⚠ 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: 2.2
| Stock Code | NIVABUPA | Market Cap | 14,343 Cr. | Current Price | 77.5 ₹ | High / Low | 95.2 ₹ |
| Book Value | 0.00 ₹ | Dividend Yield | 0.00 % | ROCE | 7.45 % | ROE | 8.18 % |
| Face Value | 10.0 ₹ | DMA 50 | 76.9 ₹ | DMA 200 | 78.5 ₹ | Chg in FII Hold | -0.41 % |
| Chg in DII Hold | 0.73 % | PAT Qtr | -87.6 Cr. | PAT Prev Qtr | -35.3 Cr. | RSI | 52.2 |
| MACD | 0.47 | Volume | 7,52,223 | Avg Vol 1Wk | 17,46,833 | Low price | 61.0 ₹ |
| High price | 95.2 ₹ | 52w Index | 48.2 % | Qtr Profit Var | -762 % | EPS | -0.03 ₹ |
| Industry PE | 33.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT worsened from -35.3 Cr. to -87.6 Cr. (-762% variation), showing significant losses. EPS at -0.03 ₹ reflects negative earnings.
- Margins: ROCE at 7.45% and ROE at 8.18% are weak, indicating poor efficiency and profitability.
- Debt: Debt-to-equity ratio not disclosed, but financial stress is evident given recurring losses.
- Cash Flow: Dividend yield of 0.00% shows no shareholder payout, reflecting weak cash generation.
💹 Valuation Indicators
- P/E Ratio: Not applicable due to negative earnings.
- P/B Ratio: Not meaningful as book value is reported at 0.00 ₹.
- PEG Ratio: Not available, as growth metrics are negative.
- Intrinsic Value: Current price (77.5 ₹) reflects market skepticism; upside depends on turnaround in profitability.
🏭 Business Model & Competitive Advantage
- Niva Bupa operates in health insurance, a sector with strong long-term demand potential.
- Brand presence and partnerships provide some competitive advantage.
- However, recurring losses and weak return metrics undermine overall health.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Risk-tolerant investors may consider accumulation between 60 ₹ – 65 ₹, closer to support levels.
- Long-Term Holding: High-risk investment; only suitable if turnaround strategies materialize. Conservative investors should avoid until profitability stabilizes.
✅ Positive
- DII holding increased by 0.73%, showing domestic institutional support.
- Sectoral demand for health insurance remains strong in India.
⚠️ Limitation
- Negative EPS (-0.03 ₹) reflects losses.
- ROCE (7.45%) and ROE (8.18%) are weak compared to peers.
- No dividend yield, limiting shareholder returns.
📉 Company Negative News
- Quarterly PAT dropped further to -87.6 Cr. from -35.3 Cr.
- FII holding decreased by 0.41%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII inflows (+0.73%) highlight domestic institutional interest.
- Strong brand presence in health insurance provides long-term potential.
🌐 Industry
- Health insurance sector benefits from rising awareness, regulatory support, and increasing healthcare costs.
- Industry PE at 33.2 highlights profitability of peers, contrasting with Niva Bupa’s weak financials.
🔎 Conclusion
Niva Bupa demonstrates weak fundamentals with recurring losses, poor return ratios, and no dividend yield. While the health insurance sector offers long-term growth potential, the company’s financial stress makes it a high-risk investment. Investors may consider entry around 60–65 ₹ only if willing to tolerate volatility, with long-term holding dependent on a successful turnaround in operations.
I can also outline technical support and resistance zones using RSI, MACD, and DMA data to complement this fundamental analysis if you’d like.