NIVABUPA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | NIVABUPA | Market Cap | 14,469 Cr. | Current Price | 78.3 ₹ | High / Low | 95.2 ₹ |
| Book Value | 20.6 ₹ | Dividend Yield | 0.00 % | ROCE | 7.45 % | ROE | 8.18 % |
| Face Value | 10.0 ₹ | DMA 50 | 75.3 ₹ | DMA 200 | 76.9 ₹ | Chg in FII Hold | 0.29 % |
| Chg in DII Hold | 0.45 % | PAT Qtr | -87.6 Cr. | PAT Prev Qtr | -35.3 Cr. | RSI | 58.5 |
| MACD | 1.42 | Volume | 4,41,410 | Avg Vol 1Wk | 8,55,186 | Low price | 67.5 ₹ |
| High price | 95.2 ₹ | Debt to equity | 0.07 | 52w Index | 39.0 % | Qtr Profit Var | -762 % |
| EPS | -0.03 ₹ | Industry PE | 31.7 |
📊 Financials: NIVABUPA shows weak fundamentals with ROE at 8.18% and ROCE at 7.45%. EPS is negative (-₹0.03), and quarterly PAT worsened significantly (₹-87.6 Cr vs ₹-35.3 Cr), reflecting deepening losses. Debt-to-equity ratio of 0.07 is low, providing some balance sheet stability, but profitability remains poor. Dividend yield is 0.00%, offering no income support.
💹 Valuation: The stock currently has no meaningful P/E due to losses, making valuation unattractive. Book value of ₹20.6 provides limited intrinsic support. PEG ratio is unavailable, further highlighting weak growth visibility. Compared to industry PE of 31.7, NIVABUPA remains fundamentally weak.
🏭 Business Model: NIVABUPA operates in the insurance sector, with strengths in brand presence and institutional support. Its competitive advantage lies in market positioning, but consistent losses, weak margins, and lack of dividend payouts undermine its overall health.
📈 Entry Zone: Attractive entry would only be near ₹70–₹75, aligning with support levels and limiting downside risk. Current price (₹78.3) is slightly above both 50 DMA (₹75.3) and 200 DMA (₹76.9), suggesting short-term momentum but weak long-term fundamentals. Investors should avoid aggressive accumulation until profitability improves.
Positive
- Low debt-to-equity ratio (0.07).
- Book value of ₹20.6 provides some intrinsic support.
- Institutional inflows with FII (+0.29%) and DII (+0.45%).
Limitation
- Negative EPS (-₹0.03).
- Weak ROE (8.18%) and ROCE (7.45%).
- Consistent quarterly losses (PAT ₹-87.6 Cr vs ₹-35.3 Cr).
- No dividend yield (0.00%).
Company Negative News
- Deepening quarterly losses.
- Weak profitability and negative return metrics.
Company Positive News
- Slight increase in institutional holdings (FII and DII).
- Low leverage provides some financial cushion.
Industry
- Insurance sector remains competitive and capital-intensive.
- Industry PE at 31.7 highlights NIVABUPA’s weak fundamentals.
- Profitability depends on underwriting discipline and claim ratios.
Conclusion
⚖️ NIVABUPA demonstrates weak fundamentals with consistent losses, negative returns, and no dividend support. Entry is only favorable near ₹70–₹75 for speculative investors. Current levels suggest short-term momentum but poor long-term prospects. Holding should be avoided until profitability stabilizes and return metrics improve.