Chittorgarh logo
Contact Us   Facebook   Go
IPO
  • IPO Dashboard
  • Current IPO List
  • IPO Calendar
  • Performance Tracker
  • Grey Mkt Premiums
  • Recommendations
  • IPO Ratings
  • IPO Reviews
  • Basis of Allotment
  • IPO Alerts
  • IPO Prospectus Docs
  • IPO Reports
  • IPO News
  • IPO FAQs
  •    Answer IPO FAQs
  • IPO Alert Blog
  • Stock Gadgets
  • Discussion Forums
  • IPO Message Board
  • Stock Message Board
  • Bonds / FDs
  • Current IPO's
    More IPO's...
    Subscribe with us...
     Free Email Alerts
     Name
     Email 

     Free SMS Alerts
    India Stock Market
  • Stock Message Board
  • Stock Market Home
  • NSE Bulk Deals
  • NSE Circuit Filters
  • Corporate
         Announcements
  • Market Holidays
  • Stock Trading Brokers
  • Online Trading
  • Comparison Table
  • ICICI Direct
  • Sharekhan
  • Indiabulls
  • 5Paisa
  • Motilal Oswal
  • HDFC Securities
  • Reliance Money
  • IDBI Capital
  • Religare
  • Geojit
  • Commodity Brokers
  • Angel Commodities
  • Indiabulls Commodity
  • Unicon Commodities
  • SMC Comtrade Ltd
  • IPO Registrars
  • Intime Spectrum
  • Karvy
  • More IPO Managers..
  • MT Educare IPO Review by Dilip Davda

      

     

    Dilip Davda says 'Avoid' to MT Educare Limited IPO

    Date Posted: Mar 22, 2012

    IPO Review List   |    IPO Detail

    Issue Summary

    Off late we are seeing some surprised announcements for IPOs. If we recall, in the month of November 2011, we suddenly saw around 9 IPOs hitting the market in the month of October 2011 to mobilize funds in a hurried way.  After which there was a lull in primary market till we saw MCX IPO opening in the Month of February 2012. Well market expected the close of fiscal 2011-12 with the IPO of NBCC, but suddenly we have seen the announcement of MT Educare IPO opening on 27.03.2012. Details of this IPO are as under:

    MT Educare is the rechristened "avtar" of Mahesh Tutorials that started its coaching classes business in 1984 and then went full-fledged in tutorials, education related field by 1988. The company provides coaching services to students in the secondary, higher secondary school and pursuing graduation degree in commerce, preparing for various competitive examinations and undertaking chartered accountancy examinations. Ever since then, it expanded its wings in four states i.e. Maharashtra, Gujarat, Karnataka and Tamil Nadu and is currently spreaded at 110 locations with 188 centres having 1400 faculty and staff and has serviced over 58300 students in the year 2010-11.

    Mahesh Tutorials offers coaching for Std. IX & X - State Board, ICSE and CBSE Boards, Science coaching for Std. XI, XII, Engineering & Medical Entrance Test - CET, Commerce coaching for Std. XI till TYBCom, along with entrance test preps for CA - CPT, CS , CWA, and for professional CA (IPCC & Final) exams. MT Educare has also diversified into Pre-School and Day Care services through 'Global Champs'.

    Now it mulls expansion of its Karnataka operations and constructing a PUC Campus and establishing new coaching centres at 20 locations.  To part finance this it is mobilizing Rs. 35 crore via fresh issue of equity (approx 4375000 shares) and is also providing exit option to existing PE Helix Investment Company which is selling 80 lakh shares . The company is offering equity share of Rs. 10 each within a price band of Rs. 74-80. The issue opens on 27.03.12 and closes on 29.03.12. Post issue, shares will be listed on BSE and NSE. Enam Securiteis Pvt. Ltd. Is the sole BRLM for the issue and Link Intime India Pvt. Ltd. Is the registrar to the issue. CRISIL has assigned IPO Grade 4 to this issue indicating at above average fundamentals of the company. Minimum application is to be made for 80 shares and in multiples thereof thereafter.

    As far as BRLM's performance in concerned, it has disclosed details on 10 mandates from 13.10.10 to 08.09.11 out of which 3 IPOs failed to give returns on debut day.


    Company Financials

    On company's front, it has earned net profit of Rs. 8.25 crore on a total income of Rs. 107.35 crore for 2010-11 and net profit of Rs. 9.75 crore on a total income of Rs. 72.29 crore for first six months of the current fiscal. This translates into annualized EPS of Rs. 5 on enhanced equity. Thus on the higher price band the asking price is at around 16 P/E and at a P/BV of about 5, which appears to be greedy one. The company has utilized free reserves while giving two liberal bonuses in the ratio of 5 for 1 (in 2009) and in the ratio of 32 for 1 (in 2010), thus new investors will have to wait for getting appreciation.


    Conclusion / Investment Strategy

    High Risk-Low Return - only risks aver investors can park modest fund for long term.


    IPO Review Author

    About Dilip Davda

    Dilip Davda, a freelance journalist for more than 25 years, is a stock market analyst and news article writer. Since 1985, he has contributed to print media, electronic media and often appears on TV channels as visiting stock analyst. His articles are regularly publishes in Corporate India, Smart Investment (English and Gujarati weekly published from Ahmedabad), Free Press Journal and many other news papers & magazines. He is also a visiting stock analyst on DD News TV Channel.

    Email: dilip_davda@rediffmail.com

     

    More MT Educare Limited IPO Views / Analysis ...

    1. KM Global Finserv Pvt. Ltd.