Qtr Profit Var | 169 % | EPS | 18.7 ₹ | Industry PE | 30.0 |
📊 Financials
- Revenue & Profitability: PAT declined from ₹157 Cr. to ₹136 Cr., showing earnings pressure. EPS at ₹18.7 is modest relative to valuation.
- Margins & Returns: ROCE (13.6%) and ROE (10.9%) are moderate, reflecting average efficiency.
- Debt: Debt-to-equity ratio of 0.00 → debt-free, ensuring financial stability.
- Cash Flow: Stable due to debt-free structure, though profitability remains inconsistent.
💹 Valuation
- P/E Ratio: 30.0 vs Industry PE of 30.0 → Fairly valued compared to peers.
- P/B Ratio: ~4.26 (Price ₹563 / Book Value ₹132) → Slightly expensive on book value basis.
- PEG Ratio: -77.0 → Negative, indicating poor growth prospects relative to valuation.
- Intrinsic Value: Current price appears fairly valued, with limited upside unless earnings improve.
🏢 Business Model & Competitive Advantage
- Nava operates in diversified businesses including ferro alloys, energy, and mining, benefiting from commodity demand cycles.
- Competitive advantage lies in diversification and debt-free balance sheet.
- Dividend yield of 1.42% provides modest shareholder returns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹500–540 range (close to DMA 200 at ₹562 and below current levels).
- Long-Term Holding: Suitable for cautious investors seeking exposure to diversified commodities. Accumulation should be conservative due to weak growth metrics.
✅ Positive
- Debt-free balance sheet ensures financial safety.
- Dividend yield of 1.42% supports investor confidence.
- FII holdings stable (-0.02% change), showing foreign investor interest remains intact.
⚠️ Limitation
- Negative PEG ratio (-77.0) highlights poor growth prospects.
- ROE (10.9%) and ROCE (13.6%) are moderate compared to peers.
- Quarterly profit decline signals near-term weakness.
📉 Company Negative News
- PAT dropped compared to previous quarter.
- DII holdings reduced (-0.08%), showing cautious domestic sentiment.
- MACD at -2.53 indicates bearish technical momentum.
📈 Company Positive News
- Debt-free balance sheet provides strong financial stability.
- Dividend yield remains attractive at 1.42%.
- RSI at 50.6 indicates neutral momentum, potential for consolidation.
🏭 Industry
- Commodities and energy industry benefits from global demand cycles and infrastructure growth.
- Industry PE at 30.0 suggests valuations are aligned, making Nava fairly valued.
🔎 Conclusion
- Nava is financially stable with a debt-free balance sheet and modest dividend yield.
- However, weak growth prospects, moderate returns, and profit decline limit aggressive upside.
- Best strategy: Accumulate cautiously near ₹500–540 range for long-term holding, while avoiding aggressive buying at current levels.