PINC has maintained buy rating on Nava Bharat Venture with target price of Rs 340 in its June 04, 2008. "Nava Bharat Ventures Ltd. (NBVL) reported a YoY net sales growth of 89% to Rs 3.4 billion for Q4FY08. This was mainly on back of a 140% YoY rise in the revenues of its ferro alloy division. Power segment revenues also increased by 55% YoY. The OPM for the period witnessed a substantial 2,000bps jump to 46.4%, as NBVL capitalised on the unprecedented boom in the ferro alloy cycle. This led to around three fold jump in both operating profit and the net profits to Rs 1.6 billion and Rs 1.3 billion respectively."
"At the CMP of Rs270, the stock is trading at a P/E of 4.8x and EV/EBIDT of 3.8x its FY09E earnings. These, we believe are very attractive valuations for a company with very robust business model and effectively ‘Zero Debt’ . Moreover if ferro alloys continue to trade at these levels for entire FY09 (a strong possibility), then NBVL’s profitability could increase substantially. Hence, we initiate coverage with ‘BUY’ recommendation on the stock with a 12- month price target of Rs340" according to PINC report.
"At the CMP of Rs270, the stock is trading at a P/E of 4.8x and EV/EBIDT of 3.8x its FY09E earnings. These, we believe are very attractive valuations for a company with very robust business model and effectively ‘Zero Debt’ . Moreover if ferro alloys continue to trade at these levels for entire FY09 (a strong possibility), then NBVL’s profitability could increase substantially. Hence, we initiate coverage with ‘BUY’ recommendation on the stock with a 12- month price target of Rs340" according to PINC report.
*****Moneybazzar's 12 month Target for Nava Bharat Venture Rs. 500+
