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Last Updated on: 06 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Navneet Education Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 12:19 am

Market Cap 3,260 Cr.
Current Price 144
High / Low179/129
Stock P/E17.6
Book Value 57.2
Dividend Yield1.80 %
ROCE16.2 %
ROE15.7 %
Face Value 2.00
PEG Ratio-11.68

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Navneet Education Ltd

Competitors of Navneet Education Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gala Global Products Ltd 17.2 Cr. 3.156.29/2.80 7.790.00 %1.23 %0.33 % 5.00
DB Corp Ltd 5,759 Cr. 323405/23612.4 1254.02 %25.1 %20.2 % 10.0
Vasa Retail and Overseas Ltd (VASA) 3.45 Cr. 5.758.55/4.10 29.60.00 %5.30 %% 10.0
Sandesh Ltd 1,341 Cr. 1,7722,058/9476.51 1,6620.28 %20.9 %16.3 % 10.0
TCPL Packaging Ltd 2,983 Cr. 3,2783,671/1,90226.6 5930.67 %20.1 %21.4 % 10.0
Industry Average1,987.92 Cr482.6530.83215.011.01%11.64%10.12%6.71

All Competitor Stocks of Navneet Education Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales123216328231233322694330264409791266259
Expenses144178273214223267498307265356583270260
Operating Profit-21375417105519522-153209-4-2
OPM %-17%17%17%8%4%17%28%7%-0%13%26%-2%-1%
Other Income937881223367411743
Interest2122123234844
Depreciation13121211111611141320131516
Profit before tax-26274713793920410513319952-19
Tax %11%29%32%62%36%23%25%122%40%31%27%31%-20%
Net Profit-23193255030152-2312314536-22
EPS in Rs-0.990.821.400.222.241.356.77-0.101.361.016.411.57-1.00

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6168158929749561,1681,2031,4421,4968321,1121,6941,725
Expenses4836206827357498929791,1701,1807441,0171,4031,469
Operating Profit1331942102392072752232723158894291256
OPM %22%24%24%25%22%24%19%19%21%11%8%17%15%
Other Income11243172226232259987992
Interest711121156917191171319
Depreciation17232631302831334747505864
Profit before tax12016217620019026421024527289135298265
Tax %35%34%34%35%37%31%39%38%27%37%45%32%
Net Profit781071151301071711271531975674204181
EPS in Rs3.274.484.835.474.517.305.456.688.622.443.349.047.99
Dividend Payout %43%36%41%40%49%34%28%15%35%41%45%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)37.18%7.48%13.04%-17.69%59.81%-25.73%20.47%28.76%-71.57%32.14%175.68%
Change in YoY Net Profit Growth (%)0.00%-29.70%5.57%-30.74%77.51%-85.54%46.20%8.29%-100.33%103.72%143.53%

Navneet Education Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:4%
3 Years:28%
TTM:-2%
Compounded Profit Growth
10 Years:5%
5 Years:5%
3 Years:88%
TTM:22%
Stock Price CAGR
10 Years:4%
5 Years:7%
3 Years:8%
1 Year:-13%
Return on Equity
10 Years:16%
5 Years:12%
3 Years:12%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital484848484747464646454545
Reserves3714314965356477057458178859031,1051,248
Borrowings16923414410315924433727874135288258
Other Liabilities12113113683167158190149176186218196
Total Liabilities7098448237691,0201,1541,3181,2901,1811,2691,6571,747
Fixed Assets174187170181252255252298261249240250
CWIP65413417622476
Investments3147493224466688142167300285
Other Assets4986045995567408499848987558501,1091,206
Total Assets7098448237691,0201,1541,3181,2901,1811,2691,6571,747

