Career Point can give 25% return: Tulsian

Career Point Infosystems can give 25% return, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "Career Point is a company providing the tutorial services in engineering and medical students. They have strong presence in Kota and Kota is the Mecca of all the IIT aspirants and the engineering and medical aspirants. This company has made its name; they are seen as number two or three Kota. The company is sitting on a cash of about Rs 60-70 crore. The entire amount remains with the company, so company thought of moving into the allied services and they are setting up a campus in the Kota of about 8.5 lakh square feet, which will be used by the company for giving it to the students for staying and all other services. The cost of that is about Rs 60-70 crore, so the entire amount will be met from the internal accruals." He further added, "The education sector has been doing well and the company is expecting - when we talk to the management they are expecting a CAGR of 30% plus on topline as well as on bottomline though they are more optimistic on the bottomline to know grow maybe 35-40%, so in fact that's the attraction in the stock, which we see that if a company can post the growth of 30% over next four-five years. I think this is a quite excellent growth expected from the company and if you see the share price having move to about Rs 650-700 post listing and now it is ruling close to about Rs 400 or maybe from current levels the stock has capacity to give a return of about 25% in 2011."