Techno electric :- multibagger in making

This stock was first recommended by us on 29th August 2023 at 520 and we booked profits around 800
on 29th December 2023. Now stock has corrected from 860 levels to 700 levels giving us a golden
opportunity to add for short/medium/long term.
NAME :- TECHNO ELECTRIC
MCAP :- 7595 CR.
CASH ON BOOKS :- 1250 CRORE(31ST DEC2023)
CMP : 710
BUYING RANGE :- 700-730
CONVICTION : VERY HIGH.
CAN BE HIGHEST ALLOCATION IN YOUR PORTFOLIO.
ABOUT THE COMPANY :-
Techno Electric & Engineering Company Ltd. (TEECL) is one of India’s most prominent power
infrastructure companies with a distinguished history of 4 decades. Specializing in Engineering,
Procurement, and Construction (EPC), asset ownership, operations, and maintenance services in
power infrastructure industry AND now company is also getting big orders for smart meters and they
are about to start their first 24MW Data center in Chennai where they have invested 1400 crore.
As per latest letter to shareholders which was for fund raising company has informed that order
backlog has now reached 6000 crore and execution is on fast track. In next 12 company plans to
start another 2 data center of 25 mw each and in 3-4 years company plans to have total capacity of
250 MW. When capacity reaches 250 MW this data center business alone will be valued above
30,000 crore vs current enterprise value of 6250 crore. Company also has other EPC and other
power sector related business where already big capex is going on.
Let us now look at various vertical of the company :-

Techno electric is one of the most attractive company in Electro-mechanical
works in India.

1.POWER GENERATION
Energy consumption is all time high in the country today, and by 2030, the company is targeting
a per captia consumption will be 1750 to 2000 units as against 1250 now. As energy
consumption is concerned with china plus one, auto industry is coming back to india, it will fuel
an insatiable demand for power and thereby leading to demand for all segments of power,
power generation, power transmission, reforms in power distribution, as well as business in
power consuming industry with capex being back.
India`s power demand is expected to clock not less than 7% over a period of five years,
presently it is at around 10%. This has brought a new focus on renewable energy. GOVT. is also
planning to bring back the conventional energy to the extent of 80-90 gigawatt. So, the
business will be happening in both conventional and renewable energy. The govt.has already
set a target of 500 GW

2. TRANSMISSION & DISTRIBUTION
   AS, the govt. has set a target of 500 gigawatt of renewable energy, this also means creating a
   transmission network to handle this 500 gigawatt of renewable energy which identifiesvarious
   transmission network compressing of almost 4 lakh of transforming capacity and no less than
   50,000 per kilometers of light . this is a very big positive for the company.
3. DATA CENTER
   As the consumption of data is growing everyday in our country, at present the company is
   having 700 megawatts of data centers in the country, which is likely to be atleast 2 gigawatts by
   26 and it can grow to 5 gigawatts by 2030. India actually offers a very attractive energy cost
   today apart from stability of supply compared to southeast asia or Europe, so it may lead to
   happen that large operators in this space would like to locate their data center in india. The
   increasing adoption of AI,5G, virtual realty will revolutionize the enterprise technology market
   and benefit data centers.
   Techno electric is in advanced stage of setting up a data center of 24 megawatt IT load and 40
   megawatt of grid load at Chennai and phase 1 should start by end of April 2024. Due to induction of AI, the datacenter business is stongly backed, the company is confident and is expecting of achieving 250 mw in next 4-5 years.The company is very well placed to capitalized on this opportunity.
   4.SMART METER
   In the metering segment, the company is expecting orders of 2000 cr. Year on year. the
   company is already executing a smart meter business in the state of J&k for 2.5 lakh meters
   which is going to complete by the end of Q4 and in addition they have got another order to
   install about 7.25 lakh meters in the state of J&K. They have also backed order to install 5 lakh meters in the city of indore and indore discoms. Right now they are L1 in Tripura, and the company is expecting order very shortly for another 4 lakh meters in the state. They are also participating in business in the state of Rajasthan, Jharkhand for smart meters and the company is expecting that by the close of the year they will
   have additional business of about a million meter more. This is a huge business opportunity for the company that has never seen before.

