Scripscan:Career Point Infosystems Ltd
Code:533260
Cmp:330
Story:Career point offers test preparatory coaching to high school and post-high school students for various competitive examinations. It has 17 owned branches and 16 franchise centres spread over 12 states across North, East and Central India.It has chalked out plans to build schools, universities, technical campuses and vocational training institutes in northern and western parts of the country.The company had raised Rs.77.49 crore via the IPO with the objective of establishing an integrated campus spread across 8.6 lakh square feet in Kota; expand its campus and office at Kota and also go in for strategic acquisitions. Not much progress seems to have been done on either front, with just Rs.15.28 crore funds deployed till date. Its university at Himachal is expected to be operational by FY13 and its Rajasthan unit is expected to go stream by July 2012. It is also setting up two technical campuses, again one in Rajasthan and one in Punjab.This relatively newly listed company has done well for FY11, with a 27% rise in topline at Rs.79 crore. Net profit was up 38% at Rs.27 crore.The business remains lucrative thanks to the many entrance exams, and limited seats in premier institutes such as the IITs, NITs and AIIMS. Matrix Partners' stake buy in FIIT JEE by investing Rs 100 crore reinforces this point.In fact, there have been several other deals by private equity players with coaching institutes providing training for post-graduate entrance exams.A strong enrolled student base, a business that may be sustainable given India's competitive entrance-exams' dynamics and the ability to innovate with the latest audio-visual technologies in its pedagogy, are key positives for the company.Besides, a strong presence in Kota, the hub for ITT JEE coaching, and a near debt-free balance-sheet are added attractions.The stock got listed on 6th Oct 2010, at Rs.461 against the IPO price of Rs.310.It continues to remain above the IPO price, a rare feat in today’s time.Q1 is usually its best season with admissions happening.This expectation can take the stock to higher levels in the next one month.Remains a good long term buy.
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