Printing & Publication
Navneet Education Limited, together with its subsidiaries, engages in publishing state board publication books and stationery products in India, North and Central America, Africa, Europe, and internationally. The company operates through Publication, Stationery, and Others segments. The Publishing segment consists of educational textbooks and supplementary materials, such as workbooks, guides, and question banks that are based on the latest prescribed syllabus by state, CBSE, and ICSE curriculums. The Stationery segment offers various products for paper and non-paper categories. The Others segment engages in the generation of power by windmill and solar panels; and trading activities. It also provides e-learning; creates digital content; and offers non-curriculum books, such as children and general books. Navneet Education Limited markets and sells its products under the Navneet, Vikas, Gala, Rise, Grafalco, and Youva brand names. The company was formerly known as Navneet Publications (India) Limited and changed its name to Navneet Education Limited in August 2013. Navneet Education Limited was founded in 1959 and is based in Mumbai, India.
Valuation | |
---|---|
Market Cap | 3.14 kCr |
Price/Earnings (Trailing) | 3.9 |
Price/Sales (Trailing) | 1.69 |
EV/EBITDA | 3.04 |
Price/Free Cashflow | 16.32 |
MarketCap/EBT | 3.33 |
Fundamentals | |
---|---|
Revenue (TTM) | 1.85 kCr |
Rev. Growth (Yr) | 8.74% |
Rev. Growth (Qtr) | 0.78% |
Earnings (TTM) | 804.57 Cr |
Earnings Growth (Yr) | 170.3% |
Earnings Growth (Qtr) | 428.38% |
Profitability | |
---|---|
Operating Margin | 16.48% |
EBT Margin | 50.91% |
Return on Equity | 43.65% |
Return on Assets | 36.04% |
Free Cashflow Yield | 6.13% |
Detailed comparison of Navneet Education against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
APTECHT | AptechEducation | 906.59 Cr | 462.5 Cr | +33.67% | -37.94% | 53.69 | 1.96 | -11.99% | -71.69% |
SCHAND | S Chand And Co.Printing & Publication | 723.96 Cr | 692.93 Cr | +21.72% | -11.64% | 15.44 | 1.04 | +9.46% | +90.46% |
CAREERP | Career PointEducation | 716.62 Cr | 119.35 Cr | -6.18% | +8.66% | 11.87 | 6 | +7.03% | +127.39% |
ZEELEARN | ZEE LEARNEducation | 204.41 Cr | 353.3 Cr | +13.43% | +4.17% | 1.24 | 0.58 | -5.68% | +153.08% |
MTEDUCARE | MT EDUCAREOther | 16.9 Cr | 51.2 Cr | +7.21% | -33.43% | -0.61 | 0.33 | -1.35% | +57.11% |
Analysis of Navneet Education's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
b. Stationery Products | 59.2% | 166.7 Cr |
a. Publishing Content | 40.8% | 115 Cr |
Total | 281.7 Cr |
Investor Care | |
---|---|
Dividend Yield | 2.89% |
Dividend/Share (TTM) | 4.1 |
Shares Dilution (1Y) | 2.21% |
Diluted EPS (TTM) | 33.56 |
Financial Health | |
---|---|
Current Ratio | 3.74 |
Debt/Equity | 0.02 |
Debt/Cashflow | 0.99 |
Summary of Navneet Education's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook and Key Points:
1. Publication Business:
2. Domestic Stationery:
3. Export Stationery:
4. Technology & Innovation:
5. Indiannica (CBSE-focused subsidiary):
6. Capex & Expansion:
7. Risks & Mitigation:
Overall Outlook:
Management remains confident in long-term growth, targeting 10"“12% revenue growth in publications and margin recovery in stationery. Emphasis on innovation, digital integration, and geographic expansion (exports) to drive sustainable growth.
Last updated: Feb 25
Question 1:
Sir, what was the value of the institutional order that boosted the growth in the publication business? If you can share that number? Also, who is the client? And if you can clarify the nature of the relationship here because I thought that typically guides and 21 Sets are sold over the counter through the dealer distribution model.
Answer:
The institutional order value was Rs.15 crores, primarily from corporates and government departments aiming to provide supplemental educational materials to schools. These orders are expected to remain sustainable due to growing demand for improved learning outcomes in underserved schools.
Question 2:
What is the outstanding order book currently? I know it's like just a novel venture for us, but do we have any number to share?
Answer:
No outstanding institutional orders exist currently. Orders for the publication business are seasonal, typically received between Q1 and Q2, with none pending as of now.
Question 3:
Got that. And sir, secondly, I just wanted to understand this 24% decline that we have witnessed in the domestic stationery business. Now while I understand that a fall in RM prices will eventually lead to repricing of the product at a lower level. But over here, the fall is about 22%. So just wanted to check, is this essentially a repricing or are we losing market share over here?
