My Application Form Status

Check the status of your application form with Angel Broking.
  • Companies
  • Everything else
Search

MT Educare Ltd Research Report - 08th Feb 2016

Education | Published on Feb 06th 2016

IT

MT Educare’s results for 3QFY2016 came in-line with our estimates. The company’s top-line growth was strong mainly due to firm growth in Robomate product sales as well as in the Government Projects segment. However, the core coaching business was subdued during the quarter. On the operating front, the company reported margin improvement which led to higher profitability. Strong growth in Robomate product sales and Government Projects segment boost overall consolidated top-line: For the quarter, MT Educare registered a doubledigit growth in its top-line, ie of ~25% yoy to ~Rs71cr, on back of strong growth in Robomate product sales as well as in the Government Projects segment. However, the core coaching business was subdued during the quarter. PAT grew ~34% yoy: MT Educare posted a net profit growth of ~34% yoy to ~Rs8cr, owing to strong revenue growth and higher other income. Outlook and valuation: We expect MT Educare to report a strong top-line and bottom-line growth in the coming financial years (FY2016E and FY2017E) on back of healthy growth in coaching business (school, science and commerce). This would be owing to its strong brand image and with it implementing innovative teaching technologies. Further, we expect additional revenue growth from execution of government projects, Robomate product, and tie up with Shri Gayatri Educational Society (SGES) in Hyderabad which has a model similar to preuniversity (PU) colleges. However, we believe that currently all positives are already factors in stock prices. Thus, we recommend a Neutral rating on the stock.

Download Full Report

Accumulate

CMP 160
Target Price
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)500.95
MCAP NSE (Rs in Cr)498.56
P/E (x)15.63
EPS (Rs.)8.05
BV (Rs.)41.05
Div Yield (%)1.59
FV (Rs.)10.00
P/BV (x)2.99
EV/Sales (x)1.69
EV/EBITDA (x)9.15

Shareholding Pattern (%)

Promoter43.0
Public & Others28.0
Foreign22.0
Corporate6.0
Institution1.0
Grand Total100.0

Trade Securely

AngelEye

Portfolio Tracking & Trading Application View Demo