EBITDA declined 23% YoY to INR157m (our Net sales grew 21% YoY to INR11,150m, EBITDA increased 23% YoY to INR2,594m and PAT grew 18% YoY to INR1,628m. We raise our FY20/21 PAT estimate by 13%/12% with the K-12 business (Orchids The International School) turning profitable it is expected to be PAT-accretive FY19 onward. 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 Navneet Education NELI has invested in a school management company, which manages 19 CBSE schools under the brand Orchids The International School. Orchids The International School is now an established player in the direct education business. Its occupancy is expected to inch up to 75-80% by Mar19, resulting in PAT accretion of ~INR100m for NELI (35% NELIs share). The company further plans to expand schools under its management.