Navneet Education Limited (NAVNETEDUL) AI Stock Analysis

• Market Cap: ₹35.71B
• Dividend Yield: 2.03%
• Average Volume (3M): 21.71K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.57
• Revenue Growth: -0.37%
• EPS Growth: -71.05%
• Country: IN
• Employees: 3,098
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Publishing
• EPS (TTM): 7.78
• Shares Outstanding: 221,213,180
• 10 Day Avg. Volume: 10,352
• 30 Day Avg. Volume: 21,712
• PEG Ratio: 0.02
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 19.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ₹187.00 ▲(30.86% Upside)

The score is driven primarily by strong profitability and a low-leverage balance sheet, supported by an attractive valuation (low P/E) and favorable price trend/momentum. Key risk factors weighing on the score are the recent revenue decline and sharply negative free cash flow growth.

Positive Factors

High Profitability

Elevated EBIT and net margins indicate strong pricing power and efficient cost structure in core publishing and stationery lines. Sustained margins support internal reinvestment and shareholder returns, making earnings more resilient to modest top-line weakness over the next several quarters.

Low Leverage / Strong Capital Structure

Very low leverage and a high equity ratio provide financial flexibility to invest in digital initiatives or weather cyclical dips. Strong ROE shows capital is being deployed effectively, reducing refinancing risk and supporting stable operations without heavy interest burdens.

Diversified Education Revenue Streams

A multi-segment model (textbooks, stationery, digital solutions) reduces dependence on any single product cycle or academic season. Diversification supports steadier revenue mix, cross-sell opportunities, and potential margin uplift as digital adoption scales over the medium term.

Negative Factors

Recent Revenue Decline

Sustained or recurring top-line decline erodes operating leverage and can pressure margins despite current profitability. If market share or demand in key textbook or stationery segments continues to slip, long-term growth and reinvestment capacity could be constrained.

Very Weak Free Cash Flow Growth

A sharp contraction in FCF growth limits the firm's ability to fund capex, digital investments, dividends, or deleveraging from operating cash. Even with good operating margins, weaker FCF trajectory raises questions about working capital cycles or one-off cash drains that could persist.

Earnings Volatility / EPS Drop

A large decline in EPS points to volatility in profitability or one-off charges that hurt reported earnings. This volatility complicates forecasting and may indicate sensitivity to cyclical demand, pricing, or cost pressures that could impair consistent shareholder returns over the medium term.

Navneet Education Limited Business Overview & Revenue Model

Company Description

Navneet Education Limited publishes state board publication books and stationery products in India, North and Central America, Africa, Europe, and internationally. It operates through three segments: Publication, Stationery, and Others. The Publishing segment consists of supplementary books, such as workbooks, guides, and question banks that are based on the latest prescribed syllabus by state education boards. The Stationery segment offers paper stationery products, such as note, long, and drawing books; and non-paper-based stationery products. The Others segment engages in the generation of power by windmill and solar panels; and trading activities. The company is also involved in the school management business; and offers e-learning products and services. It markets and sells its products under the Navneet, Vikas, Gala, Rise, Grafalco, Youva, TopScorer, Top Class, Top Assessment, Leapbridge, Top Class, and Study Buddy 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 headquartered in Mumbai, India.

How the Company Makes Money

Navneet Education Limited generates revenue through multiple streams, primarily from the sale of educational books and materials, which include school textbooks, reference books, and workbooks. The company also earns income from its stationery products, comprising notebooks, art supplies, and other educational tools. Additionally, Navneet has ventured into the digital education space, offering online learning solutions and educational software, which contribute to its revenue. Strategic partnerships with schools and educational institutions enhance its distribution network and market reach, further solidifying its revenue base. The company's consistent focus on innovation and quality products helps maintain customer loyalty and drive sales.

Navneet Education Limited Financial Statement Overview

Summary

Strong profitability and balance sheet strength (high net/EBIT margins, low debt-to-equity, and high ROE) are partially offset by an 8.4% revenue decline and very weak free cash flow growth (-235.65%).

