Motilal Oswal is bullish on Navneet Education has recommended buy rating on the stock with a target price of Rs 159 in its research report dated February 11, 2019.
Motilal Oswal's research report on Navneet Education
Revenue increased ~4% YoY to INR1,816m (our estimate: INR1,898m), driven by 22% growth in Publication segment. EBITDA declined 23% YoY to INR157m (our estimate: INR218m), with the margin contracting ~310bp YoY to 8.6% (our estimate: 11.5%) on account of higher other expenses. Adj. PAT declined 37% YoY to INR75m (our estimate: INR138m). PAT margin shrank 260bp YoY to 4.2% (our estimate: 7.3%).
We expect NELI to deliver sales/PAT CAGR of 14%/17% over FY19-21 and value the stock at 14x FY21E EPS with a target price at INR159. Maintain Buy.
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