Navneet Education receives 'Hold' rating from MarketsMOJO after positive results in March 2024

Navneet Education, a smallcap company in the printing and publishing industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results in March 2024, following two consecutive negative quarters. The company's PBT LESS OI(Q) has grown by 86.11% and PAT(Q) has grown by 108.2%.
One of the reasons for the 'Hold' rating is the company's low Debt to Equity ratio, which is at 0.01 times on average. Additionally, the stock is currently in a bullish range and the technical trend has improved from sideways on 24-Jun-24. Multiple factors such as MACD, Bollinger Band, and KST also indicate a bullish outlook for the stock.

Navneet Education is the second biggest company in the sector, with a market cap of Rs 3,466 crore and constituting 18.61% of the entire sector. Its annual sales of Rs 1,751.27 crore make up 16.69% of the industry. However, the company has shown poor long-term growth with an annual operating profit growth rate of -3.93% over the last 5 years.

The company's ROCE of 15.1 indicates an expensive valuation with a 2.4 Enterprise value to Capital Employed. The stock is also trading at a premium compared to its average historical valuations. While the stock has generated a return of 24.65% in the last year, its profits have only risen by 11.2%, resulting in a PEG ratio of 1.8.

In the last year, Navneet Education has underperformed the market, with a return of 24.65% compared to the market's (BSE 500) return of 38.50%. With majority shareholders being promoters, it remains to be seen how the company will perform in the future. For now, MarketsMOJO has given a 'Hold' rating for Navneet Education's stock.