The power generation industry is crucial for global energy supply, with a total installed capacity of 416,059 MW in India as of FY24. The sector is dominated by coal (49.3%) and renewable sources (30.2%), reflecting a significant shift towards cleaner energy solutions amid rising demand for electricity.
With a market capitalization of Rs 18,458.38 crore, the shares of Nava Ltd closed at Rs 1,175.45 per share, decreasing around 3.34 percent as compared to the previous closing price of Rs 1,216.05 apiece.
Stock Performance
In the previous six months, the stock has delivered multi-bagger returns of nearly 151.36 percent, while around 185 percent in a year. So far in 2024, it has given about 162.92 percent of multi-bagger returns.
The stock has delivered multi-bagger returns of around 1800 percent over four years, spanning from Rs. 62 in Jan 2021 to the current stock price level of Rs. 1,175.20 apiece.
This indicates that if an investor had invested Rs. 100,000 in the stock four years ago, it would have gained to nearly Rs.19 lakhs.
Financial performance:-
Examining the company’s financial condition, revenue ramped up by 17 percent from Rs 1,042 crore in Q1FY24 to Rs 1,222 crore in Q1FY25, during the same time frame net profit jumped significantly by 30 percent from Rs 343 crore to Rs 446 crore.
The company achieved its highest-ever quarterly income of Rs 1,258.4 crores, a 16.7% year-on-year increase. Profit before tax hit a record Rs 530.8 crores, up 27.6% from the previous year, driven by strategic efforts in operational efficiency and cost optimization.
Guidance and Strategic Focus:
The company plans to conduct exploration activities in Ivory Coast and on its recently acquired lithium assets. Expected revenue from avocado products in the next financial year is projected at USD 3-4 million, with peak revenue anticipated from 2027-28.
The company remains focused on sectors phasing out over the next 20-30 years, preserving cash reserves for potential new verticals.
Expansion and Investment Plans:-
Nava Limited is ramping up coal sales from its Maamba Energy Limited (MEL) plant in Zambia and plans to invest $100 million over three years, focusing on Ferro Alloys and Energy verticals. MEL will add a 300 MW power plant, expected to be completed in 2-2.5 years.
The company is also diversifying into agriculture and healthcare while pursuing organic and inorganic growth. With a focus on operational efficiency and cost optimization, Nava Limited plans to shift its energy business from coal-fired generation to more sustainable processes, ensuring long-term profitability and strategic growth.
Company profile:-
NAVA Limited principally manufactures and sells ferroalloys, generates electricity, and provides operation and maintenance services for power assets. The company’s segments include Ferro Alloys (FAP), Power, and Mining.
Written by:- Abhishek Singh
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