Moneycontrol
Get App
Last Updated : Nov 20, 2019 04:40 PM IST | Source: Moneycontrol.com

Buy Navneet Education; target of Rs 142: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Navneet Education has recommended buy rating on the stock with a target price of Rs 142 in its research report dated November 14, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Navneet Education


Navneet's (NELI) results were above our estimates in a seasonally lean quarter with revenues declining 6.3% YoY to Rs2,468mn (PLe of Rs2,160mn; beat by ~14%). However, after adjusting for the spillover of Rs600mn in 2QFY19, revenues increased 21.3% YoY aided by strong growth in the stationery segment. EBITDA declined 31.4% YoY to Rs318mn and was in-line with our estimate with margins declining 470bps YoY to 12.9%. Tax reversals led to 47% YoY growth in PAT to Rs425mn. Given the current quarter performance, we keep our estimates broadly unchanged. Valuations at 9.6x FY20E and 8.3x FY21E appear attractive given 33% bottom line CAGR over FY19-21E, superior return ratios, strong dividend pay-out and narrowing losses in E-sense.


Outlook


However, we marginally cut our target multiple to 12x (earlier 15x) as we roll forward to FY21E. Maintain BUY with a TP of Rs142 (earlier Rs153).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Nov 20, 2019 04:40 pm
Sections
Follow us on