The company`s un-executed order book as on date is at all time high at 6,000 cr. The company placed L1
in another business of almost about Rs.1700 cr.comprising orders from Power grid, Business one in
partnership with Indigrid, orders from Adanis.

The company is very well placed at the moment and with a lot of merits, they are financially strong with
undeployed cash of Rs.1250 cr. at the moment. With a view of expanding order book in the near future
and expansion of business .We can expect topline to be 600-650 cr for this coming quarter that is Q4
FY24 and EBIDTA of close to 105-110 crore. From here on one can expect a minimum downside for this
business, For next year that is FY25 one can expect topline to be around Rs.2600-2800 (conservative)
And for the coming years for FY25-26 the topline can be around Rs.3500-4000 cr On conservative basis and PAT of 500 crore ++.We @Dialwealth expect company to cross its previous high of 860 post Q4 numbers and stock has allpotential to give multibagger returns to its medium to long term investors.

Those who wish to join our broadcast list by paying one time fee can whatsapp us your name to 9930441584.

If you have any doubt regarding any of our stock picks feel free to contact us we will be available 24×7.
@Dialwealth.

STAR CEMENT DOMINANT PLAYER IN NORTH EAST

This note is not for short term investors and traders.

DATE :- 06/06/23

NAME :- STAR CEMENT

CMP :- 146

BUYING RANGE :- 140-150

FIRST TARGET :- 250+

FINAL TARGET :- 400+

FIRST TARGET TIME FRAME :- 6 MONTHS

MCAP :- 5900 CRORE

CONVICTION :- EXTREMELY STRONG

DOWNSIDE RISK :- VERY LIMITED

One of the best and highly efficient cement player. Highest EBIDTA per ton vs whole industry in FY23

one of the most efficient player when compared to even its larger peers like ultratech and dalmia bharat

Why star cement :-

Star cement has cement capacity 5.7 MT and clinker capacity of 2.8 Mt and power capacity of 51 mw
and recently commission 12 MW WHRS in may 2023.

Company is spending Rs 1450 crore to set up 3 MT clinker capacity along with 12 mw WHRS and
additional Rs 800 crore to set up 2 grinding unit in assam. Clinker plant should come online by
October 2023 and grinding unit in Q4 of current financial year.

At present north east is highly profitable cement market infact in whole india north east is the only
place where cement price went up by 10 rs perbag where as in other parts of india it remain flat.
Input prices for cement markers have also come down significantly which will start reflecting from Q1
of current financial year.

Star cement at present has debt free balance sheet and majority of the capex is done from internal
accrual. Maximum debt if at all company will take will be 500 crore and that too will be repaid in first
year of commercial operations.

For FY24 we @ Dialwealth expect star cement to report 3400 crore topline and PAT of 600-615 core
which means stock is trading at 9.5 times current year expected earnings which is very attractive.
STAR cement will report very strong numbers from Q1 itself and stock should be rerated in a big way.

Those who wish to be a part of our whatsapp broadcast list can whatsapp us your name to 9930441584.

The above not is not for short term traders.

I am not a sebi registered research analyst please consult your financial advisor before investing.

@Dialwealth_in

GULSHAN POLYOLS

NAME :- GULSHAN POLY

CMP :- 235

BUYING RANGE :- 230 – 240

TARGET :- 500+

TIME FRAME :- 6-9 MONTHS

CONVICTION :- EXTREAMELY HIGH

DOWNSIDE :- MAXIMUM 10% FROM CMP (WORST CASE)

ALLOCATION :- IT IS A HIGH ALLOCATION STOCK ONE SHOULD READ THE THESIS RISK REWARD AND BUILD YOUR OWN CONVICTION.

STOCK HAS CORRECTED FROM HIGH OF 425 WHICH WAS MADE IN FEB 2022 AND HAS BOUNCED 10% FROM RECENT LOWS. COMPANY HAD ALSO DONE A QIP AT 325 LEVELS IN MARCH 2022 WHERE IN VERY
GOOD MUTUAL FUND HAD PARTICIPATED.

