Initiating Coverage – Navneet Publications India Ltd
We initiate coverage on Navneet Publications (India) Limited (NPIL) with a BUY and a Price Objective of Rs. 79 representing a potential upside of ~34.4% over a period of 24 months. At the CMP of Rs. 59, the stock is trading at 12.2x and 10.0x its estimated earnings for FY14 & FY15 respectively.
On the back of multiple growth drivers viz. proposed common curriculum, geographic expansion and improved visibility of e-learning business, we expect revenues to grow at a CAGR of 17.5% to Rs. 1,022.2 crore by FY15E from Rs. 630 crore in FY12. Further, EBITDA margins are expected to improve from 20.8% to 23.2% by FY15E as the incremental revenues from eSense business will flow directly to EBITDA.
We expect PAT to grow at a CAGR of 21.5% to Rs. 139.9 crore in FY15E from Rs. 78.0 crore in FY12. Further, we have cautiously not factored Rs. 750 crore digital learning order received by NPIL from Directorate of Primary Education, Maharashtra and remains a substantial upside risk to our estimates. On the most conservative basis, we expect ~64% upside to our FY15 EPS estimate of Rs. 5.9 per share.
Read full report : Initiating Coverage – Navneet Publications India Ltd
Disclaimer: Ventura Securities Ltd has taken due care and caution in compilation of data for its web blog. The information has been obtained from different sources which it considers reliable. However, Ventura Securities Ltd does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Ventura Securities Ltd especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its web blog. The information provided herein is just for the knowledge purpose and shouldn’t be construed as investment advice under any circumstances.