Neutral on Navneet Education, target Rs 149: Motilal Oswal

Motilal Oswal has a neutral call on Navneet Education Ltd. with a target price of Rs 149. The current market price of Navneet Education Ltd. is Rs 129.5 Time period given by analyst is year when Navneet Education Ltd. price can reach defined target.
Navneet Education Ltd., incorporated in 1984, is a mid-cap company with a market cap of Rs 3024.58 crore.

Investment rationale by Motilal Oswal
Due to the lack of clarity on the final policy, the license fee charges and the timeline to obtain the licenses, we cut our PAT estimates by 31%/36% for FY19/20. We, however, see upside risk to our estimates from earlier-than-expected declaration of the final policy and speedier license approval. We value the stock at 18x FY20E earnings of INR8.3/share and downgrade our rating to Neutral with a revised target price of INR149/share.