WHY GULSHAN POLY ?

Gulpoly is doing a major capex of Rs 600 crore and expanding its existing capacity which are all running at 100% utilisation. Major part of the capex coming online from current month and will reflect in Q1fy24
numbers.

LET US NOW LOOK AT THE BUSINESS OF THE COMPANY :-

The group was established in 1981 and Gulshan has completed more than 40 years in the industry.Gulpoly is India’s leading manufacturers of specialty-based chemicals as well as manufacturers ofethanol and biofuel with a global presence in 35 countries across various continents.Gulpoly started journey as Gulshan Sugar and Chemicals with the primary business of manufacturing calcium carbonate and gradually expanded into a multi-product manufacturing company engaged in the manufacturing of ethanol. Specialty Chemicals like Sorbitol, Starch, Starch derivatives, and various grades of calcium carbonate and on-site PCC plants helped Gulpoly cross the milestone of 1,000 crore revenue in FY22 and company is likely to cross Rs 2500 crore revenue by end of FY24 driven by a big expansion program.

LET US LOOK WHERE THE NEW CAPACITY ARE COMING UP :-

Gulpoly operates in three segment First is the grain processing segment, second is the bio fuel or distillery segment and third is the mineral processing segment. Grain processing segment :- This segment mainly comprises of products such as sorbitol, maize, starch, liquid glucose, fructose syrup and other starch derivatives like Malto Dextrine, Dextrose Monohydrate
and agro based animal feed. Currently companies capacities are based across two locations one is in Muzaffarnagar Uttar Pradesh and others being in Gujarat in Bharuch. In Gujarat company is currently
manufacturing sorbitol which has a capacity of 72,000 metric tons per annum and at Muzaffarnagar company is producing maize starch at a capacity of 70,000 metric ton per annum. Company is also producing fructose syrup which has a capacity of about 36,000 metric ton per annum. So all put together
gulpolys combined capacities and the grain processing segment is about 150,000 metric ton per annum which company is expanding by about 20% that is from 1,50,000 to 1,80,000 ton which will come online by April 2023 . At end of March all products in all our facilities are currently running at 100% capacity utilization. Company has a very strong customer base in this segment. For sorbitol gulpoly supply to mostly FMCG it goes in the oral care industry, Lever, Dabur, Asian Paint, Patajali. company also export to more than 35 countries.

Starch derivatives :- it is mainly used with semi craft paper industry and with a whole robust demand in the e-commerce segment and rise in the corrugated demand for packing and corrugated boxes. Currently companies plant is at 100% capacity utilization and company is able to sell our entire products with the 100 kilometers of thier facility being in the paper belt of Muzaffarnagar which is surrounded by paper mill.

Fructose Syrup :- It is also a sweetener it is currently being used in the beverage segment and gulpoly is one of the largest in the segment in the country.

Ethanol & distillery segment: Currently Gulpoly has a 60 KLPD grain-based ethanol plant as well as distillery in MadhyaPradesh Chhindwara. Currently distillery is running at a 110% capacity utilization this was set up in 2020 and by the expansion looking at the EBPP program of the government and having faith in the whole blending program of petroleum with ethanol. At present company is expanding capacity from 60KLPD to 500 KLPD and this plant should be operational by April 2023.
Gulpoly is also setting up another plant for grain-based ethanol in Assam with a capacity of 250 KLPD. This is going to be in Assam in Goalpara. This should be ready by FY25.

