The Career Point investment thesis is playing out well. The stock hit a new high of Rs. 422 today, taking its current market cap to about 763 Crs. Even though the stock is up about 70% in the last two months, the demerger leading to two focussed entities should create more vale going forward. Besides, if the Co. can do profits of about 58 crs as mentioned in the investment thesis above, it will be still available at about 13 times its trailing earnings.
The NCLT date for demerger is due on May 17th. It’s just a matter of time & should go through in the next few months. It will be very interesting to see how the markets value a focussed profit making, asset light education entity with decent financials in terms of return ratios & a lean balance sheet.
Subscribe To Our Free Newsletter |