Navneet Education Receives 'Sell' Rating and Underperforms Market in Recent Years

Navneet Education, a smallcap company in the printing and publishing industry, has recently received a 'Sell' rating from MarketsMOJO on September 24, 2024. This downgrade is based on the company's poor long-term growth, with an annual operating profit growth rate of -3.93% over the last 5 years.
In addition, the company's recent financial results for June 2024 have been lackluster, with a 35.48% increase in interest expenses and a decrease in cash and cash equivalents to the lowest at Rs 24.71 crore. The company's profits have also fallen by -7.9% in the same period.

Not only has Navneet Education underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, but it has also generated a negative return of -2.29% in the last 1 year. The technical trend for the stock is currently sideways, indicating no clear price momentum, and has deteriorated from mildly bullish to -1.05% returns since September 24, 2024.

On the positive side, the company has a low debt to equity ratio of 0.01 times and a fair valuation with a ROCE of 15.1 and an enterprise value to capital employed ratio of 2.4. However, the stock is currently trading at a premium compared to its average historical valuations.

It is worth noting that the majority shareholders of Navneet Education are promoters, which may have an impact on the company's decision-making and future performance. Overall, with the recent downgrade and underwhelming financial results, it may be wise for investors to approach Navneet Education with caution.