Mehabe score: 3 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Nava Bharat Ventures Ltd was established in 1972 as an Indian ferro alloys manufacturer, Nava Bharat is now a multinational company, operating in India, South East Asia and Africa with businesses in metals manufacturing, power, mining, agribusiness and healthcare. #
Main Points
Captive Power for Ferro Alloy facilities
The Company’s Ferro Alloys facilities are supported by captive power from its own power plants giving them certain inherent advantages in terms of availability of power and control on costs.Site:NBVENTURES
Market Cap:
Rs 1,800 cr
Price:
121.0
Trading pe:
4.18x
Book-value:
289/share
Div yield:
1.24 %
Earning yield:
24.11%
Face-value:
2.00/share
52week high:
126.00
52week low:
37.10
Technical Analysis
Stock trades at 121.0, above its 50dma 89.1. It also trades above its 200dma 71.29. The stock remains bullish on techicals
The 52 week high is at 126.00 and the 52week low is at 37.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 0.42 times its book value
– has delivered good profit growth of 18.90% CAGR over last 5 years
-Promoter holding has increased by 1.42% over last quarter.
Weakness
– Tax rate seems low
– has a low return on equity of 9.20% for last 3 years.
– has high debtors of 290.21 days.
Competition
– The industry trades at a mean P/E of 97.6x. Quess Corp trades at the industry’s max P/E of 259.45x. NBVENTURES trades at a P/E of 4.18x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 6.0. NBVENTURES has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 19.8%. The max 1- month return was given by Quess Corp: a return of 31.76 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 689.0 cr compared to Rs 809.0 cr for period ended Mar 2020, a fall of 14.8%
Operating Profits reported at Rs 256.0 cr for period ended Mar 2021 vis-vis 238.0 for period ended Mar 2020 .
Operating Margins expanded 773.6 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 8.59 compared to Rs 6.72 for previous quarter ended Dec 2020 and Rs 8.11 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2548.0 cr for period ended Mar 2021 vis-vis sales of Rs 2759.0 cr for the period ended Mar 2020, a fall of 8.3%. The 3 year sales cagr stood at 2.8%.
Operating margins shrank to 42.0% for period ended Mar 2021 vis-vis 43.0% for period ended Mar 2020, contraction of 100.0 bps.
Net Profit reported at Rs 423.0 cr for period ended Mar 2021 vis-vis sales of Rs 395.0 cr for the period ended Mar 2020, rising 6.6%.
Company recorded a healthy Net Profit CAGR of 21.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 216% on a 1 Year basis vis-vis a return of -6% over the last 3 Years. – The compounded sales growth on a TTM bassis is -1% vis-vis a compounded sales growth of 27% over the last 3 Years. – The compounded profit growth on a TTM basis is 46% vis-vis a compounded profit growth of 111% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Mar 2021. The Mar 2021 fii holding stood at 2.25% vis-vis 6.83% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 51.93% vis-vis 41.44% for Dec 2020
Conclusion
– has reduced debt.
-Stock is trading at 0.42 times its book value
– has delivered good profit growth of 18.90% CAGR over last 5 years
-Promoter holding has increased by 1.42% over last quarter. – Tax rate seems low
– has a low return on equity of 9.20% for last 3 years.
– has high debtors of 290.21 days.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 89.1 and is trading at 121.0, thus bullish price action wise.