Third major segment is mineral processing segment :- in this segment company has various grades of calcium carbonate and onsite PPC plant. This is a small segment, but with good contribution. So, various
grades of calcium carbonate like precipitated calcium carbonate, brown calcium carbonate this mainly
goes in the paper industry and also in the PBC industry. At present all the companies plant are running at 100% utlisation and company is spending 600 crore in
capex vs current fixed asset of 200 crore. In last few quarters company was facing hit in its margins are both its raw material that is coal and maize had seen unprecedented increase due to Russia Ukraine war. Now as the things are normalising and price returning to normal levels we will se good recovery in margins from Q4FY23 itself. And from FY24 new capex is coming online which will more then double its topline and PAT. We @DIALWEALTH expect company to deliver topline of 2500-2600 crore and pat of more then 210-215 core vs current mcap of 1150 crore which means stock is just trading at 5 times current year earnings which is extremely attractive. We @Dialwealth feel that stock can easily double in next 6 -9 month and has very limited downside.

IT IS SAFE TO ASSUME THAT ME AND MY CLINETS HAVE LONG POSITION IN THE STOCK DISCUSSED AND VIEWS ARE BIASED.

I AM NOT A SEBI REGISTERED RESEARCH ANALYST

CONSULT YOUR FINANCIAL ADVISOR BEFORE INVESTING

Those who wish to be a part of our whatsapp broadcast list by paying a one time fee can whatsapp us your name to 9930441584.

Strong stocks with earnings momentum and near all time high

Roto pump and Apar ltd are two stocks which are very strong in a market where mid and small caps have been taken to cleaners, Both stocks are with in 10% of all time high and in both stocks earnings expectation from FY24 is very strong. Let us look at triggers for both stock.

1. Roto pump :- A big capex of rs 100 crore is likely to get commissioned by march end impact of which will be visible from FY24. company is expected to cross topline of 500 crore in next years from current topline of 200 crore. Also the new products which company will manufacture(downhole pump & mud motor pump) have very high margin and will contribute meaningfully to topline as well as bottomline. company has recently bagged a single largest order from grasim for 14 crore which will be executed by august 2023 which will also help company to post excellent. For FY24 we @Dialwealth expect roto pump to deliver topline of 350-375 crore and pat of 70-75 crore and for FY25 we expect company to post revenue of 525-550 crore and pat should be well above 110-115 crore. stock is likely to outperform the market and one can execpt multibagger returns from this stock even from current levels.

2. Apar industries :- Apar industries delivered extremely strong Q3 numbers on back of very strong growth in exports and change in product mix which has resulted in growth in topline and improvement in margins resulting in highest ever profits in history of the company. Management is sounding extremely bullish on concall and is very confident that the change is structural in nature and demand for its products both in cable and conductor division is likely to be very strong. Management has guided to 20%++ growth in conductor division and 30% growth in cable division oil division which is 1/3 of companies business is likely to grow at 5-7% and worst for this division seems to be over. For cable division management is sounding ultra bullish and has guided for 30% growth for many years to come. We @Dialwealth feel that earnings momentum is likely to continue not only in Q4 of current year but for entire FY24. We @Dialwealth expect very strong numbers in Q4 of current year and revenue of 20000 crore in FY24 and pat of 980-1020 crore in FY24. we expect 50%+ returns in next 6 months.

Those who wish to our whatsapp broadcast list by paying one time fee can whatsapp us your name to 9930441584.

I am not a sebi registered advisor please consult your financial advisor before investing.

@Dialwealth

What advice would you give to your teenage self?

Read as much as possible. Reading habit will take you miles ahead

Update on NAVA LTD

Date :- 25/02/2023

Dear friends,

Over last few days I have received few queries on NAVA LTD regarding the receivable of arbitration award and lot of investors are doubting that will the payment be received ? or it will be stuck in courts as we have seen in few recent case like reliance infra and kiri industries.

Our take is that NAVA will easily receive payment as there is lot difference in the arbitration award itself and the situation that company is commanding right now.

Our take :-

The dispute was in between ZESCO which is owned by govt of Zambia and MAAMBA collieries which is subsidiary of NAVA ltd.

First of all the award received by NAVA is a consent award which means both parties have agreed mutually to certain terms and done settlement and filed consent terms in international court of London and things have been agreed and settled upon VS long fight and dispute seen in other cases.

Second from May 2022 zesco has again started buying power from MAAMBA collieries(NAVA LTD) and since then it is regularly paying 100% of its dues on time and there is no default.

