⚠ 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.
NIVABUPA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | NIVABUPA | Market Cap | 13,239 Cr. | Current Price | 71.6 ₹ | High / Low | 95.2 ₹ |
| Book Value | 20.6 ₹ | Dividend Yield | 0.00 % | ROCE | 7.45 % | ROE | 8.18 % |
| Face Value | 10.0 ₹ | DMA 50 | 74.9 ₹ | DMA 200 | 77.5 ₹ | Chg in FII Hold | -0.41 % |
| Chg in DII Hold | 0.73 % | PAT Qtr | -87.6 Cr. | PAT Prev Qtr | -35.3 Cr. | RSI | 39.2 |
| MACD | -1.46 | Volume | 26,12,947 | Avg Vol 1Wk | 60,13,904 | Low price | 61.0 ₹ |
| High price | 95.2 ₹ | Debt to equity | 0.07 | 52w Index | 30.9 % | Qtr Profit Var | -762 % |
| EPS | -0.03 ₹ | Industry PE | 33.4 |
📊 Financials
- Revenue & Profitability: PAT worsened from -₹35.3 Cr. to -₹87.6 Cr., showing deep losses. EPS at -₹0.03 reflects negative earnings.
- Margins & Returns: ROCE (7.45%) and ROE (8.18%) are weak, reflecting poor efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.07 indicates low leverage, ensuring manageable risk.
- Cash Flow: Weak due to sustained losses, though low debt provides some cushion.
💹 Valuation
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: ~3.47 (Price ₹71.6 / Book Value ₹20.6) → Expensive on book value basis.
- PEG Ratio: Not meaningful due to negative earnings.
- Intrinsic Value: Current price reflects distress valuation, with limited upside unless profitability improves.
🏢 Business Model & Competitive Advantage
- Niva Bupa operates in health insurance, benefiting from rising demand for healthcare coverage in India.
- Competitive advantage lies in brand recognition and distribution network, but profitability remains a challenge.
- No dividend yield, reflecting reinvestment focus and losses.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹60–65 range (close to 52W low of ₹61.0), given current losses.
- Long-Term Holding: High-risk investment. Suitable only for speculative investors betting on turnaround. Conservative investors should avoid until profitability stabilizes.
✅ Positive
- Low debt-to-equity ratio (0.07) ensures financial safety.
- DII holdings increased (+0.73%), showing domestic institutional support.
- Health insurance industry has long-term growth potential.
⚠️ Limitation
- Negative earnings and weak ROCE/ROE.
- No dividend yield reduces attractiveness for income investors.
- P/B ratio (~3.47) is expensive relative to fundamentals.
📉 Company Negative News
- PAT worsened significantly compared to previous quarter.
- FII holdings reduced (-0.41%), showing cautious foreign sentiment.
- MACD at -1.46 indicates bearish technical momentum.
📈 Company Positive News
- DII holdings increased (+0.73%), reflecting domestic institutional confidence.
- RSI at 39.2 indicates oversold territory, potential for rebound.
🏭 Industry
- Health insurance industry benefits from rising healthcare costs, government initiatives, and increasing awareness.
- Industry PE at 33.4 suggests peers are profitable, highlighting Niva Bupa’s relative weakness.
🔎 Conclusion
- Niva Bupa is currently loss-making with weak fundamentals and negative return ratios.
- Valuation above book value reflects market optimism, but profitability challenges limit upside.
- Best strategy: Avoid aggressive buying. Speculative investors may accumulate near ₹60–65 range, while long-term conservative investors should wait for profitability improvement.