Check Before You Invest : Nava Ltd

Snapshot

Q.1 Which industry/sub-sector does Nava Ltd belong to?

Nava Ltd belongs to the Metals & Mining sector, operating specifically within the Ferro & Silica Manganese segment.

Q.2 Is Nava Ltd a good quality company?

Nava Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Nava Ltd undervalued or overvalued?

Nava Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Nava Ltd a good buy now?

Nava Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Nava Ltd?

Nava Ltd revenue growth is 9.8% for FY-2025, which is above its 5-year CAGR of 8.34%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Nava Ltd?

Nava Ltd Return on capital employed is 14.49% for FY-2025, which is above its 5-year historical median of 11.34%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Nava Ltd?

Nava Ltd Return on Asset is 10.8%, which is above its 5-year historical median of 8.32%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Nava Ltd?

Nava Ltd Return on equity is 11.65% for FY-2025, which is above its 5-year historical median of 9.39%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Nava Ltd?

Nava Ltd Cash conversion cycle is 147 days, above its 5-year historical median of 133 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.41	0.41
ROE	11.65	9.39
ROCE	14.49	11.34
Cash Conversion Cycle	147 days	133 days

Q.6 Gross Profit margin of Nava Ltd?

Nava Ltd Gross profit margin which is the profit after deduction of direct costs, is 34.8% for FY-2025, which is above its 5-year median of 26.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Nava Ltd?

Nava Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.44% for FY-2025, which is in line with its 5-year median of 23.75% indicating stable margins.

Q.8 Net Profit Margin of Nava Ltd?

Nava Ltd Net Profit Margin is 26.27% for FY-2025, is above with its 5-year median of 20.05%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	34.8	26.6
Operating Profit Margin	23.44	23.75
Net Profit Margin	26.27	20.05

Q.9 Debt to Equity ratio of Nava Ltd?

Nava Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Nava Ltd?

Nava Ltd Debt to cash flow from operations is 0.11, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nava Ltd?

Promoters hold 50.11% of the Nava Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Nava Ltd vs industry peers?

Nava Ltd revenue CAGR is 8.34%, compared to the industry median CAGR of 2.66%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9.8	2.7
Gross Profit Growth	72.1	21.8
Operating Profit Growth	48.2	13.5
Net Profit Growth	94	25

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.41	0.9
ROE	11.65	5.9
ROCE	14.49	4.82
Cash Conversion Cycle (days)	147.42	59

Valuation & price assessment

Q.1 Stock return of Nava Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 33.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	33.2%	75.2%	80.9%	58%

Q.3 Valuation ratios of Nava Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	36.09	28.12	16.73
Price to Book	4.94	1.66	1.41
Price to Sales	10.37	3.98	1.02
EV to EBITDA	28.88	18.21	5.56

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