Navneet Education Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Navneet's Q2FY18 results were below our expectations across all parameters. The revenue growth was lower than our estimates...

which will help in expanding Navneet's curriculum. Indiannica plans to add 3 new series of 24 titles, which will boost the current library and help the company to venture into newer geographies. National Council of Educational Research and Training (NCERT) have updated its syllabus and even recent change in the state board syllabus in Gujarat and Maharashtra for major classes will have significant growth opportunity. NEL is also well placed to capture growth triggers like common curriculum across India, and conversion of SEB schools to CBSE....

Navneet reported flattish revenue growth of 0.9% to | 565.2 crore (Idirect estimate: | 618.9 crore). In segment per se, publishing revenue grew 10.1% YoY to | 372.1 crore. Growth in publication segment was moderated as text books of ninth grade in Maharashtra were published late by the education board. Revenues from the stationery segment declined 12.2% YoY to | 191.9 crore on account of destocking of inventory prior to the implementation of GST The EBITDA margin for the quarter declined 250 bps YoY to 28.7% (Idirect estimate: 33%) largely on the back of increase in raw material expenses (up 130 bps YoY) and higher other expenses (up 78 bps YoY). Subsequently, EBITDA de-grew 7.2% YoY to | 162.4 crore (Idirect estimate: | 204.2 crore). EBIT margins for the publication...

ICICI Securities Ltd | Retail Equity Research Navneet's Q4FY17 results were better than our expectations on the revenue and profitability front Revenues for the quarter came in at | 209.8 crore (I-direct estimate: | 186.4 crore), up 12% YoY. Segment per se, publishing revenue degrew 8% YoY to | 53.6 crore (Q4 being a seasonally weak quarter),...

ICICI Securities Ltd | Retail Equity Research Navneet Education is an established player in the supplementary book publishing and stationery segment. It has a market share in excess of 60% in educational publishing in Maharashtra & Gujarat Navneet has a stable business model with steady revenue growth in the publication segment. After a tepid FY16, 9MFY17 has been robust with both publishing and stationery segments reporting a high double digit revenue growth of 18% and 20%, respectively...

Revenues for the quarter came in at | 156.6 crore (I-direct estimate: | 130), up 39% YoY. Segment per se, publishing revenue grew by 31% YoY to | 94.4 crore, whereas Stationery segment grew by 55% YoY to | 61.7 crore. The growth rates on YoY basis were optically higher...

ICICI Securities Ltd | Retail Equity Research Revenues for Q2FY17 came in at | 171.4 crore (I-direct estimate: | 135.8 crore), up 46% YoY. Publishing segment revenue grew 58% YoY to | 108.6 crore, driven by shift of revenue from Q1FY17 to Q2FY17. Stationery segment grew 26% YoY to | 58.7 crore EBITDA increased from | 11.7 crore in Q2FY16 to | 29.7 crore (Idirect estimate: | 17.7 crore). EBITDA margin improved 607 bps YoY to 17.4% due to YoY improvement in EBIT margin in both publication (up 1046 bps to 30.9%) and stationery segment. Stationery segment...

Revenues for the quarter were higher than our expectation and grew 8.6% YoY to | 560.2 crore (I-direct estimate | 552.6 crore). Segment wise publishing revenue grew 7% YoY to | 339.3 crore on account of a change in the ninth and tenth standard syllabus in Gujarat. Stationery segment grew 11% YoY to | 217.6 crore. The growth in stationery segment revenues was mainly on account of a better performance in the exports segment. EBITDA margin improved 153 bps YoY to 32.1% mainly on account of 115 bps and 337 bps YoY improvement in EBIT margin of publication and stationery segment to 41.5% and 20.1%, respectively . Owing to a better operational performance, PAT rose 16% YoY to | 113.6 crore (I-direct estimate: | 103.8 crore).ICICI Securities Limited ascribe a multiple of 16.0x FY18E EPS and have a target price of | 113 with a BUY recommendation on Navneet Education.

ICICI Securities Ltd | Retail Equity Research Revenues for the quarter came in at | 184.2 crore (I-direct estimate | 174 crore), up 0.4% YoY and 63% QoQ. Segment wise publishing...