Nava Bharat Ventures is on research radar of brokerages now. Another brokerage has reviewed the results and given a target of Rs.600. Stock as said earlier, is a strong candidate for rerating. Buy.
A stock achieves a higher PE band or is rerated , when the book value of the stock goes on increasing , NBV`s book value as on 31.3.2009 was 160 , now it will become 160+70 (eps for current year) = 230, i think most optimistic valuation can be 4 times book, ie 230 * 4 = 920... in which case the PE will expand to 13 times, and the dividend yeild should also come near 1% , so if we expect Rs10 dividend this time the price should be Rs.1000
The valuation of stock and its target price of Rs.920 worked out is very much achievable as future of the company seems bright with very good cash flows coming in. The cash flows in coming years will going to increase further from the present level. By all sense its highly undervalued and will outperform in good markets.
Hai, Mr.vyankatesh,
You are correctly stated the real worth of the Nava Bharat Ven. And the same view of this company stating by me from the last few months. What fantastic company is this one?. When so many worthless companies are trading in the high level without any fundamental, why don`t this company?. Certainly it will shoot up at least Rs.600 soon because its fundamental is like so. Nobody can stop its raising because it is the only raising sun has undervalued at present. So it is the right time to buy those who are missed the same. Investors accumulate like anything because it is more than goldmine. Kindly refer the message of this company which I have given in number of times previously. By-sathiyanvimalan.
Stock is a marketperformer. If market goes up then certainly it will also move up. Till that time it will languish on this level only. However, future of power and mining companies is quite bright in near future and onwards. The sector itself will have a bias of institutions and funds being infrastructure in nature.
there is a meeting on 28th november on esops allotment. i think all those employees who were constantly selling shares will now get more shares . they sold at 400 and now they will buy at 91 , nealry 4 times more shares.
| NIFTY 
