Navneet Education Receives 'Sell' Rating from MarketsMOJO Due to Poor Growth and Lackluster Financial Results

Navneet Education, a smallcap company in the printing and publishing industry, has recently received a 'Sell' rating from MarketsMOJO on October 7, 2024. 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.
In addition, the company's recent financial results for June 2024 have been lackluster, with a 35.48% increase in interest expenses and a decrease in cash and cash equivalents to the lowest at Rs 24.71 crore. The company's profits have also fallen by -7.9% to Rs 133.41 crore.

Not only has Navneet Education underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, but it has also generated a negative return of -14.18% in the last 1 year. This indicates a below-par performance in both the long-term and near-term.

Other factors contributing to the 'Sell' rating include a low debt to equity ratio of 0.01 times and a sideways technical trend, indicating no clear price momentum. While the technical trend has improved from 'Mildly Bearish' on October 4, 2024, the stock has only generated a return of -1.49% since then. The MACD and Bollinger Band technical factors also suggest a sideways trend.

With a ROCE of 15.1, Navneet Education is currently fairly valued with a 2.3 Enterprise value to Capital Employed. However, the stock is trading at a premium compared to its average historical valuations. Additionally, while the stock has generated a negative return of -14.18% in the past year, its profits have also fallen by -0.6%.

It is worth noting that the majority shareholders of Navneet Education are the promoters themselves. This may raise concerns about the company's future potential and investor interest. However, based on the current facts and figures, MarketsMOJO has downgraded the stock to 'Sell'.