Answer:
The 24% revenue decline was due to a 10% price reduction (from lower RM costs) and 15% volume drop. Distributors delayed restocking amid falling prices. Recovery is expected in Q4 as paper prices stabilize and restocking resumes.
Question 4:
Sir, one last question from my side. Now in this quarter, we recognized a fair value gain of about Rs.25 crores on our K-12 investment. Now in the notes to accounts, we have mentioned that this gain had come through because we decided to exercise the option. So if you can clarify what does this exactly mean? And going ahead, how will the revaluation happen from here on?
Answer:
The Rs.25 crore gain reflects fair-value adjustments post a secondary transaction (Sofina selling 5% equity to a Singapore investor). Future revaluations will follow market price discoveries via transactions or valuation reports.
Question 5:
Sir, I wanted to know what was the Indiannica revenue and PAT this quarter and what is your guidance for FY '25 and '26 for Indiannica?
Answer:
Indiannica's Q3 revenue was Rs.6 crores, with 9M revenue significantly higher YoY. FY25 guidance: Rs.65"“70 crores revenue and Rs.2"“3 crores PAT. Losses in early quarters are typical due to seasonal spending, with profitability expected in Q4.
Question 6:
Sir, can you please guide on the margins for publication as well as stationery like how much growth are you expecting margin in FY '25? And similarly in FY '26 over FY '25, what can be the improvement in margin for both publication and stationery business respectively?
Answer:
Publication margins: FY25: 27"“28%; FY26: ~30% with revenue growth. Stationery margins: FY25: 10"“11% (export-driven); FY26: 13"“14% as domestic recovers.
Question 7:
Trump has recently imposed tariff of 10% on China. So do you think it will benefit us in receiving higher orders from USA? And another part would be, is there any antidumping duty imposed or have you heard anything about that, that it might happen? Any color on that?
Answer:
Short-term benefits possible from US-China tariffs, but long-term adjustments (e.g., Chinese shifts to other regions) may negate gains. No new antidumping duties on Indian exports currently. US demand remains robust despite pricing pressures.
Question 8:
Sir, what would be the market share between the 2 of us [Navneet vs. Chetana]? And is there any pricing difference in our product versus their product?
Answer:
Navneet holds 50"“55% market share in Maharashtra vs. Chetana's ~15%. Pricing is comparable, with differentiation driven by content quality and features.
Question 9:
Sir, are you sure about that from current year or from the next year, the Indiannica will not make any loss, at least it achieves a breakeven?
Answer:
Yes, Indiannica is projected to turn profitable in FY25 (Rs.2"“3 crores PAT) after years of strategic investment, driven by CBSE adoption and seasonal Q4 revenue.
Question 10:
FY '26 growth number estimate?
Answer:
Publication: 12% YoY growth (curriculum changes, reduced second-hand book sales). Stationery: Volume recovery in domestic (15% growth) and sustained export momentum (15% growth).
Dividend: Dividend paying stock. Dividend yield of 2.89%.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Profitability: Very strong Profitability. One year profit margin are 43%.
Technicals: Bullish SharesGuru indicator.
Balance Sheet: Strong Balance Sheet.
No major cons observed.
Comprehensive comparison against sector averages
NAVNETEDUL metrics compared to Printing
Category | NAVNETEDUL | Printing |
---|---|---|
PE | 3.99 | -96.80 |
PS | 1.73 | 1.54 |
Growth | 6.7 % | -2.5 % |
NAVNETEDUL vs Printing (2021 - 2025)
Understand Navneet Education ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Bipin Amarchand Gala (Trustee of Navneet Trust) | 40.44% |
Hdfc Mutual Fund - Hdfc Mid-Cap Opportunities Fund | 7.11% |
Kotak Mahindra Trustee Co Ltd A/C Kotak Multicap Fund | 4.36% |
Bipin A Gala | 2.55% |
Kalpesh H Gala | 2.1% |
Bowhead India Fund | 1.93% |
Gnanesh Dungarshi Gala | 1.86% |
Sandeep S Gala | 1.85% |
Sanjeev J Gala | 1.55% |
Shailendra J Gala | 1.54% |
Anil Dungarshi Gala | 1.46% |
Raju H Gala | 1.08% |
Ketan B Gala | 1.08% |
Devish Gnanesh Gala | 0.63% |
Priti Gnanesh Gala | 0.6% |
Sangita Raju Gala | 0.56% |
Bhairaviben Anil Gala | 0.55% |
Harshil Anil Gala | 0.43% |
Manjulaben J Gala | 0.42% |
Vimlaben S Gala | 0.41% |
Distribution across major stakeholders
Distribution across major institutional holders