520 per cent returns: This multibagger small-cap stock announced remarkable turnaround with debt reduction and enhanced cash flows!
The stock has witnessed heavy buying as it has given multibagger returns of more than 520 per cent in just 3 years
On Monday, shares of Nava Limited surged more than 11 per cent reaching an intraday high of Rs 273.80 apiece on BSE. The scrip witnessed massive spurt in volume by more than 4 times.
Nava Limited, a diversified conglomerate and the parent company of Maamba Collieries Limited (MCL), announced a significant improvement in the financial situation of MCL. The company has successfully reduced its liabilities from Rs 3,998.57 crore as of December 1st, 2022, by Rs 2,296 crore, bringing the total to Rs 1,707 crore as of the current date. This reduction includes the repayment of overdue principal instalments and other liabilities.
MCL has been receiving full payments for all energy sales since May 2022, which has contributed to increased cash flows, including revenue from coal sales. By leveraging these improved cash flows and settling arbitration dues from ZESCO, MCL has successfully met all overdue loan installments, cleared liabilities, and is currently fulfilling its debt service obligations.
Following the successful resolution of the arbitration case against Zambia Electricity Supply Corporation Limited (ZESCO), the Arbitral Tribunal in London issued a Consent Award of US$ 518 Million in favor of MCL in December 2022 for the recovery of outstanding receivables. ZESCO has proposed to discharge a total of US$ 338 million by December 2023 and the remaining US$ 180 Million by December 2024, in accordance with the Consent Award of US$ 518 Mn. To date, ZESCO has made payments totaling USD 181 Million, including a recent payment of USD 60 Million, adhering to the agreed payment plan.
With MCL's loans now up to date, MCL is eager to engage with its lenders to discuss the next steps, including potential distributions to sponsors. These discussions will not only strengthen Nava Limited's financial position but also pave the way for sustainable growth and profitability.
DSIJ offers a product 'Multibagger Pick" with recommendations for multi-bagger stocks based on research and analysis to help subscribers make informed investment decisions. If this interests you, then do download the product details pdf here
Nava Bharat Ventures Ltd was established in 1972 as an Indian ferro alloys manufacturer. Nava Bharat is now a multinational company, operating in India, South East Asia and Africa with businesses in metals manufacturing, power, mining, agribusiness and healthcare.
The stock has witnessed heavy buying as it has given multibagger returns of more than 520 per cent in just 3 years. Moreover, the stock has zoomed more than 40 per cent in just 1 year. Keep a close eye on this trending stock.