500 per cent multibagger returns: Can this FIIs-backed education services stock reach an all-time high? Details inside

From Rs 15.50 to Rs 93.99 per share, the stock gave multibagger returns of over 500 per cent in 3 years and a whopping 850 per cent in 5 years.

Today, the stock market was trading in green with the BSE Sensex Index and NSE Nifty-50 Index hitting an all-time high at a level of 75,582.28 and 23,004.05, respectively. Along with the market in green, one of the gainers on BSE, shares of Shanti Educational Initiatives Ltd gained 5 per cent to Rs 93.99 per share from its previous closing of Rs 89.51. The shares of the company saw a spurt in volume by more than 1.10 times.  The stock is down by 16.4 from its all-time high of Rs 109.40 per share and gained over 80 per cent from its 52-week low is Rs 52.01 per share.

Shanti Educational Initiatives Ltd (SEIL), a venture of the Chiripal Group based in Ahmedabad, India, offers a wide range of educational services. They operate several K-12 schools under the Shanti Asiatic Schools brand, currently educating over 25,000 students across multiple cities in India.

SEIL also runs a large network of preschools under the Shanti Juniors banner, with over 300 locations in 74+ cities. In 2013, they launched Shanti's Hopskotch Preschool, a premium preschool chain catering to parents who desire a high-quality education, a clean environment, and a global learning approach for their children. SEIL goes beyond running its institutions and provides consultancy services for K-12 and preschools, including assistance with affiliation procedures, school infrastructure design, project planning and execution, academic support, and marketing initiatives.

The company is likely to experience a strong financial upswing in FY24. For the first nine months, they've achieved significant growth in net sales (Rs 16.15 crore compared to Rs 10.99 crore for all of FY23), operating profit (Rs 3.95 crore compared to Rs 0.41 crore), and net profit (Rs 4.74 crore compared to Rs 3.37 crore). This impressive performance across all financial metrics suggests the company is well-positioned for a strong finish to the fiscal year, with continued profitability and earnings growth on the horizon.

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Shanti Educational Initiatives Limited is holding a meeting of its Board of Directors on Thursday, May 30, 2024. The primary agenda item is to review and approve the company's audited financial results for the quarter and year ended March 31, 2024, along with the auditor's report. The board may also address other business matters as permitted by the chairperson.

In February 2024, The Board of Directors of Shanti Educational Initiatives Ltd approved the sale of its entire stake in its subsidiary, Shanti Leaning Foundation, to unrelated parties. The subsidiary generated no revenue or income in the last financial year and has negligible net worth. While agreements for the sale are expected to be signed on the same date, the actual completion of the sale may happen by February 27, 2024, or on a mutually agreed-upon date. The sale consideration is Rs 1,00,000.

The company is in a very strong financial position with minimal debt, indicated by its debt-to-equity ratio of only 0.03, which means its debt is just a fraction of its equity. This is further emphasized by the low debt figure of just Rs 1.87 crore. Additionally, the company has a healthy market cap of Rs 1,472 crore. The company's stock price has also been performing well with a compound annual growth rate (CAGR) of 80 per cent over the past 3 years.

As of March 2024, Foreign Institutional Investors (FIIs) hold a 19.01 per cent stake in the company. From Rs 15.50 to Rs 93.99 per share, the stock gave multibagger returns of over 500 per cent in 3 years and a whopping 850 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.