Heavy Buying Alert: Education services stock soars over 10 per cent; Company likely to report strong earnings; details inside!

The stock gave multibagger returns of 467 per cent in 3 years and a whopping 760 per cent in 5 years.

Today, the stock market was trading in red with the BSE Sensex Index down by 0.15 per cent and the NSE Nifty-50 Index down by 0.18 per cent. Though the market was in red, one of the Top Gainers on BSE, shares of Shanti Educational Initiatives Ltd gained 12.4 per cent to Rs 85 per share from its previous closing of Rs 73.86.

The stock’s 52-week high of Rs 109.40 per share and 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.

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The company is poised to deliver strong earnings in FY24. During the first nine months of FY24, it reported impressive financial results with net sales of Rs 16.15 crore, an operating profit of Rs 3.95 crore, and a net profit of Rs 4.74 crore. This marks a significant improvement compared to its annual results for FY23, where it recorded net sales of Rs 10.99 crore, an operating profit of Rs 0.41 crore, and a net profit of Rs 3.37 crore. The substantial growth in both sales and profitability highlights the company's robust performance and positive trajectory for the current fiscal year.

Earlier, in February 2024, The Board of Directors of Shanti Educational Initiatives Ltd on February 27, 2024, 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 has a market cap of over Rs 1,200 crore with a 3-year stock price CAGR of 70 per cent. The stock gave multibagger returns of 467 per cent in 3 years and a whopping 760 per cent in 5 years.

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