This stock rose 7% today after it reported Q1 results Tuesday evening. The stock enjoys some of the highest volumes in the industry, which is supported by increasing volumes over the week and approaching the monthly average. The momentum is reinforced by string technicals in terms of moving averages and other technical oscillators. It has returned, over a 3-year period 549% to the investors; that would mean if you invested Rs. 1 lakh 3 years ago it would now be worth around Rs. ~6.5 lakh.
The stock you should be watching right now is Shanti Educational Initiatives Ltd (“Shanti”). Shanti has 20% upper circuit set at Rs. 80.3 and is the market cap runner up by a thin margin and currently stands at Rs. ~1143 crore. The company has strong financials indicated by a Piotroski score of 8. The company has good prospects in the industry given its positioning, low volatility – Beta 0.73, and low industry competition coupled with an improving financial track record.
Q1 FY24 results – The company reported a 66.1% YoY increase in Revenues from Rs. 4.6 crore to Rs. 7.6 crore; 75.4% YoY increase in Net Income from Rs.1.3 crore to Rs. 2.3 crore; 71.2% YoY growth in EBITDA from Rs. 1.9 crore to Rs. 3.3 crore; EPS showed great progress from 0.01 to 0.14 YoY. Over 3 year period the company reports a 270% CAGR Net Income.
In terms of shareholding, Shanti has stable promoter holdings at 64.5%, FIIs – 18.62% (+20 bps Q1 FY24), the rest being public float. Some of the big shark holdings include – Abdula Investment Fund – 5.22%, New Leaina Investments Limited – 4.94%, Lts Investment Fund – 2.93%.
Shanti Educational Initiatives Limited provides educational services in India. It operates a chain of PreK and K-12 schools. The company also operates a shanti business school and provides various services comprising establishing, running, and managing education projects.
Written by Sandeep R
