Khambatta Securities' research report on MT Educare
MT Educare (MT) is one of India's largest academic coaching services provider, specialising in coaching students for secondary school, higher secondary science, and entrance exams for UG engineering and medical courses. MT is a strong player in school and higher secondary science coaching in Maharashtra. It also has a good presence in Karnataka where it manages pre-university colleges in partnership with Aryan Foundation. MT's key strengths include 3 decades' experience, top-ranking students, and strong brands. The company's strategy to collaborate with local partners in new markets and exploring different models to expand should enable it to accelerate growth going forward. The company's government projects vertical is expected to contribute higher revenues, given its experience in coaching and training, and the government's focus on skill development and increasing enrolment of students from backward classes in tertiary education.
Outlook
The MT stock is currently trading at 13.6x and 8.8x FY20E and FY21E EPS, respectively. Valuing MT at 18x FY21E EPS, we arrive at a price target of Rs 137 with a potential upside of 105% and informing a BUY rating.
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Read More First Published on Mar 28, 2019 03:33 pm
