Buy at current level, says Vikas Sethi, MD of Sethi Finmart.
Sethi told CNBC TV18, “Educomp is India’s leading company in the integrated knowledge management, education and training space and we have seen that the education sector in India is growing exponentially and I think this company is likely to witness tremendous growth in the coming years mainly on account of the government’s thrust on education through its various schemes like Sarva Shiksha Abhiyan and if you look at the results of the March quarter, the company came out with excellent set of numbers for the March quarter with their revenues growing from Rs 273 crore to Rs 380 crore and net profits more than doubling from 67 crore to 157 crore and I expect this company to report an EPS of Rs 45 for FY12.”
He further added, “So at the current market price of around Rs 445 this stock is trading less than ten times their FY12 earnings, which is quite attractive so I would recommend a buy on the stock at current levels with a target of Rs 700 in about a year time.”
Disclosure: It would be safe to assume that I and my clients and friends would have interest in the stocks which I have discussed today.
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