A high-growth global B2B platform in education acting as a vital bridge between universities and counsellors on behalf of students, Crizac’s revenue compounded 66% over FY21-25. Demand for quality education abroad rose, with the US and UK being the top two regions in terms of source nations. More than 40% of students studying abroad are from India and China. Spending in the overseas education market is expected to reach $420bn by 2030. Tuition fees account for over 50% of total spend while ~40% is on housing, living and travel, a large ancillary opportunity. The Crizac platform is global and extensive , working with more than 173 universities across 75+ nations, with its share of global students increasing to 40% in FY25
The overseas education market remains fragmented, but Crizac’s strong domain expertise and diversified agent–student network have enabled it to capture an 11–12% share of Indian students in the UK. With recent expansion into China, Southeast Asia, and Africa, Crizac’s deep university ties, proprietary tech platform, and broadening customer base are reinforcing network effects. Despite a weak UK market and peer slowdown, Crizac grew 15% y/y in FY25, underscoring its resilience. Its ability to pivot towards regions with supportive policies enhances scalability, and we forecast a 20% revenue CAGR over FY25–28, driven by rising application volumes
Crizac’s lean, three-tiered operating model supports robust profitability, with EBITDA margins of ~25% in FY25 expected to expand to 26% over FY26–28 as scale drives productivity gains. Its fully in-house tech platform ensures efficiency and control. With agent payouts managed internally, working capital needs remain minimal (<10 days), enabling strong free cash flow generation. Cash on the balance sheet is projected to double to Rs 43/shares by FY28 from Rs23 in FY25. This is after factoring a 40% dividend payout. We believe superior unit economics are likely to continue for Crizac.
Crizac is a cash-rich, zero-debt, low capital-intensive business. Deep moats in the UK and a highly diversified student profile provide us with strong assurance regarding a 25% net earnings CAGR over FY25-28. We initiate coverage on the company with a BUY recommendation. At our target price of Rs393, it would quote at a PE of 26x Sep’27e based on the Residual Income model. At the CMP, the stock trades at attractive less than 1 PEG on FY25-27e, reasonable for a high-growth franchisee
