>> Monday, February 23, 2009
Whats hot these days ???
Dont know? It is the education sector. Thousands of B- Schools and Engineering Colleges are comming up in India.
This can directly and indirectly benefit Educomp.
Scrip - Educomp Solutions Ltd.
CMP - 1771.85 Rs.
Target - 2325 ( In 6 months )
Educomp Solutions Limited (Educomp) is a provider of technology-based education products and services for kindergarten to twelfth grade (K-12) education. The Company’s principal business areas include Business-to-Business (B2B) initiatives and Direct Initiatives. Educomp provides technology enabled products and services to both public and private schools, including Smart Class, instructional and computing technology solutions (ICT solutions) and teacher training programmes (Professional Development). The Company sells educational aid, compact disk-read only memory (CD-ROM) and learning content through its online initiatives (including Mathguru and Learning Hour) and its offering initiatives (including establishing pre-schools, K-12 schools and higher education institutions). In May 2008, the Company acquired a 51% stake in Learning.com.
In October 2008, the Company acquired a 51% stake in Takshila Management Services Pvt. Ltd.
Recent Happenings -
Educomp Solutions has won orders from the State Governments of Uttar Pradesh (UP) and Assam for a total of 2,042 schools and the total size of these orders stands at Rs120 crore.
With these wins, Educomp has achieved its target of 12,000 schools in its ICT Business (government schools).
Educomp will supply computer hardware, software and connected accessories and provide computer-aided education in the specified schools and intermediate colleges from Classes VI to XII. The company will also provide one full-time instructor, supply courseware, impart training and provide electricity and internet connections at each school.
Key Drivers -
The retail segment, a tutorial service led by the math Web site mathguru.com is growing at over 600 per cent, and from insignificant contribution a couple of years ago now contributes 11 per cent of its revenues. The business enjoys a 70 per cent margin and would contribute to higher margins as it adds users.
Educomp Saw a 61.36 per cent jump in net profit at Rs 31.83 crore for the third quarter ended December 31, 2008
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