Buy CORE Education; target Rs 335: Firstcall Research

"CORE Education & Technologies provides exhaustive range of products and solutions spanning across all stages of education - K12, higher education and vocational training courses. During the quarter ended, the robust growth of Net sales is increased by 61.89% to Rs. 4818.90 million. CORE Education & Technologies Ltd has recommended dividend for Rs. 0.60 per Equity Share of Rs. 2/- each for 2011-2012. CORE has bagged contract from Gujarat Govt. to implement Computer Aided Learning (CAL) in 3236 Primary Schools for Rs. 124 crores. Net Sales and PAT of the company are expected to grow at a CAGR of 27% and 27% over 2011 to 2014E respectively."

"The company has reported net profit of Rs 729.29 million for the quarter ended on March 31, 2012 as against Rs. 702.77million in the same quarter last year, an increase of 12.74%. It has reported net sales of Rs 4818.90 million for the quarter ended on March 31, 2012 as against Rs.2976.62 million in the same quarter last year, a rise of 61.89%. Total income grew by 69.81% to Rs. 5098.58 million from Rs. 3002.54 million in the same quarter last year. During the quarter, it reported earnings of Rs 7.04 a share."

"At the current market price of Rs.298.00, the stock is trading at 8.56 x FY13E and 7.32 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.34.81 and Rs.40.71 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 27% and 27% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 4.31 x for FY13E and 3.75 x for FY14E. Price to Book Value of the stock is expected to be at 1.54 x and 1.27 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 335 for Medium to Long term investment," says Firstcall Research report.

FIIs holding more than 30% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.