Income Statement

Navneet Education Limited has demonstrated strong profitability with a high net profit margin of 42.47% and a robust EBIT margin of 53.72% in the latest fiscal year. However, the company experienced a revenue decline of 8.4%, which is a concern for future growth. The gross profit margin remains healthy at 46.73%, indicating efficient cost management.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.11, reflecting prudent leverage management. Return on equity is impressive at 41.34%, showcasing strong profitability relative to shareholder equity. The equity ratio of 77.93% indicates a strong capital structure with significant equity financing.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth at -235.65%. However, the operating cash flow to net income ratio of 0.81 suggests reasonable cash generation relative to net income. The free cash flow to net income ratio of 58.29% indicates decent cash conversion, though improvements are needed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.82B	17.86B	17.36B	16.97B	11.00B	8.35B
Gross Profit	8.47B	8.34B	4.08B	7.33B	4.45B	3.76B
EBITDA	3.72B	10.25B	3.78B	3.65B	1.91B	1.46B
Net Income	2.14B	7.58B	2.52B	2.05B	755.60M	559.30M
Balance Sheet
Total Assets	0.00	23.54B	17.47B	16.57B	12.69B	11.81B
Cash, Cash Equivalents and Short-Term Investments	492.50M	492.50M	215.60M	247.10M	262.30M	211.40M
Total Debt	0.00	2.00B	2.58B	2.88B	1.35B	741.40M
Total Liabilities	-18.74B	4.80B	4.53B	5.06B	3.19B	2.50B
Stockholders Equity	18.74B	18.34B	12.93B	11.50B	9.48B	9.30B
Cash Flow
Free Cash Flow	-2.36B	1.60B	645.20M	-725.50M	-91.30M	2.36B
Operating Cash Flow	-1.85B	2.74B	1.40B	-216.60M	291.20M	2.68B
Investing Cash Flow	68.20M	1.15B	-353.90M	-858.90M	-241.30M	-401.20M
Financing Cash Flow	369.10M	-3.72B	-1.22B	1.01B	-20.90M	-2.14B

Navneet Education Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NAVNETEDUL, the sentiment is Positive. The current price of 142.9 is below the 20-day moving average (MA) of 145.46, below the 50-day MA of 145.01, and below the 200-day MA of 146.48, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 70.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NAVNETEDUL.

Navneet Education Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAVNETEDUL	80 Outperform	₹35.71B	9.91	―	2.03%	-0.37%	-71.05%
JAGRAN	76 Outperform	₹14.52B	8.45	―	15.46%	0.72%	-4.52%
SCHAND	68 Neutral	₹5.78B	11.29	―	4.27%	9.36%	26.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHIVAMAUTO	47 Neutral	₹3.00B	-4.33	―	―	-11.18%	-22.17%
TREEHOUSE	41 Neutral	₹311.41M	-1.90	―	―	-35.95%	-416.59%

Navneet Education Limited Corporate Events

CARE Reaffirms High Credit Ratings for Navneet Education’s Bank Facilities

Navneet Education Limited has announced that CARE Ratings has reaffirmed its credit ratings for the company’s bank facilities, maintaining a CARE AA; Stable rating for its long-term bank facilities and a CARE A1+ rating for its short-term facilities, covering a total sanctioned amount of ₹452 crore. The reaffirmation, based on the company’s audited FY25 and unaudited H1 FY26 operational and financial performance, underscores the rating agency’s continued confidence in Navneet Education’s credit profile and financial stability, which supports the company’s funding flexibility and reinforces its standing with lenders and other financial stakeholders.

Navneet Education to Merge Indiannica Publishing Business Into Parent for Portfolio Consolidation

Navneet Education’s board has approved a composite scheme of arrangement to demerge the publishing business of its wholly owned subsidiary, Indiannica Learning Private Limited, into the parent company, alongside a reduction of Indiannica’s equity share capital, preference share capital and securities premium. The transaction, which involves transferring the subsidiary’s publishing operations, assets and liabilities as a going concern, is intended to consolidate Navneet’s publishing activities—particularly the CBSE and ICSE-focused portfolio—into a single entity, enhancing operational alignment within its core K–12 education segment; the scheme remains subject to requisite approvals, including that of the National Company Law Tribunal.