Navneet Education Receives 'Sell' Rating from MarketsMOJO Due to Poor Growth and Expensive Valuation

Navneet Education, a smallcap company in the printing and publishing industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -3.93% over the last 5 years. Additionally, the company's ROCE of 15.1 indicates a very expensive valuation, with an enterprise value to capital employed ratio of 2.3.
The stock is currently trading at a premium compared to its historical valuations and has underperformed the market in the last year, with a return of only 19.92% compared to the market's 33.06%. The PEG ratio of the company is also high at 1.8, indicating that its profits have not kept up with its stock price growth.

On a positive note, Navneet Education has a low debt to equity ratio and has recently declared positive results after two consecutive negative quarters. Its PBT LESS OI(Q) has grown by 86.11% and its PAT(Q) has grown by 108.2%. However, the technical trend for the stock is currently sideways, with no clear price momentum.

The majority shareholders of Navneet Education are its promoters, and the company has a market cap of Rs 3,349 crore, making it the second biggest company in the printing and publishing sector. Its annual sales of Rs 1,751.27 crore account for 16.69% of the industry. Based on these factors, MarketsMOJO has downgraded its stock call on Navneet Education to 'Sell'.