Hold Navneet Publications, target of Rs 59: Sharekhan

"The FY2009 performance of Navneet Publications (Navneet) is expected to be
mediocre. We expect the company to register a top line growth of 20.6% year on year (yoy) to Rs 495.8 crore, primarily driven by a robust growth in the stationery business (of 57% yoy). In its performance review meet (on April 22, 2009) the management of the company estimated a turnover of above Rs 500 crore for FY2009."

"In view of the performance expected in FY2010 and the dividend yield of 4.1%, the stock is fairly valued at the current valuations. Since our last update on the company (ie March 19, 2009) the stock has appreciated by 34% and achieved our price target of Rs 59. Consequently, we are downgrading the stock to a Hold and advise partial booking of profits," says Sharekhan's research report.

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