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 745916216879489528626829-22156
Cash from Investing Activity -70-62-8-4-79-54-43-61-40-24-86-35
Cash from Financing Activity -66-155-170-6-79-11-201-214-2101-122
Net Cash Flow-23-1-6-6-854123143-6-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow133.0025.00-24.0095.00104.00116.00-21.00-65.0037.0014.00-41.003.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days748071718797746581807177
Inventory Days260281274244258267287236382318270265
Days Payable241814244846472372472822
Cash Conversion Cycle310343330292297318313278391350313320
Working Capital Days161186168176171202182171230196183193
ROCE %32%29%30%28%35%24%25%25%5%6%19%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters62.84%63.15%63.31%63.31%63.31%63.31%63.31%63.31%63.31%63.31%63.31%63.31%
FIIs3.78%3.66%2.94%2.42%2.65%3.10%3.42%3.36%4.03%3.54%3.67%3.38%
DIIs14.88%14.27%13.26%13.24%12.39%12.04%11.28%11.15%11.39%12.41%12.45%12.38%
Public18.50%18.91%20.49%21.03%21.65%21.53%21.98%22.17%21.61%20.73%20.56%20.92%
No. of Shareholders41,31040,64743,79641,68143,60541,75741,62839,56040,11240,12540,71642,133

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan16,047,6700.42220.6690,1392024-09-2817703.25%
Kotak Multicap Fund7,915,7761.54108.8490,1392024-09-288681.74%
Kotak Multi Asset Allocation Fund1,605,0360.5222.0790,1392024-09-281680.62%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series III96,8131.611.3390,1392024-09-287.4%
Motilal Oswal Nifty Microcap 250 Index Fund90,1390.221.2490,1392024-09-280%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series VI39,7231.350.5590,1392024-09-28-55.93%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series IV35,8531.230.4990,1392024-09-28-60.22%
Sundaram Long Term Tax Advantage Fund - Series III34,0941.30.4790,1392024-09-28-62.18%
Sundaram Long Term Micro Cap Tax Advantage Fund - Series V29,1511.220.490,1392024-09-28-67.66%
Sundaram Long Term Tax Advantage Fund - Series IV28,0991.610.3990,1392024-09-28-68.83%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)11.129.045.772.448.62
Diluted EPS (Rs.)11.129.045.772.448.62
Cash EPS (Rs.)14.0511.988.424.3810.67
Book Value[Excl.RevalReserv]/Share (Rs.)57.2050.8744.4540.6837.72
Book Value[Incl.RevalReserv]/Share (Rs.)57.2050.8744.4540.6837.72
Revenue From Operations / Share (Rs.)77.4275.0149.2636.4766.07
PBDIT / Share (Rs.)13.6413.838.024.4014.68
PBIT / Share (Rs.)10.7511.265.822.3412.63
PBT / Share (Rs.)12.8813.588.873.7611.88
Net Profit / Share (Rs.)11.169.416.232.328.62
NP After MI And SOA / Share (Rs.)11.129.045.802.448.62
PBDIT Margin (%)17.6118.4316.2812.0622.21
PBIT Margin (%)13.8815.0011.826.4119.11
PBT Margin (%)16.6318.1018.0110.2917.98
Net Profit Margin (%)14.4112.5412.646.3613.04
NP After MI And SOA Margin (%)14.3612.0511.776.7013.04
Return on Networth / Equity (%)19.4517.7813.076.0122.86
Return on Capital Employeed (%)18.1121.3512.725.5932.17
Return On Assets (%)14.3912.349.904.7315.29
Total Debt / Equity (X)0.180.240.110.040.27
Asset Turnover Ratio (%)1.031.070.830.641.10
Current Ratio (X)2.732.272.833.232.19
Quick Ratio (X)1.150.921.201.380.98
Inventory Turnover Ratio (X)1.301.681.220.791.37
Dividend Payout Ratio (NP) (%)0.0016.5817.300.0055.95
Dividend Payout Ratio (CP) (%)0.0012.9212.550.0045.21
Earning Retention Ratio (%)0.0083.4282.700.0044.05
Cash Earning Retention Ratio (%)0.0087.0887.450.0054.79
Interest Coverage Ratio (X)15.4626.8729.129.9419.61
Interest Coverage Ratio (Post Tax) (X)10.2313.7911.542.0412.52
Enterprise Value (Cr.)3337.812405.952109.431852.631643.57
EV / Net Operating Revenue (X)1.911.421.892.221.09
EV / EBITDA (X)10.827.6911.6318.404.89
MarketCap / Net Operating Revenue (X)1.781.271.822.200.93
Retention Ratios (%)0.0083.4182.690.0044.04
Price / BV (X)2.411.882.021.971.64
Price / Net Operating Revenue (X)1.781.271.822.200.93
EarningsYield0.080.090.060.030.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Navneet Education Ltd as of October 6, 2024 is: ₹160.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 6, 2024, Navneet Education Ltd is Undervalued by 11.74% compared to the current share price ₹144.00

