VALUE PICK OCTOBER ’17: CAREER POINT LIMITED

Company Background –

History:

Career Point Infosystems Limited was incorporated as a public limited company on March 31, 2000. The company was incorporated to impart quality education to students preparing for various competitive examinations.

Business:

• Career Point Infosystems Limited is a provider of tutorial services in India. The company provides tutorial services to high school and post high school students for various competitive entrance examinations including (1) All India Engineering Entrance Examination, (2) Indian Institute of Technology – Joint Entrance Examination and (3) All India Pre-Medical and Pre-Dental Test. The tutorial services are provided through our classroom training programmes conducted through a network of Company Operated and Franchisee Centres.
• The company also offers distance learning programme comprising of correspondence and test series courses which have been systematically designed to provide effective and efficient education to students in a simple and lucid manner. They have two subsidiaries namely (1) Career Point Edutech Limited and (2) Career Point Infra Limited.
• The company operates in two core business areas namely (1) Tutorial services and (2) ECAMS. The various course offerings under the tutorial segment for competitive entrance examinations include IIT JEE, AIEEE, SLEEE, AIPMT, NTSE, KVPY and Science Olympiad. Their network of training centers consists of Company Operated Training Centres and Franchisee Centres.

Activities: 2002 to 2017

• During the financial year 2002, the promoters started undertaking tutoring services via Franchisee Centres as a part of their expansion plans. Subsequently, from April 1, 2006, they also started providing tutoring services through Company Operated Training Centres. In November 2006, the company incorporated Career Point Edutech Ltd with the object of developing technology based educational solution and software.
• In the year 2007, the company launched synchro-school programme. In December 6, 2006, they incorporated Career Point Infra Ltd with the object to acquire land and developing such land for maintaining of schools and educational institutions. In the year 2008, they launched Career Point Knowledge Lab in Kota. Also, they executed management cooperation agreement with Singhania University for establishing university off campus.
• In the year 2009, the company executed management services agreement with the Gopi Bai Foundation Trust Kota (Raj.) for providing management services to Global Public School. In the year 2010, the company executed MoU with Hughes Communications India Ltd. Also, they executed MOU with Gopi Bai Foundation Trust Kota (Raj.) for providing Education Consultancy and Management Services for the proposed University at Alania, Kota, Rajasthan.
• As at July 31, 2010, the company had 17 Company Operated Training Centres and 16 Franchisee Centres. They have a team of 231 faculty members as on July 31, 2010 (excluding faculty members of franchisees) comprising of graduates in engineering and science.
• In the year June 2017, the company is evaluating acquisition of majority shareholding in Mumbai based ed-tech company Plancess Edusolutions and to execute the proposed transaction, the company has entered into a confidential and exclusive memorandum of understanding (MoU) with Plancess Edusolutions.

Company Promoters:

The promoter of the company Pramod Maheshwari has been in the business of tutoring for competitive entrance examinations since 1993, and the business was being administered under proprietorship firms of Pramod Maheshwari, Om Prakash Maheshwari, and Nawal Kishore Maheshwari.

Listed On:

The company’s shares are listed for trading on National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) in India.

Stock Information:

Share Holding Pattern:

Career Point – Financials

Conclusion –

Considering the techno-funda analysis and sector outlook; Career Point Limited looks good at Rs 142. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also).

Previous ValuePick – KNR CONSTRUCTIONS LIMITED

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