Buy Edserv Softsystems: Rajesh Agarwal

Buy Edserv Softsystems, says Rajesh Agarwal of Eastern Financers.

Agarwal told CNBC-TV18, "One can buy Edserv Softsystems with a stop loss of Rs 108 and a target of Rs 125. This is a Chennai based company basically into education support services. It started in 2004 and it has around 40 training centre. They have recently tied up with a CA training club with 6 lakh students to impart web based training. CA coaching is a 2000 crore market and gaining a market share in that area would be a big achievement for Edserv."
 
He further added, "With the kind of initiative the government is taking towards education, I think this sector is going to perform very well in the next 2 quarters as well 2-3 years also and Edserv being a prominent player is going to benefit. Even on a valuation front, it is trading at a 1.5 times price to book and a 6 times PE FY12 which we think is cheap." Click HERE to know the rules and follow the score card