Intrinsic Value of Navneet Education Ltd as of October 6, 2024 is: ₹158.48

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 6, 2024, Navneet Education Ltd is Undervalued by 10.06% compared to the current share price ₹144.00

Last 5 Year EPS CAGR: -1.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.83%, which is a positive sign.
  2. The company has higher reserves (740.67 cr) compared to borrowings (201.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (391.69 cr) and profit (202.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 184.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 321.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Navneet Education Ltd:
    1. Net Profit Margin: 14.41%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 18.11% (Industry Average ROCE: 10.95%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.45% (Industry Average ROE: 8.93%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 10.23
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.15
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 17.6 (Industry average Stock P/E: 21.77)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.18
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Navneet Education Ltd. is a Public Limited Listed company incorporated on 18/09/1984 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L22200MH1984PLC034055 and registration number is 034055. Currently Company is involved in the business activities of Manufacture of other paper products. Company’s Total Operating Revenue is Rs. 1060.52 Cr. and Equity Capital is Rs. 45.24 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Printing/Publishing/StationeryNavneet Bhavan, Mumbai Maharashtra 400028investors@navneet.com
http://www.navneet.com
Management
NamePosition Held
Mr. Kamlesh S VikamseyChairman
Mr. Gnanesh D GalaManaging Director
Mr. Raju H GalaJoint Managing Director
Mr. Dilip C SampatWhole Time Director
Mr. Shailendra J GalaWhole Time Director
Mr. Anil D GalaWhole Time Director
Mr. Anil SwarupDirector
Dr. Vijay B JoshiDirector
Mrs. Usha LaxmanDirector
Mr. K I ViswanathanDirector
Mr. Tushar K JaniDirector

FAQ

What is the latest fair value of Navneet Education Ltd?

The latest fair value of Navneet Education Ltd is ₹160.90.

What is the Market Cap of Navneet Education Ltd?

The Market Cap of Navneet Education Ltd is 3,260 Cr..

What is the current Stock Price of Navneet Education Ltd as on 06 October 2024?

The current stock price of Navneet Education Ltd as on 06 October 2024 is ₹144.

What is the High / Low of Navneet Education Ltd stocks in FY 2024?

In FY 2024, the High / Low of Navneet Education Ltd stocks is 179/129.

What is the Stock P/E of Navneet Education Ltd?

The Stock P/E of Navneet Education Ltd is 17.6.

What is the Book Value of Navneet Education Ltd?

The Book Value of Navneet Education Ltd is 57.2.

What is the Dividend Yield of Navneet Education Ltd?

The Dividend Yield of Navneet Education Ltd is 1.80 %.

What is the ROCE of Navneet Education Ltd?

The ROCE of Navneet Education Ltd is 16.2 %.

What is the ROE of Navneet Education Ltd?

The ROE of Navneet Education Ltd is 15.7 %.

What is the Face Value of Navneet Education Ltd?

The Face Value of Navneet Education Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Navneet Education Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE