Navneet Education (NSEI:NAVNETEDUL) - Share price, News & Analysis

NAVNETEDUL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	3/6
Financial Health	5/6
Dividends	2/6

NAVNETEDUL Stock Overview

Navneet Education Limited publishes state board publication books and stationery products.

Rewards

Price-To-Earnings ratio (15x) is below the Indian market (19.5x)

Earnings are forecast to grow 26.53% per year

Earnings grew by 134.6% over the past year

Risk Analysis

Dividend of 1.73% is not well covered by earnings

Large one-off items impacting financial results

Navneet Education Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Navneet Education
Historical stock prices
Current Share Price	₹87.10
52 Week High	₹121.55
52 Week Low	₹81.00
Beta	0.32
1 Month Change	0%
3 Month Change	-2.19%
1 Year Change	-9.03%
3 Year Change	-17.99%
5 Year Change	-49.81%
Change since IPO	488.51%

Recent News & Updates

May 22

Results: Navneet Education Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Navneet Education Limited ( NSE:NAVNETEDUL ) shareholders, because the company has just...

Shareholder Returns

	NAVNETEDUL	IN Media	IN Market
7D	-0.1%	-5.7%	-3.1%
1Y	-9.0%	-12.0%	-2.5%

Return vs Industry: NAVNETEDUL exceeded the Indian Media industry which returned -12% over the past year.

Return vs Market: NAVNETEDUL underperformed the Indian Market which returned -2.5% over the past year.

Price Volatility

Is NAVNETEDUL's price volatile compared to industry and market?
NAVNETEDUL volatility
NAVNETEDUL Average Weekly Movement	5.5%
Media Industry Average Movement	6.4%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: NAVNETEDUL is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NAVNETEDUL's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1959	2,695	Sunil Gala	https://www.navneet.com

Navneet Education Limited publishes state board publication books and stationery products. The company operates through three segments: Publication, Stationery, and Others. The Publishing segment consists of supplementary books, such as workbooks, guides, and question banks, which are based on the latest prescribed syllabus by state education boards.

Navneet Education Fundamentals Summary

How do Navneet Education's earnings and revenue compare to its market cap?
NAVNETEDUL fundamental statistics
Market Cap	₹19.67b
Earnings (TTM)	₹1.31b
Revenue (TTM)	₹11.14b

15.0x

P/E Ratio

1.8x

P/S Ratio

Is NAVNETEDUL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NAVNETEDUL income statement (TTM)
Revenue	₹11.14b
Cost of Revenue	₹6.11b
Gross Profit	₹5.04b
Other Expenses	₹3.72b
Earnings	₹1.31b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.80
Gross Margin	45.20%
Net Profit Margin	11.77%
Debt/Equity Ratio	11.3%

How did NAVNETEDUL perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

26%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is NAVNETEDUL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NAVNETEDUL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NAVNETEDUL. This is calculated by dividing NAVNETEDUL's market cap by their current preferred multiple.
What is NAVNETEDUL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹19.67b

NAVNETEDUL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.9x
Enterprise Value/EBITDA	12.8x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does NAVNETEDUL's PE Ratio compare to its peers?

NAVNETEDUL PE Ratio vs Peers

The above table shows the PE ratio for NAVNETEDUL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13.4x

Forward PE

Price-To-Earnings vs Peers: NAVNETEDUL is expensive based on its Price-To-Earnings Ratio (15x) compared to the peer average (13.4x).

Price to Earnings Ratio vs Industry

How does NAVNETEDUL's PE Ratio compare vs other companies in the Indian Media Industry?

Price-To-Earnings vs Industry: NAVNETEDUL is good value based on its Price-To-Earnings Ratio (15x) compared to the Indian Media industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is NAVNETEDUL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NAVNETEDUL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15x
Fair PE Ratio	19.6x

Price-To-Earnings vs Fair Ratio: NAVNETEDUL is good value based on its Price-To-Earnings Ratio (15x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

Share Price vs Fair Value

What is the Fair Price of NAVNETEDUL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NAVNETEDUL (₹87.1) is trading above our estimate of fair value (₹30.53)

Significantly Below Fair Value: NAVNETEDUL is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: NAVNETEDUL is good value based on its PEG Ratio (0.6x)

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Future Growth

How is Navneet Education forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAVNETEDUL's forecast earnings growth (26.5% per year) is above the savings rate (6.7%).

Earnings vs Market: NAVNETEDUL's earnings (26.5% per year) are forecast to grow faster than the Indian market (17.5% per year).

High Growth Earnings: NAVNETEDUL's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NAVNETEDUL's revenue (24.2% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: NAVNETEDUL's revenue (24.2% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NAVNETEDUL's Return on Equity is forecast to be low in 3 years time (18.4%).

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Past Performance

How has Navneet Education performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-18.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NAVNETEDUL has a large one-off gain of ₹752.3M impacting its March 31 2022 financial results.

Growing Profit Margin: NAVNETEDUL's current net profit margins (11.8%) are higher than last year (6.7%).

Past Earnings Growth Analysis

Earnings Trend: NAVNETEDUL's earnings have declined by 18.9% per year over the past 5 years.

Accelerating Growth: NAVNETEDUL's earnings growth over the past year (134.6%) exceeds its 5-year average (-18.9% per year).

Earnings vs Industry: NAVNETEDUL earnings growth over the past year (134.6%) exceeded the Media industry 13.3%.

Return on Equity

High ROE: NAVNETEDUL's Return on Equity (12.9%) is considered low.

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Financial Health

How is Navneet Education's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NAVNETEDUL's short term assets (₹8.1B) exceed its short term liabilities (₹2.9B).

Long Term Liabilities: NAVNETEDUL's short term assets (₹8.1B) exceed its long term liabilities (₹303.1M).

Debt to Equity History and Analysis

Debt Level: NAVNETEDUL's net debt to equity ratio (8.4%) is considered satisfactory.

Reducing Debt: NAVNETEDUL's debt to equity ratio has reduced from 23.6% to 11.3% over the past 5 years.

Debt Coverage: NAVNETEDUL's debt is not well covered by operating cash flow (5.4%).

Interest Coverage: NAVNETEDUL's interest payments on its debt are well covered by EBIT (18.1x coverage).

Balance Sheet

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Dividend

What is Navneet Education current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.73%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NAVNETEDUL's dividend (1.73%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: NAVNETEDUL's dividend (1.73%) is low compared to the top 25% of dividend payers in the Indian market (1.92%).

Stability and Growth of Payments

Stable Dividend: NAVNETEDUL's dividend payments have been volatile in the past 10 years.

Growing Dividend: NAVNETEDUL's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26%), NAVNETEDUL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: NAVNETEDUL is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average board tenure

CEO

Sunil Gala (58 yo)

no data

Tenure

₹11,665,064

Compensation

Mr. Gnanesh Dungarshi Gala, also known as Sunil, has been the Managing Director of Navneet Education Limited since June 1, 2013 and served as its Chief Financial Officer. Mr. Gala serves as Managing Direct...

CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD149.12K) is about average for companies of similar size in the Indian market ($USD207.07K).

Compensation vs Earnings: Sunil's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: NAVNETEDUL's board of directors are considered experienced (9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31