This is one of the stock to buy where you invest in it only for long term and see the value being created over the years. Buy stock of this company only if you have patience to wait for a few years (not days and months).
Everonn Education is a Chennai-based Education and training company incorporated in year 1987. Creation of knowledge resources, designing and delivering learning and training programmes and setting up infrastructure for these services are the areas company caters to. It has presence across the country in all states and operates 9,897 learning centers and offers services to over 3 million students. Everonn education operates in two segments namely instructional and Computing Technology (ICT) and Virtual Technology Enabled Learning Solutions (ViTELS).ViTELS contributes over 60% of the company's total revenue and ICT forms 22% and rest of the revenues come from the business through it's subsidiaries – EDURES and Toppers.
Growth Outlook
The company has a scalable and replaceable technology platform to impart training to create educational entrepreneurs – EDUPRENEUR. This initiative is to expand its reach at the district level in entire country. Everonn already has signed up seven such deals and expects to end FY2012 with 100 districts integrated within its reach. As part of the initiative called Educating India, Everonn will act as a facilitator, aggregator and the manager of the schools and colleges. These projects can be co-owned by retail investors by investing in as low as Rs.5 lakhs. It expects to end FY12 with the setting up of 50 schools and colleges in all.
The company is constantly investing in its subsidiaries, including Everonn Skill Development and Everonn Business Education. While the former is likely to break even by this quarter, the latter is expected to start generating revenues within next three quarters.
Stock Financials
Everonn has witnessed decent financial growth over the quarters. During the 12 months ended in December 2010, the company's revenue and net profit grew by over 75% each.
Profitability is seen to be improving. During the December 2010 quarter, operating margin stands at 38.1%. The company has invested Rs.40 crores towards its two new subsidiaries. Both these businesses are likely to break even in coming quarters.
Stock Valuation
At the current stock price of Rs.567.4, this mid cap stock trades at 17.9 times its earnings (P/E) for the trailing 12 months. Although Price to book value at 4.16 looks higher in valuations, company's future growth looks promising being in education sector. With government's emphasize on better education and sector is being looked as sunrise sector, one my buy stocks of Everonn for long term value creation. It is not a stock to buy for short and mid term but strictly for long term investors.
Everonn Education is a Chennai-based Education and training company incorporated in year 1987. Creation of knowledge resources, designing and delivering learning and training programmes and setting up infrastructure for these services are the areas company caters to. It has presence across the country in all states and operates 9,897 learning centers and offers services to over 3 million students. Everonn education operates in two segments namely instructional and Computing Technology (ICT) and Virtual Technology Enabled Learning Solutions (ViTELS).ViTELS contributes over 60% of the company's total revenue and ICT forms 22% and rest of the revenues come from the business through it's subsidiaries – EDURES and Toppers.
Growth Outlook
The company has a scalable and replaceable technology platform to impart training to create educational entrepreneurs – EDUPRENEUR. This initiative is to expand its reach at the district level in entire country. Everonn already has signed up seven such deals and expects to end FY2012 with 100 districts integrated within its reach. As part of the initiative called Educating India, Everonn will act as a facilitator, aggregator and the manager of the schools and colleges. These projects can be co-owned by retail investors by investing in as low as Rs.5 lakhs. It expects to end FY12 with the setting up of 50 schools and colleges in all.
The company is constantly investing in its subsidiaries, including Everonn Skill Development and Everonn Business Education. While the former is likely to break even by this quarter, the latter is expected to start generating revenues within next three quarters.
Stock Financials
Everonn has witnessed decent financial growth over the quarters. During the 12 months ended in December 2010, the company's revenue and net profit grew by over 75% each.
Profitability is seen to be improving. During the December 2010 quarter, operating margin stands at 38.1%. The company has invested Rs.40 crores towards its two new subsidiaries. Both these businesses are likely to break even in coming quarters.
Stock Valuation
At the current stock price of Rs.567.4, this mid cap stock trades at 17.9 times its earnings (P/E) for the trailing 12 months. Although Price to book value at 4.16 looks higher in valuations, company's future growth looks promising being in education sector. With government's emphasize on better education and sector is being looked as sunrise sector, one my buy stocks of Everonn for long term value creation. It is not a stock to buy for short and mid term but strictly for long term investors.
