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Check Before You Invest : Navneet Education Ltd

BSE: 508989 NSE: NAVNETEDUL ISIN: INE060A01024
  |   Sector:  Media   |   Industry:  Printing And Publishing

Snapshot

Q.1 Which industry/sub-sector does Navneet Education Ltd belong to?
Navneet Education Ltd belongs to the Media sector, operating specifically within the Printing And Publishing segment.
Q.2 Is Navneet Education Ltd a good quality company?
Navneet Education Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Navneet Education Ltd undervalued or overvalued?
Navneet Education Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 9.07 14.12
Price to Book 1.54 1.85
Price to Sales 1.9 1.87
EV to EBITDA 9.29 9.99
Q.4 Is Navneet Education Ltd a good buy now?
Navneet Education Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Navneet Education Ltd?
Navneet Education Ltd revenue growth is 2% for FY-2025, which is below its 5-year CAGR of 3.38%, indicating slower growth.

Q.2 Gross Profit margin of Navneet Education Ltd?
Navneet Education Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.1% for FY-2025, which is above its 5-year median of 16.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Navneet Education Ltd?
Navneet Education Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.91% for FY-2025, which is above its 5-year median of 16.93% indicating increasing margins.

Q.4 Net Profit Margin of Navneet Education Ltd?
Navneet Education Ltd Net Profit Margin is 45.01% for FY-2025, is above its 5-year median of 12.01%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 18.1 16.5
Operating Profit Margin (%) 17.91 16.93
Net Profit Margin (%) 45.01 12.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Navneet Education Ltd?
Navneet Education Ltd Return on Asset is 39.2%, which is above its 5-year historical median of 13.93%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Navneet Education Ltd?
Navneet Education Ltd Return on capital employed is 54.91% for FY-2025, which is above its 5-year historical median of 21.04%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Navneet Education Ltd?
Navneet Education Ltd Return on equity is 51.4% for FY-2025, which is above its 5-year historical median of 19.42%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Navneet Education Ltd?
Navneet Education Ltd Cash conversion cycle is 187 days, in line with its 5-year historical median of 187 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.87 0.91
ROE (%) 51.4 19.42
ROCE (%) 54.91 21.04
Cash Conversion Cycle 187 days 187 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Navneet Education Ltd?
Navneet Education Ltd Debt-to-Equity ratio is 0.07, which is lower the industry average of 0.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Navneet Education Ltd?
Navneet Education Ltd Debt to cash flow from operations is 0.45, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Navneet Education Ltd?

Q.1 Promoter shareholding and pledge status of Navneet Education Ltd?
Promoters hold 63.29% of the Navneet Education Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Navneet Education Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Navneet Education Ltd vs industry peers?
Navneet Education Ltd revenue CAGR is 3.38%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 2 0
Gross Profit Growth (%) 12.1 -0.7
Operating Profit Growth (%) 7.7 0.3
Net Profit Growth (%) 219.1 6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.87 0.48
ROE (%) 51.4 1.46
ROCE (%) 54.91 5.77
Cash Conversion Cycle (days) 187.22 60

Valuation & price assessment

Q.1 Stock return of Navneet Education Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
5.4% 14.7% 12% 3%
Q.2 Valuation ratios of Navneet Education Ltd vs historical?
The current P/E ratio of 9.07 is lower than its historical median of 14.12, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 9.07 14.12 13.31
Price to Book 1.54 1.85 1.11
Price to Sales 1.9 1.87 1.88
EV to EBITDA 9.29 9.99 9.67

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