Buy Navneet Education; target of Rs 204: ICICI Direct
ICICI Direct is bullish on Navneet Education has recommended buy rating on the stock with a target price of Rs 204 in its research report dated April 13, 2017.
ICICI Direct's report on Navneet Education
Navneet has also constantly maintained healthy return ratios in the 25-30% range. Considering that most of Navneet’s debt is working capital related and gets retired by September each year, we expect it to maintain a healthy return ratio profile. Going forward, we expect revenue and earnings to grow at a CAGR of 19% and 25%, respectively, for, for FY16-19E.
Navneet, with a market share in excess of 60% in two major state boards (Maharashtra & Gujarat), planned expansion into newer states and CBSE curriculum books leads us to re-rate the stock with a BUY rating and a target price of Rs 204 (based on 20.0x FY19E EPS of Rs 10.2).
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