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C o n v e r t i n g k n o w l e d g e i n t o w e a l t h …
We met the management of Navneet Publications to understand the
company’s business and plans, going forward. Navneet Publications’
(Navneet) business consists of two major segments: publishing
supplementary books (educational, children & general books - like
children’s activity books, health books, cookeries, etc) and stationery
products including paper and non-paper based stationery products.
Apart from these two main segments, Navneet is also present in the elearning space. The classroom teaching software available in CDs
contains animated clips that enable teachers to explain the concepts in
a better way. It also has a retail product that can be used by students at
home.
Strong brand recognition
Navneet has been the leader in the supplementary education book space.
The Indian education system is examination-centric and success is
equated with high marks. In this backdrop, supplementary books, with
examination-focused questions and answers, have gained high
significance. Navneet primarily caters to Gujarat and Maharashtra. It has
consistently enjoyed a dominant market share of 60–65% in the
supplementary education books segment in these states.
Leverage on publications business
Unlike the high margin publication business, the stationery business is a
volume play. Having been in the publication business for a considerable
period of time, Navneet has long standing relations with various retailers
and can leverage this to further grow its stationery business.
Healthy return ratios and consistent dividend payout
Navneet has been maintaining its RoEs and RoCEs in the range of 20-25%
and 25%+, respectively, for at least the last five years. It has continually
rewarded its stakeholders. It has paid dividends each year and also
maintained a dividend payout ratio of close to 40% for the last 20 years.
V i e w
While the publication business brings in stability to the P&L, the stationery
segment also has scalability. Going forward, the company expects both
segments to contribute equally to the topline. The e-learning initiative of
the company will also boost the revenues once it gains critical mass
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
C o n v e r t i n g k n o w l e d g e i n t o w e a l t h …
We met the management of Navneet Publications to understand the
company’s business and plans, going forward. Navneet Publications’
(Navneet) business consists of two major segments: publishing
supplementary books (educational, children & general books - like
children’s activity books, health books, cookeries, etc) and stationery
products including paper and non-paper based stationery products.
Apart from these two main segments, Navneet is also present in the elearning space. The classroom teaching software available in CDs
contains animated clips that enable teachers to explain the concepts in
a better way. It also has a retail product that can be used by students at
home.
Strong brand recognition
Navneet has been the leader in the supplementary education book space.
The Indian education system is examination-centric and success is
equated with high marks. In this backdrop, supplementary books, with
examination-focused questions and answers, have gained high
significance. Navneet primarily caters to Gujarat and Maharashtra. It has
consistently enjoyed a dominant market share of 60–65% in the
supplementary education books segment in these states.
Leverage on publications business
Unlike the high margin publication business, the stationery business is a
volume play. Having been in the publication business for a considerable
period of time, Navneet has long standing relations with various retailers
and can leverage this to further grow its stationery business.
Healthy return ratios and consistent dividend payout
Navneet has been maintaining its RoEs and RoCEs in the range of 20-25%
and 25%+, respectively, for at least the last five years. It has continually
rewarded its stakeholders. It has paid dividends each year and also
maintained a dividend payout ratio of close to 40% for the last 20 years.
V i e w
While the publication business brings in stability to the P&L, the stationery
segment also has scalability. Going forward, the company expects both
segments to contribute equally to the topline. The e-learning initiative of
the company will also boost the revenues once it gains critical mass
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