846 per cent multibagger returns: Turnaround story in this debt-free education services stock under Rs 100; PAT jumps over 480 per cent!
From Rs 13.42 to Rs 94.58 per share, the stock gave multibagger returns of 605 per cent in 3 years and a whopping 846 per cent in 5 years.
On Monday, one of the Top Gainers on BSE, shares of Shanti Educational Initiatives Ltd (SEIL) gained 4.81 per cent to Rs 94.58 from its previous closing of Rs 90.24.
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 net sales increased by 239 per cent to Rs 9.83 crore in Q1FY25 compared to Rs 2.90 crore in Q4FY24. The company reported a turnaround story with an operating profit of Rs 3.94 crore and a net profit of Rs 3.09 crore in Q1FY25 compared to an operating loss of Rs 2.41 crore and a net loss of Rs 1.09 crore in Q4FY24, an increase of 263 per cent and 384 per cent, respectively. In its annual results, net sales increased by 73.3 per cent to Rs 19.05 crore and net profit increased by 8.3 per cent to Rs 3.65 crore in FY24 compared to FY23.
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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 0.02, which means its debt is just a fraction of its equity. This is further emphasized by the low debt figure of just Rs 1.57 crore. Additionally, the company has a healthy market cap of over Rs 1,500 crore and working capital requirements have reduced from 70.8 days to 51.0 days
From Rs 13.42 to Rs 94.58 per share, the stock gave multibagger returns of 605 per cent in 3 years and a whopping 846 per cent in 5 years. Investors should keep an eye on this Small-Cap debt-free stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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