Nava Bharat Ventures is a steel power company based in Hyderabad but it has net cash. So very strong balance sheet, low earnings multiples and high free cash flow yield – north of 10%. So that in itself is appealing.
If steel prices stay where they are, even if the company is flat from here or demonstrates marginal to no growth or even little bit of downside growth, I think there is very strong fundamental support. All of these companies have had strong run ups. This is one that I would buy today. I would not be at full size in position but if we do get some sort of a pullback, this is something I would add to meaningfully. Again this is one stock that has 25-40% upside. This is something you could see at again Rs 550-600 in short order.
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