Motilal Oswal initiates coverage on Navneet Education with 'buy'

Mumbai: Motilal Oswal has initiated coverage on Navneet Education with a buy rating and a target price of Rs 210.

The brokerage believes that the company is perfectly placed to capture multiple growth triggers like changing syllabus, common curriculum across India and increasing conversion of state education board schools to CBSE.

Navneet Education derives 54% of its revenue from publishing and 43% from stationery. The company's products are sold under the brand Navneet, Vikas, Gala, Grafalco, Youva and eSense.

The brokerage said Britannica India's curriculum business, which Navneet Education recently acquired, would be synergic to the company's CBSE curriculum business.

"We expect 22% revenue CAGR and 26% PAT CAGR over FY17-19," said Motilal Oswal in a note.