Wednesday, 22 March 2017

CAREER POINT - CL Educate IPO - Peer re-rating?


INTERESTING STOCK TO WATCH:

CAREER POINT 
MCAP: 200 Odd Crores.
CMP: Around 111/-
CURRENT P/E: Around 13.90.

NEGATIVE: Revenue Growth missing.
POSITIVE: Sectoral bullishness, Debt Free, Cheap Valuations, Technically ripe for a move

Career Point is an education company.
They provide coaching and education services right from Pre-School to Ph.D.

Education has been out of theme off late but with the IPO of CL EDUCATE there can be some action in the sector.

CL Educate owner of the brand Career Launcher is out with an IPO that is priced at a P/E of 86 against FY15 nos and at a P/E of 100+ against the FY16 nos. 

In such a scenario, Career Point even though small in size is at throwaway valuations compared to the over-valuation of Career Launcher (CLEDUCATE).

Even another peer MT Educare is trading at a P/E of 28.

Career Point has had good stable financial performance, however there has been no turnover growth yet but that's expected to kick in soon as per the Annual Report. Career Point also has a NBFC subsidiary named Sarjan Finance.



Technically stock has witnessed a huge correction, right from 700s in 2010 the stock has only crashed having given temporary rallies. I think with a short-term, mid-term horizon in mind this can be a good stock with CL Educate IPO triggering a re-rating of sorts. SL of 98 should be good.



Note: The above is not a research report but information as available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i might have CAREER POINT in my portfolio and hence my point of view can be biased. Readers should consult their financial advisory before any investments.



5 comments:

  1. Sir, what's your view on IFB Agro for the short and long term?

    ReplyDelete
  2. Sir what target of career point and iam hold arrow tex last 1 year at 52 rs advise

    ReplyDelete
  3. Don't you think Global Education ltd. has better future? The valuations are very very attractive.

    ReplyDelete
  4. Dear Sir,

    Thanks for this Amazing Post..I have gain some really good growth in my portfolio following your advice & strategies in your blogs. Please keep writing regularly.

    Also, please let us know your thoughts on S Chand IPO.

    Thanks

    Ashish Ranjan

    ReplyDelete