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Nova Iron & Steel Ltd. Stock Analysis

Small Cap
Evaluated by 80 users | BSE: 513566 | NSE: NOVAIRNSTL |
Steel & Iron Products
Nova Iron & Steel was incorporated in the year 1989.  The company is promoted by Nova Magnetics, Nova Electro-Magnetics and Nova Steels, all belonging to R.K. Gambhir and G. K. Gambhir of the Nova RG group. The registered office is at Dagori village, Belha tehsil, Bilaspur - 495224,...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Jun'10Jun'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed -21.59%-18.01%-18.51%0.32%12.72%-1.24%-0.78%3.3%2.85%-0.61%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 117896.612153.29.115.653.319.63.6
Y-o-Y Gr. Rt.--93.2%1107.4%25.7%-56.2%-82.9%70.9%241.7%-63.2%-81.6%
Adjusted EPS (Rs.) -0.47-0.57-1.4-1.321.93-1.7-1.620.720.63-0.61
Y-o-Y Gr. Rt.-NANANANA-188.1%NANA-12.5%-196.8%
Book Value per Share (Rs.) 2.112.832.396.538.467.916.597.38.158.34
Adjusted Net Profit -7.1-8.5-21.1-4.87-6.1-5.92.62.3-2.2
Net Op. Cash Flow (Rs. Cr.) 2-5-70.134.8860.612.733.3-2.9-48.3
Debt to Cash Flow from Ops 0.18-0.08-1.392.220.91314.3315.165.95-81.46-7
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Nova Iron & Steel Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -32.1%-41.6%-38.6%-81.6%
Adjusted EPS NA-179.4%NA-196.8%
Book Value per Share 16.5-0.38.22.3
Share Price -11.8% -10.6% -21.8% 4.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'10Jun'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) -22.32-19.92-43.64-18.3925.74-20.72-22.3210.48.16-7.38
Operating Profit Margin (%) -3.48-69.4-21.564.5134.94-5.196.719.6143.27-92.88
Net Profit Margin (%) -6.08-106.54-21.87-3.9413.11-67.19-37.514.911.62-61
Debt to Equity 0.010.012.583.282.5568.097.498.1211.22
Working Capital Days 565321521271859997811984656,028
Cash Conversion Cycle 232347264-29-50115542-352,200
Entity Percentage Holding
Promoters 69.81%
Institutions 1.32%
Non-Institutions 28.87%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Nova Iron & Steel's performance infers:

Nova Iron & Steel earnings have declined by -179.4%, whereas share price has depreciated -10.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Nova Iron & Steel share prices over the last 10 years. Here is what we found out:

Nova Iron & Steel share price has depreciated -11.4% annually over the past ten years.

Nova Iron & Steel was incorporated in the year 1989.  The company is promoted by Nova Magnetics, Nova Electro-Magnetics and Nova Steels, all belonging to R.K. Gambhir and G. K. Gambhir of the Nova RG group. The registered office is at Dagori village, Belha tehsil, Bilaspur - 495224, Chattisgarh.

The company engages in the manufacture and sale of sponge iron in India. The company also provides product separation, screening, and storage facilities. During

Nova Iron & Steel was incorporated in the year 1989.  The company is promoted by Nova Magnetics, Nova Electro-Magnetics and Nova Steels, all belonging to R.K. Gambhir and G. K. Gambhir of the Nova RG group. The registered office is at Dagori village, Belha tehsil, Bilaspur - 495224, Chattisgarh.

The company engages in the manufacture and sale of sponge iron in India. The company also provides product separation, screening, and storage facilities. During the year 1993-94, the company came out with a public issue of 5, 27, 00,000 equity shares of Rs 10 each for cash to part finance their sponge iron project at Bilaspur, Madhya Pradesh. In July 15, 1994, the company inaugurated the sponge iron plant at Bilaspur. In September 26, 1994, they started trial production.

The company entered into agreement with Nova Steels (India) for the supply of entire production of sponge iron. During the year 1994-95, the company started selling their products in the market. The company’s project is one of the initial coal-based Sponge Iron Projects in India with the Technical knowhow from Lurgi Chemie MetaHurgie Industriebau GmbH, Germany.  The company was declared a sick industrial unit by the Board for Industrial and Financial Reconstruction (BIFR) vide its order dated June 23, 1998 and continues to be registered with BIFR.

The entire one-time settlement amount has been paid off, and there are no secured loans and thus no interest burden now. The company has started generating profits and the management is focusing on an expansion plan.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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