Career Point Infosystems Ltd - Review

[chetan]

Anand Rathi has the following recommendation on the IPO of Career Point Infosystems

Looking at the expansion plans, past financial performance and expected growth for the future of the company we recommend Long term Subscribe.

[sunil]

HSBC Analyst Hitesh Punjabi has the following recommendation,

With the increasing population and rising per-capita income, India is likely to emerge as one of the largest market for educational services in the world. The increasing level of competition for admission to professional colleges is likely to propel the demand for coaching institutes in the coming years. The Number of students appearing for AIEEE exam and IIT-JEE exam has increased at CAGR of 19.4% for FY05-09 and CAGR of 9.5% for FY06-FY10, indicating the scope of growth for the company.

CPIL is the first company from tutorial education field, tapping the capital market, from Kota, with descent financial performance and strong industry prospects is looking an good investment to bet upon. At the price band of Rs 295-Rs 310, the stock is valued at 22.4x-23.5x its FY10 earnings of Rs 13.71, We recommend our investor to Subscribe to the issue with long term view.

[sunil]

Aditya Birla Money has the following recommendation on the IPO,

The company maintained a healthy CAGR (FY07-FY12) revenue growth of over 28% and a decent EBITDA growth of 11.1% over the same period. On pre-issue capital at the higher price band of `310, the company trades at 25x FY10 EPS of `12.34, which is bit on the expensive side as compared to its listed peers in the educational space (refer Table-1). On the post-issue capital at the higher band, the company is priced at 31.6x FY10 EPS of `9.7-9.8. However, the company is not strictly comparable to its peers in the educational space. Considering the increasing demand for competitive exam coaching, Career Point’s strong brand image, well-experienced management and faculty team, new integrated facility & initiatives and diversification into formal education, we believe that Career Point is a good investment bet over a long horizon and also offers possibility of upside for short-to-medium investors. We, thus, recommend subscribe to Career Point Infosystems’ IPO.

[sunil]

Uncion's Nikhil Pasari has the following recommendation,

At the upper price band of INR 310, CPL is priced at 21.1x its FY10 annualised EPS of INR 14.71 on a post issue basis. Considering the niche segment and growth prospects, the stock looks fairly priced, in comon with its peers, and hence we recommend SUBSCRIBE to the issue for long term investment gains.

[sunil]

Way2Wealth's Nisha Harcheka has the following Views,

At the lower and upper end of the price band, the issue quotes at P/E  of 30.4x and 31.6x its FY10 earnings of Rs 9.7-9.8. Though not a like-tolike comon, listed companies the education sector namely Everonn Education, Educomp Solution and NIIT are trading at a P/E in the range of 16-20x. However, since Career Point Infosystems will be the first company from the tutorial education field tapping the capital market; the premium is justified. Considering the strong industry prospects and decent financials, one can Subscribe to the issue from a longer term perspective.

[sunil]

Edelweiss' Recommendation on the IPO,

At the upper band of INR 310 the issue is priced at a P/E of 25x FY10, EPS of INR 12.3. With its strong brand name, moving beyond classroom coaching, management services, and entering into education infrastructure, added with improved capacity, we recommend SUBSCRIBE at the upper band.

[sunil]

Angel Broking has the following View on the IPO,

CPIL posted a 28% revenue CAGR over FY2007–10, with EBITDA and PAT registering CAGRs of 11% and 14%, respectively. Going forward, although setting up of the campus facility will not aid CPIL’s profitability in the near term, we believe CPIL will continue its growth momentum because of higher enrollment, as witnessed in the first four months of FY2011. At the higher end of the price band (Rs310/share), the stock’s implied P/E would be ~25.1x FY2010 EPS. We recommend Subscribe on the IPO, for moderate listing gains.