Shares of this smallcap company which is in the business of metals manufacturing, mining, power, healthcare, and agribusiness in Southeast Asia and Africa, were up by 10 percent following the board-approved shares buyback at Rs. 500 per share.
Price Variation
In Wednesday’s session, Nava Limited‘s share price jumped 10.17 percent to a day’s high of Rs.417 per share. The stock has reiterated from a day’s high and was trading at Rs. 413.80 which is 9.33 percent higher than the previous closing price of Rs. 378.50 per share.
It has delivered a return of around 59 percent return in the past year and thus outperformed the Nifty Index.
What happened
Nava stock surged after an exchange filing revealed that the Board has approved the buyback of shares of upto 72,00,000 fully paid equity shares which represents upto 2.48 percent of the total equity shares of the company at a share price of Rs. 500.
The cash consideration for this Buyback will not exceed Rs. 360 crore excluding charges while representing 9.87 percent of total paid-up equity and 5.78 percent of free reserves as per the latest audited standalone and consolidated financial statements ending 31st March 2024.
The event will be conducted through the Tender Offer route on a proportionate basis from the equity shareholders excluding Promoters and its members.
The public announcement, letter of offer and process and timeline of the Buyback Process will be intimated by the company in due accordance.
Record Date & Buyback upside
The record date for the Buyback is set on Friday, February 28, 2025, and Anand Rathi Advisors are appointed as the Manager of the Buyback proceedings. From the Buyback price of Rs. 500 per share, there is a potential upside of upto 20 percent from the current trading price of Rs. 417 per share.
Financial Performance
Looking at the company’s financials for the December 2024 quarter, Nava reported a revenue of Rs.842 crore for Q3FY25, marking a 9.46 percent decline from Rs.930 crore in the same quarter last year. The Profit After Tax (PAT) declined by 24.08 percent to Rs.353 crore, down from Rs.465 crore in the previous year’s quarter.
Revenue Segment
The company earns its revenue from Ferro Alloys which contributes around 14.87 percent, Energy contributes 74.59 percent, Mining contributes around 10.38 percent, and the remaining 0.15 percent from others for the December 2024 quarter.
Company Profile
NAVA Limited was formerly Nava Bharat Ventures Limited, and they do business with operations in India, Africa, and Southeast Asia, while focusing on ferro alloys, mining, power generation, and healthcare.
Written by – Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
