CD Equisearch
Navneet Education (Buy)
CMP: ₹98.20
Target: ₹133
Ambitious plans have been set for the Indian education industry under the current Five Year Plan to close the education gap (measured by mean years of schooling) with other emerging economies such as China (8.17 years vs 5.12 years for India) and Brazil (7.09 years).
Navneet’s B2B business (read: e-learning) has made a decent headway viz. fivefold increase in empanelment in the last four years, by astonishing success of its B2B product ‘Topclass’. Other path-breaking initiative include penetration in B2C market (read: sale of tablets) and foray in direction education space by picking a stake in K12 Techno Services — a school management company.
Earnings would advance annually by some 15 per cent over the next two years supported by syllabus changes and buoyant exports of paper stationery. Yet spectre of earning downgrades arising out of margin erosion in domestic paper stationery business and marginal changes in syllabus looms; not counting growing pressure of input costs.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.