800 per cent multibagger returns: Heavy buying witnessed in this debt-free education services stock under Rs 100; Jumps over 15 per cent today!
From Rs 14.39 to Rs 99.25 per share, the stock gave multibagger returns of 590 per cent in 3 years and a whopping 855 per cent in 5 years.
Today, one of the Top Gainers on BSE, shares of Shanti Educational Initiatives Ltd (SEIL) gained 16.7 per cent to an intraday high of Rs 99.25 per share from its previous closing of Rs 85.05. The shares of the company saw a spurt in volume by more than 10 times on BSE. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
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.
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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 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 14.39 to Rs 99.25 per share, the stock gave multibagger returns of 590 per cent in 3 years and a whopping 855 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.
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