MT Educare : Bringing Digitization in Education

MT Educare showed surge in volume by 3.5 times of its 20 day average volume. MT Educare share price was up by 5.44%. The stock is trading near its 10 months low which Rs. 127.70 is currently trading at Rs. 134.00. MT Educare’s 20 day average volume is 84,492 shares. On 18th Aug 2016 the Company’s volume jumped 1.5 times from its average volume and stock traded in a range of Rs. 126.10 to Rs. 131.45. The delivery position was for 93,365 shares. On 11th Aug 2016 the company witnessed a volume of 1,24,494 shares out of which delivery position was for 89,368 shares and stock traded in a range of Rs. 137 to Rs. 147.95. On 5th Aug 2016 the company showed volume of 1,99,488 shares out of which delivery position was for 1,44,605 shares and stock traded in a range of Rs. 146.50 to Rs. 150.80 as showed in table below :

 

 

 

Therefore MT Educare share price support is at Rs. 126.10 and resistance is at Rs. 150.80. Today the stock has shown volume of 3,50,000 shares and price was up by 2.35Today’s delivery position will further give clarity on trend.

 

Financials

The company has registered a growth in revenue by 43.62% QoQ. The company’s operating Profit jumped by 45.52% from Rs. 5.19 crs to Rs. 7.54 crs and net profit was up by 37.57% QoQ. Operating profit margin for FY17 June quarter was 8.94% and Net profit margin was at 8.08%. The company is trading at a PE multiple of 15.24 which is low in comparison to its Industry PE multiple 29. 

 

About MT Educare

MT Educare has 150+centres, 50000+ students, and has a revenue Rs. 83 crs quarterly. Helic Investments has funding of $8 mn in MT Educare. The Company has tie-ups with 18 colleges in various districts of Karnataka and has further plans for expansion. MT Educare has made an effort to digitize content; professional recording studios have been established to record lectures of expert faculty across all streams (Std. CA, CAT, AIPMT, IIT, 5th to 12th etc.). The company has forayed into a highly evolved e-learning solution branded as ROBOMATE.

 Today MT Educare was closed at Rs.133.10, up by 4.97%. We recommend buy in MT Educare at Rs. 130 with the target of Rs. 150.