NAVA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.7

📊 Financial Overview

• Profitability: PAT at ₹141 Cr, up from ₹97.4 Cr QoQ; EPS at ₹14.9
• Margins: ROCE at 13.6%, ROE at 10.9% — decent but not industry-leading
• Debt Profile: Debt-to-equity ratio of 0.01 — virtually debt-free
• Dividend Yield: 1.29% — modest income return

📈 Valuation Metrics

• P/E Ratio: 41.4 — above industry average of 30.9
• P/B Ratio: ~5.0 — premium valuation relative to book value ₹124
• PEG Ratio: -106 — negative due to inconsistent earnings growth
• Intrinsic Value: Estimated around ₹580–₹600 based on earnings and sector multiples

🏢 Business Model & Competitive Edge

• Core Operations: NAVA Ltd operates in ferro alloys, energy, and healthcare, with a growing presence in international markets
• Moat: Diversified business model, cost-efficient energy operations, and export-driven alloy segment
• Growth Drivers: Demand for ferro alloys, expansion in healthcare, and global energy contracts

📌 Entry Zone Recommendation

• Suggested Entry: ₹580–₹600 — near intrinsic value and below DMA50
• Technical Indicators: RSI at 41.4 (neutral), MACD negative — short-term weakness, long-term opportunity

📈 Long-Term Holding Guidance

• Hold for long-term if accumulated near support; monitor margin trends and international expansion
• Valuation is slightly stretched; accumulation should be cautious

✅ Positive

• Debt-free with diversified revenue streams
• FII and DII holdings increased
• Quarterly profit growth of 7.59%

⚠️ Limitation

• High P/E and negative PEG ratio
• MACD indicates short-term bearish trend
• Trading below DMA50 with weak volume

📰 Company Negative News

• Q2 FY26 margin pressure due to higher input costs in alloy segment

🌟 Company Positive News

• Healthcare segment reported 18% YoY growth; international energy contracts expanded

🏭 Industry

• Industrial conglomerates industry P/E at 30.9 — NAVA trades at a premium
• Sector driven by infrastructure demand, export growth, and energy transition

🧾 Conclusion

• NAVA is a diversified, debt-free company with solid fundamentals and global exposure
• Accumulate near support zones for long-term growth; monitor valuation and margin trends