📌 At a Glance
Nava Ltd has come a long way from being a desi ferro alloys maker to owningZambia’s largest coal mine and power plant. It runs a ₹4,000 Cr business with 46% EBITDA margins, and has given a wild 86% stock CAGR over 3 years. But while profits doubled, revenue barely moved. So… is this a deep-value PSU proxy or an earnings mirage?
1️⃣ Business Model – Power, Ferro, Africa
Nava is essentially three businesses:
- India Power (434 MW):Telangana, Odisha, and AP thermal plants
- Zambia Power (300 MW):65% stake in Maamba Collieries Ltd
- Ferro Alloys:Paloncha & Odisha plants
FY25 Segment Split:
- Energy:75%
- Metals & Alloys:~20%
- Others (Agri, Healthcare):Negligible
🔌 Power is the core. 70% of Indian power is under long-term
PPAs. The Zambia unit is vertically integrated — owns the coal mine and sells power to the government.
2️⃣ Financials – Profits Up, Sales Not So Much
| Metric | FY25 | YoY Change |
|---|---|---|
| Revenue | ₹3,984 Cr | +4% |
| Net Profit | ₹1,434 Cr | +14% |
| EBITDA Margin | 46% | Stable |
| ROCE | 17.2% | Strong |
| EPS | ₹37.61 | Up |
💡3-Year Sales CAGR:6%💡3-Year PAT CAGR:24%💡Stock CAGR (3Y):86% — yes, this is not a typo
So what’s fuelling the market hype? Simple: margins and Zambia.
3️⃣ Valuation – Still Reasonable?
- Market Cap:₹16,430 Cr
- P/E:15
- P/B:2.2
- EV/EBITDA:~7x
- Dividend Yield:0.35%
🧠Fair Value Range (EduEstimate): ₹600–700Assumes ₹1,500 Cr PAT at 15–17x P/E, given power +
