Nava Bharat 'powers' up

Nava Bharat Ventures went so close to its 52-week high of Rs.155 when it hit an intra day high today at Rs.149.15, going up 10.5%.

The stock is happy with the news that it has secured provisional acceptance of 300 MW power plant of its step-down subsidiary Mamba Collieries, under the EPC contract. The plant is already in operations. This is located in Zambia and the order re-rates the stock given the fact that Zambia is power deficit and analysts are of the opinion that by FY19, this plant can give RoE of over 22%.

Post the capitalization of the 300 MW power plant upon provisional acceptance, its commercial operations will be consolidated in the company's financial henceforth.

Following this news, some brokerage houses have turned optimistic, increasing their rating and target price.