Navneet’s (NELI) results were broadly in-line with our estimates in a seasonally strong quarter with revenues increasing 18.7% YoY to Rs7,950mn (PLe of Rs7,353mn; beat by ~8%) aided by 1) syllabus changes in Gujarat & Maharashtra (refer exhibit 6 for full syllabus change schedule) and 2) low base effect (publishing revenue declined in 1QFY19 due to lack of clarity over license issue with Maharashtra State Board). EBITDA increased 17.2% YoY to Rs2,314mn and was in-line with our estimate with margins declining 40bps YoY to 29.1%. PAT increased 16.7% YoY to Rs1,474mn (PLe of Rs1,436mn). However, PAT margin declined 40bps YoY to 18.5%. Given the current quarter performance, we believe NELI is on track to achieve growth guidance of ~15% in publishing business and ~16-17% in stationary business for FY20. Thus, we keep our estimates broadly unchanged. Valuations at 11x FY20E and 10x FY21E appear attractive given 24.8% bottom line CAGR over FY19-21E, superior return ratios, strong dividend pay-out and narrowing losses in E- sense. However, we marginally cut our target multiple to 15x (earlier 16x) given delay in turnaround time of ILL acquisition. Maintain BUY with a TP of Rs134 (earlier Rs142).