Stay invested in Educomp Solution: Mukadam

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Stay invested in Educomp Solution: Mukadam

Stay invested in Educomp Solution, says Shahina Mukadam, Director of Varun Capital Markets.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by Shahina Mukadam See what other Experts & Brokerages are saying about Educomp Sol See messages about Educomp Sol Educomp Sol BSE | NSE 10/02/12 Are Mutual Funds betting on Educomp Sol?

Stay invested in Educomp Solution , says Shahina Mukadam , Director of Varun Capital Markets.

Mukadam told CNBC-TV18, "It is better to stay put in Educomp Solution. This is extremely expensive valuation wise, even if they do profits of about Rs 210 or Rs 220 crore for the year, its still available at a multiple of over 50 times, but at the same time the growth itself in profits is about 50-60% per annum. If they are able to sustain this growth for 3-5 years, then definitely even though the prices are expensive it still makes sense to remain invested. We are taking a play on the domestic consumer, the young population that we have, so to an extent it makes sense to stay invested especially if you see the QIP investment that was done a couple of months back, which was done around at the price of about Rs 700, they raised about Rs 606 crore, so it makes sense and institutional investors have found value at those levels and there is tremendous amount of interest at those levels. So I think one should stay invested."