NAVA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

📊 Fundamental Analysis: Nava Ltd. (NAVA)

Nava Ltd. presents a solid mid-cap opportunity with decent growth metrics, improving institutional interest, and moderate valuations. While not as deep-value as some PSUs, it offers a diversified business model and consistent profitability.

Metric Value Implication

P/E Ratio 16.1 Reasonable vs. industry PE of 41.2 — undervalued but not deep value

PEG Ratio 0.66 Attractive — growth is moderately underpriced

ROE / ROCE 15.0% / 17.2% Healthy — indicates efficient capital use, though not exceptional

Dividend Yield 1.33% Modest — not a primary income play

Debt-to-Equity 0.12 Low leverage — financially sound

EPS ₹37.6 Strong — supports valuation and growth

Profit Growth (QoQ) -7.1% Slight decline — needs monitoring

📈 Technical & Trend Analysis

Current Price: ₹604

DMA 50 / DMA 200: ₹569 / ₹489 — bullish trend continuation

RSI: 53.8 — neutral to slightly bullish

MACD: +13.1 — strong momentum

Volume: Below average — suggests consolidation or quiet accumulation

✅ Long-Term Investment Potential

Yes — moderately attractive. Nava Ltd. is a good candidate for long-term investment, especially for growth-oriented investors. It’s not a deep-value play, but its PEG ratio and improving institutional interest suggest upside potential.

🎯 Ideal Entry Price Zone

Buy Zone: ₹560–₹590

Near 50-DMA and below recent highs

Accumulate on dips, especially if PEG remains <0.8 and ROE >14%

Avoid chasing above ₹640 unless earnings growth accelerates

🧭 Exit Strategy & Holding Period

If you're already holding

Holding Period: 2–3 years — to capture growth and potential re-rating

Exit Strategy

Partial Exit near ₹670–₹690 if P/E exceeds 22 and PEG crosses 1

Hold if ROCE improves toward 20% and dividend yield increases

Reassess if PAT growth stagnates or ROE drops below 12%

Would you like a side-by-side comparison with similar mid-cap industrials or a dividend yield screen to complement this holding?

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