Third Zambia and other African countries are having huge power shortage and loadshedding and they cant afford to disrupt power supply if they want economic growth going also IMF has given financial support on terms that they have to carry on reforms in power sector as without power economic growth is not possible.

Fourth MAAMBA has now become a member of SAPP (south Africa power pool) and has a new buyer for its power and has already supplied 20% of production in Q3 at higher realisation and cash payment due to this zesco will also wish to give the arbitration award quickly and secure power for their requirements post August 2023.

Fifth management of nava is now planning to add another 300 MW at existing plant and no one will put additional capacity if they have doubts on old receivable this indicates that management is expecting payment of arbitration award on or before time.

Sixth nava had planned a 16 day schedule maintenance for half of its power plant that is 150 mw starting 4 th jan which would have lasted till 20 th jan 2023. However president of Zambia Mr. Hakainde intervened and requested Maamba to complete it as early as possible and maamba resumed production before three days from schedule date.

We have attached few articles relating to power situation in Zambia and how important maamba is for Zambia and its development. All of the above factors indicate that payment of the arbitration award will be done before Aug 2023.

Old article how important maamba is for Zambia :- Calls for quick resolution to ZESCO – MCL debt impasse (miningreview.com)

Linkedin post by Maamba after starting plant 3 days before schedule :- Maamba Collieries Ltd on LinkedIn: MCL COMPLETES SCHEDULED MAINTENANCE THREE DAYS AHEAD OF SCHEDULE Maamba… | 21 comments

Nava becoming a member of south Africa power pool (sapp) :- Microsoft Word – Outcome2 (bseindia.com)

We @Dialwealth also expect NAVA to be debt free on consolidated basis infact have surplus cash for expansion. We also expect positive cash flow of 5000 cr plus( nava is also planning to sell some of its non core assets which they have mentioned in concall )  in FY 24 and PAT of 1600 cr plus in FY24 and current market cap is about 3500 cr.

If you have any doubt regarding any of our stock picks feel free to contact us.

To become a member of our whatsapp broadcast list by paying a one time fee of Rs 25000 you can whatsapp us your name to 9930441584.

@Dialwealth

Ganesh eco

Ganesh eco reported flat numbers which is inline with expectation as plant is running at 100% utilisation since last 2 quarters.

Revenue came at 273 cr vs 288 cr and pat came at 21 cr cr vs 16 cr yoy and 20 cr QoQ

now the big positive is that the most awaited warangel facility has started commercial production since month of February 2023 and now the biggest growth in history of the company will be seen

From the above image one can see that most of the new products have started commercial operations and impact will be seen from current quarter.

Another big positive is that for Bottle to Bottle chips plant they have received USFDA approval for food contact and major global brands have started Audit. According to industry sources coke and pesico are two major bevrage players who have started audit. This could be one of the biggest turning point in the histroy of company once they receive approval.

Another big positve is that the warangel plant is soo big that they can increase capacity by 2-3 times without buying extra lanx everything will be brownfield.

All the products from new facility are premium products and high margin products in earlier concall managent has guided that consolidated margins are likely to improve by 300-400 bps points from current levels of 11-12%.

Fy23-24 is likely to be very big for ganesh eco and growth is likely to continue for many more years to come.

Even though stock is up close to 50% from our recommended levels of 600 we @Dialwealth feel that this is just the beginning and this stock is likely to give multibagger returns even from current levels of 900.

Those who wish to join turbo plan by paying one time fee of 25,000 can whatsapp us ypur name to 9930441584.

I am not a sebi registered research analyst and the views given here are biased.

Please consult your financial advisor before investing.

@Dialwealth

UPDATE ON NAVA LIMITED

DIALWEALTH UPDATE

NAVA LTD

Extremely strong Q3 numbers delivered by NAVA LTD and very positive guidance given by management in the concall.

Link to concall recording :-

https://www.navalimited.com/wp-content/uploads/2023/02/icc_08_mp3_03_2022-23_03feb2023.mp3

Rev 880 cr Vs 950 cr
Pat 191 cr Vs 363 cr

Beat in the numbers was driven by big beat in power division in Zambia which is reflected in consolidated numbers.

