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VCK Share & Stock Broking Services Limited Kolkata : (91) (033) 4009-9999 Mumbai : (91) (022) 6632-5727
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Franchisee Centres 18
Source: Company, VCK Research
Development of integrated campus facility: The company is expected to complete the construction of integrated campus
facility at Kota by FY12 which will allow it to increase their enrollments. In order to support the expansion, company is also
increasing the number of faculty with a view to ensure adequate faculty student ratio. Further, the integrated facility would
increase the role in necessary addressing needs to students in addition to the tutoring services, which in turn will help in
tapping a wide range of the revenue flows arising out of the expenses incurred by a student during his stay at Kota.
Revenue Model
Revenue Break up
Centre Sale of
Royalty Study
3% Material
1%
Education
and
Training
96%
VCK Share & Stock Broking Services Limited Kolkata : (91) (033) 4009-9999 Mumbai : (91) (022) 6632-5727
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Relative Valuation
CPIL is primarily engaged in the business of providing tutorial services for various competitive entrance examinations
including AIEEE, IIT-JEE, AIPMT. There are many other established player in the market that have greater brand recall like
Bansal Classes, FIITJEE, Akash Institute, Resonance, Allen and Brilliant Tutorials. Since there is no listed comparable
company having a similar business model, we have chosen the companies which we believe are peers in the segment in
which the company operates:
Peer Comparison
EV/EBIDTA
Companies Market Cap FV P/E (times) P/B (times) ROE (%) OPM (%) ROCE(%)
(times)
VCK Share & Stock Broking Services Limited Kolkata : (91) (033) 4009-9999 Mumbai : (91) (022) 6632-5727
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Net Sales 29.07 38.02 45.15 61.7 Share Capital 5.07 12.07 12.07 14.4
Share Warrants & Outstandings 0.52 0 0 0
Other Income 0.9 3.01 2.7 2.1
Total Reserves 16.86 30.42 45.41 119.6
Total Income 29.97 41.03 47.85 63.8
Net Worth 22.45 42.5 57.5 134.1
Cost of Study Material Consumed 2.13 2.38 1.79 2.2 Minority Interest 0 0.15 0.14 0
Employee Cost 4.6 7.2 11.9 20.9 Secured Loans 0 0 5.2 0.1
General and Administration Unsecured Loans 2.9 0 0 0
5 7.9 9.9 14.7
Expenses
Total Debt 2.9 0 5.2 0.1
Miscellaneous Expenses 0.02 0.08 0.08 0.08
Total Liablilities 25.4 42.6 62.8 134.2
Total Expenditure 11.78 17.52 23.61 37.8 APPLICATION OF FUNDS :
EBIDTA 17.29 20.5 21.54 23.9 Gross Block 2.06 6.59 20.68 24.5
Interest 0 0.05 0.18 0.02 Less: Accumulated Depreciation 0.17 0.34 0.71 1.2
Net Block 1.89 6.25 19.97 23.2
Depreciation 0.13 0.2 0.42 0.26
Intangible Assets 3.75 3.61 7.34 17.7
Profit Before Tax 18.06 23.26 23.54 27.3
Capital Work in Progress 2.06 8.84 7.28 7.2
Provision for Tax 6.05 7.99 8.56 9.5 Total Fixed Assets 7.7 18.7 34.59 48.1
Profit After Tax 12.01 15.27 14.99 17.8 Investments 2.92 1.38 2.19 76.6
Current Assets, Loans & Advances
Inventories 0.35 0.96 1.85 1.7
Financial Ratios
Sundry Debtors 0.56 1.8 2.35 0.5
ROE(%) 53.50% 35.93% 26.07% 13.27% Net Current Assets 14.79 22.26 25.89 46.5
Deferred Tax Liability (0.1) (0.1) (0.2) (0.2)
ROCE(%) 116.90% 92.09% 83.20% 51.40% Preliminary Expenses 0.1 0.4 0.4 1.6
EBIDTAM% 59.48% 53.92% 47.71% 38.74% Total Assets 25.4 42.6 62.8 134.2
Source: Company, VCK Research
PATM% 41.31% 40.16% 33.20% 28.85%
Disclaimer - The information in this report has been obtained from sources, which VCK Research believes to be reliable, but we do not hold
Source: Company, VCK Research
ourselves responsible for its completeness in accuracy. All estimates and opinions in this report constitute our judgment as of this date and are
subject to change without notice. VCK Research will not responsible for the consequence of reliance upon our opinion or statement contained
herein or for any omission.
VCK Share and Stock Broking Services Limited Kolkata Office - Ph:(033) 40099975/77 Fax: (033) 22878479
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