800 per cent multibagger returns: Debt-free education services stock under Rs 110 – Board announces audited financial results year ended March 31, 2024

From Rs 15.80 to Rs 96.40 per share, the stock gave multibagger returns of over 500 per cent in 3 years and a whopping 800 per cent in 5 years.

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.

According to Quarterly Results, the company reported a total income of Rs 402.05 lakh and a net loss of Rs 108.83 lakh in Q4FY24 compared to a total income of Rs 318.94 lakh and a net profit of Rs 16.88 lakh in Q3FY24. In its annual results, the total income increased by 44.35 per cent to Rs 2,282.91 lakh in FY24 compared to Rs 1,581.51 lakh in FY23. The company reported a net profit of Rs 365 lakh in FY24 compared to a net profit of Rs 336.62 lakh in FY23, an increase of 8.43 per cent.

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.

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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 over Rs 1,500 crore. The company's stock price has also been performing well with a compound annual growth rate (CAGR) of 60 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 15.80 to Rs 96.40 per share, the stock gave multibagger returns of over 500 per cent in 3 years and a whopping 800 per cent in 5 years.

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