Nanavati Ventures Limited

Consumer Cyclical — Luxury Goods · BSE

₹77.05₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Nanavati Ventures Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nanavati Ventures Limited engages in the diamonds trading business in India. It serves manufacturer, retailer as well as wholesaler in the market. The company was incorporated in 2010 and is based in Surat, India.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees3

Annual revenue₹19 Cr

How does it make money?

Turns over ₹19 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹6.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.23 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 0.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +17% while net margin moved -27% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+17%

Margin effect-27%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.3% is weak

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

26/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

481.6x

3Y Median

176.6x

40 monthly readings · mean 172.7x · range 89.3x–280.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 173% above its 3y median of 176.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 596% above the peer median of 69.2x.

vs. its own history

Expensive

176.6x median over 40 months · +173%

vs. sector peers

Expensive

69.2x median of 4 peers · +596%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

199.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 5528% against revenue up 17% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 136% against revenue up 17% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 183% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 5528% against revenue up 17%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 173% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 5.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -1%✓ 1.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.3% CAGR
Latest reported year was -65.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 8%✗ 0.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 176.6x✗ 481.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

2 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 4 neutral · 6 weak

Market Cap

₹36 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

481.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.16

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.7%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-65.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-82.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

0.3%

Weak

Assets generate little profit

Operating Margin

6.4%

Average

Average margins

Net Margin

0.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.29

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

80.9 / 83.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹26 Cr	₹9 Cr	₹19 Cr	+5.3%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-14.7%
EBITDA Margin	1.8%	1.2%	3.8%	1.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-5.0%
EPS	₹0.52	₹0.42	₹0.47	—	—
ROE	1.0%	0.9%	1.0%	0.3%	—
ROCE	1.4%	1.2%	1.4%	0.7%	—
Free Cash Flow	-₹2 Cr	-₹14 Cr	-₹0 Cr	-₹0 Cr	—

🟢 Revenue has grown at 5.3% a year over 3 years.

🔴 EBITDA has shrunk at 14.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.0% over 3 years.

🔴 PAT (Net Profit) has shrunk at 5.0% a year over 3 years.

🟡 ROE has held roughly flat at 0.3% over 3 years.

🟡 ROCE has held roughly flat at 0.7% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹40 Cr

Total Liabilities

₹17 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.8%

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

6 general

Compare with

Equitymaster, 14 Oct

Nanavati Ventures appoints Vipulbhai Vachheta as chairperson and managing director

scanx.trade, 01 Sept

Gems Diamond Exports Penny Stocks in India 2027: 5 Picks

Univest, 18 Sept

Compare with

Equitymaster, 10 Oct

Nanavati Ventures IPO: Check date, price and other details of public issue

Firstpost, 22 Apr

NVENTURES Stock Price and Chart — BSE:NVENTURES

TradingView, 07 May

Watch Items

Revenue growth is negative (-65.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 176.6x · see Key things to watch ↑