Now the reason for big beat in power business is that NAVA is now a part of SAPP(South Africa power pool) it is the power exchange and now NAVA is a part of SAPP and now it can sell power to SAPP and that to at a premium and immediate payment terms.

Zambia(zessco) is purchasing power from NAVA at 0.09 cents and NAVA gave power to SAPP at 0.14 cents and payment terms are immediate no credit.

This is a big change for NAVA and it will ensure better result and super cash flows for the company in future.

Management of NAVA is also confident of receiving the arbitration award(518 million $) by AUG23 and once received NAVA will be net cash positive on consolidated basis.

NAVA is also planning to double its power capacity from current 300 MW to 600 MW which will further improve its numbers and cash flows.

Earnings press release :-

https://www.bseindia.com/corporates/anndet_new.aspx?newsid=36046d2a-9be2-4d4b-a807-5ada318c8f76

Topline has decreased a bit due to muted performance of ferrous alloy division which is shown in standalone result however management has guided strong numbers from Ferro alloy division from current quarter as raw material price are down 50% and selling price is up 10%.

Overall NAVA Ltd is likely to receive cash flow of 4000+ crore in next 6 months which is higher then current market cap of 3300 cr.

NAVA at present is trading at very attractive levels and it’s once in a lifetime opportunity to buy NAVA at this cheap valuations.

Once cash flow comes into company management has also informed that shareholders will be rewarded by dividends or buyback

Do listen to the concall recording and if you have any doubt regarding the same feel free to contact us on 9930441584.

@Dialwealth

Ashiana Housing

Dear friends,

Investors should use this dip/volatality as opportunity and invest in stocks where volatility is low and earnings is visible one such stock currently is Ashiana housing.

Ashiana housing has very strong balance sheet which is net debt free strong cash and cash equivalent good promoter quality and strong execution history

Extremely high conviction BUY Ashiana housing cmp 150 target 225++ in next 3-6 months.

Why ?

Now according to companies accounting method they only book profit at the time of delivery of project now in next 6 months company is about to deliver 16 lac square foot out of which 9 lac square foot will be delivered in current financial year itself and balance 7 lac by end of June.

Source :-

https://www.bseindia.com/stock-share-price/ashiana-housing-ltd/ashiana/523716/corp-announcements/

(Page no-15)

Company has also done sales of 877 cr in 9 months of current financial year out of which 485 cr was in Q3 alone. These are extremely strong sales numbers.

Source :-

Click to access f80294cc-3a15-47b0-8ec4-d76b2cf49b87.pdf

Realisations has improved to 4904 per square foot at end of Q2FY23 Vs 3883 in FY22 a this positives will soon start reflecting in numbers.

Source :- investor presentation 15-11-2022 page no 6 and page no 17 available on bse website.

Company is net debt free and has a very strong cash balance to execute all projects.

From current levels of 150 risk reward is very favourable for investors those who can hold for next 6 months and one can expect target of 225+.

All the above positive will soon reflect in numbers and stock will be rerated soon.

The above note is only for investors and not for short term traders.

It is safe to assume that me and my clients have investment in the above mentioned stock and views are biased.

Please consult your financial advisor before investing.

Those who wish to join our turbo plan (one time joining fee 25,000) can whatsapp us ypur name at 9930441584. (only for investors)

@Dialwealth

DIALWEALTH MULTIBAGGER

NAME :- NAVA LTD

CMP :- 210

DATE :- 27/12/2022

MCAP :- 3200 CRORE

1^St TARGET : 400+(6 months)

FINAL TARGET :- 600.(12 months)

BUYING RANGE :- 220-235

TIME FRAME :- 6 TO 12 MONTHS

CONVICTION :- VERY HIGH

BOOK VALUE :- 390

According to us @Dialwealth NAVA ltd is trading at steep discount to its intrinsic value and now problems for the company seems to be getting over and stock can be rerated in big way in next 6-12 months.

