Nava's Q1 results show strong growth in key areas, stock call 'Hold' by MarketsMOJO

Nava, a midcap power company, has recently announced its financial results for the quarter ending June 2024. The company has shown positive performance with a score of 12, which is a significant improvement from 0 in the last 3 months.

One of the key factors contributing to Nava's success is its strong operating cash flow, which has been consistently growing over the past three years. This has been reflected in the company's highest annual operating cash flow of Rs 3,173.52 crore. Additionally, Nava has also shown a strong ability to manage its interest payments, with a quarterly operating profit to interest ratio of 68.68 times, the highest in the last five quarters.

Furthermore, Nava has been reducing its debt and maintaining a low debt-equity ratio, which is currently at 0.06 times, the lowest in the last five half yearly periods. This indicates the company's efforts towards reducing its borrowing and strengthening its financial position.

In terms of sales, Nava has recorded its highest quarterly net sales of Rs 1,222.37 crore, with a positive trend in the near term. The company's operating profit and profit before tax have also shown a positive trend, with the highest quarterly figures in the last five quarters.

Nava's profitability has also increased, with the highest quarterly profit after tax of Rs 355.94 crore and a growth of 36.8% year on year. This has resulted in a higher earnings per share of Rs 24.50, indicating the company's ability to generate higher earnings for its shareholders.

However, there are some areas that Nava needs to work on, such as its short-term liquidity, as reflected by its lowest cash and cash equivalents in the last six half yearly periods. Additionally, the company's dividend payout ratio has been consistently low, indicating a lower distribution of profits as dividends.

Overall, Nava's financial performance for the quarter ending June 2024 has been positive, with strong growth in key areas. The stock call by MarketsMOJO for Nava is 'Hold', indicating a neutral stance for investors.