Hold Navneet Education; target of Rs 136: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Navneet Education with a target price of Rs 136 in its research report dated August 09, 2025.

Broker Research

August 12, 2025 / 12:43 IST

hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Navneet Education

We cut our EPS estimates by 7%/8% for FY26E/FY27E as we fine tune our revenue growth assumptions for domestic stationary business amid weak performance in 1QFY26. While NELI IN’s operational performance was better than our estimates with EBITDA margin of 28.6% (PLe 27.2%); revenue was tad lower than our expectations as there was a delay in publication of grade-1 books in Maharashtra coupled with continued weakness in domestic stationary segment (realization/volume was lower by 9%/5% respectively). We expect revenue/EBITDA CAGR of 7%/8% over FY25-FY27E given rising competition in domestic stationary business and gradual migration of students from state board to CBSE oriented schools.

Outlook

NELI IN trades at inexpensive valuations of 16x/14x our FY26E/FY27E EPS estimates but given persistent growth challenges we maintain HOLD with a SoTP based TP of Rs136 (refer exhibit 5 for more details).

For all recommendations report, click here