WHY NAVA LTD ?

Nava ltd is a Diversified organization with interests in ferro alloys, energy, O&M services, coal mining and commercial agri. Operates in different geographies spanning across India, South east asia and Africa.

Ferro alloy division :-

Nava ltd is Leading manufacturer & exporter of Manganese and Chromium Alloys having capacity of  Manganese Alloys – 125,000 TPA and  Chromium Alloys – 75,000 TPA. Nava leverages upon captive power and long term tie up for Manganese Ore. Nava also has tie up with tata steel for ferro chrome convertion.

ENERGY :-

In India Nava has 5 power plants with installed capacity of 434 MW spread across Telangana, Odisha and Andhra Pradesh. All plants are  Strategically located thermal power plants in proximity to coal mines.

In Zambia Nava Operates Zambia’s only integrated captive thermal power plant with installed capacity of 300 MW which can further be expanded to 600 MW AND company has also singed PPA for more than 70% power output available for sale.

COAL MINING :-

Nava Operates Zambia’s largest coal mine – Supplies high-grade coal to industrial consumers in Zambia and its coustomers include marquee clients like Lafarge, Dangote and others.

TURNING POINT FOR THE COMPANY :-

Nava ltd had total outstanding of 518 million $ from a Zambian company ZEBCO however on 15^th DECEMBER 2022 a consent award was passed by international arbitration court that ZESCO shall, by August 2023, discharge the outstanding and overdue arrears aggregating to about US$ 518 million as at 31st October 2022 after adjusting for a cash discount of US$ 60 Million, extended by Nava ltd. As part of the Award, ZESCO is mandated to discharge the VAT liability of about US$ 70 Million forming part of the total arrears as above, directly to the Government.

LINK :- Microsoft Word – Arbitration outcome_15 Dec 2022 (bseindia.com)

Due to this award NAVA LTD shall receive a payment of close to Rs 3200 crore by august of 2023 and shall be able to settle all of the outstanding debt of close to  Rs 3350 cr of Zambia power project. This settlement itself will lead to saving of more then 400 cr of interest for nava ltd which will directly reflect in PAT.

Another positive for NAVA is that from 1^st MAY 2022 company has revised tariff agreement with ZESCO, and company is  getting paid in full for the energy that is being supplied. The receivables are under the old PPA, which have been stalled or not increasing since 30th April.

Other then this NAVA LTD has cash of 550 cr on its book and company in its latest presentation has informed that it is in final stages of selling its non core assets Hydrabad land( 65 acre) and land parcel at Dharmavaram (near Kakinada port) , 20 MW IPP power project in Andhra Pradesh and supar plant and project land. All these together have potential to add another Rs 800-1000 crore cash in companies kitty.

Management of the company is also committed to enhancing internal cash flow generation through operational excellence reduce debt in a phased manner in both domestic & overseas operations and Rewarding Shareholders via consistent dividends & buybacks.

VALUATIONS :-

AT CMP OF 210 NAVA LTD has market cap of 3200 crore. For current year that is FY23 we @Dialwealth expect NAVA to deliver PAT of Rs 900+ crore and For FY24 we @Dialwealth expect company to deliver PAT of Rs 1200+ crore. Nava LTD is trading at 3.5 times current year earnings and 2.5 times one year forward. Even if we assume stock to trade at 8 times one year forward earnings market cap should be close to 9600 cr which is close to 3 times current market cap.

Those who wish to join our turbo plan can whatsapp us your name to 9930441584.

WE @DIALWEALTH expect  very limited downside from current level and we have target of 600+ in next 12 months.

IF YOU HAVE ANY DOUBT REGARDING ANY OF OUR STOCK PICKS FEEL FREE TO CONTACT US ANYTIME WE WILL BE AVAILABLE 24X7.

I AM NOT A SEBI REGISTERED RESEARCH ANALYST AND IT IS SAFE TO ASSUME THAT VIEWS PRESENTED IN THE BLOG ARE BIASED AND ONLY FOR EDUCATIONAL PURPOSE.