Khambatta Securities has come out with its report on Keerti Knowledge and Skills . The research firm has recommended to “Subscribe ” the IPO in its research report as on July 24, 2017.
Incorporated as “Keerti Software & Hardware Infotech Private Limited” on 29th April, 1999, Mumbai, Maharashtra, the name of the company was subsequently, on 8th February, 2017, changed to Keerti Knowledge and Skills Private Limited. It then became a public limited company in March 2017 as “Keerti Knowledge and Skills Limited (KKS)”.Objective of the Issue
1. To expand company-owned and company-operated (COCO) centres
through its wholly-owned subsidiaries, Keerti Institute India Private
Limited (KIIP) and Keerti Tutorials India Private Limited (KTIP);
2. To develop e-applications and e-programs;
3. Developing end-to-end software/ portal for recruitment, training
4. General corporate purposes.
Revenue is expected to grow at a good pace while profitability is expected to be around 35% in FY 2018. With the government’s thrust on digital India, there is huge scope in this field, which augers well for KKS.
At the IPO price of Rs 52, the stock is available at P/E of only 11.7x (FY17e
EPS), quite cheap compared to the average industry P/E of 49x. Considering the IPO is in the SME segment and the discount to its peers on the main board, the stock still is priced low. Considering the high growth prospects and expanding profitability, we believe the forward multiple would be cheaper at the present rate and offers an investment opportunity at the current level. Hence, we recommend that you subscribe to the issue.
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