HDFC Securities has reiterated 'Buy' on Navneet Education (NEL) with target price of Rs 90 as against current market price (CMP) of Rs 83 in its report.

Commenting on the investment rationale, HDFC Securities said, ''Navneet Education's (NEL) share price appreciated by 33/46% in last one/three months. We believe the run up was led by the broader market multiple (especially midcap companies getting rerated).

Our recent meeting with the management doesn't indicate of any fundamental change in the business. NEL is still largely dependent on syllabus change in Maharashtra & Gujarat market for growth.

Unless, NEL identifies new states (or product) with reasonable market size, we don't foresee the PE multiple getting further rerated. Hence, we see limited upside from current levels and investors should wait for better entry points. NEL is currently trading at 13.2x FY16E EPS. Reiterate BUY with TP of Rs 90 at 14x FY16E EPS.''

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