This post on CL Educate IPO tries to bring out consolidated brokerage views opinions, IPO Review / Analysis, Note/ reports and recommendation of brokerages , Analyst, Business New papers, Management views, information on Anchor investors, Subscription etc on CL Educate IPO and shall be updated continuously till the closure of the issue The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to CL Educate IPO.
1) CL Educate IPO: Peer Analysis
2) CL Educate IPO Review
CL Educate IPO : Subscription
|Subscription: CL Educate IPO ( x times)|
CL Educate IPO : Anchor Investors
CL Educate Ltd raised Rs 71.68 crore through sale of shares via anchor allotment ahead of its three-day initial public offering. (IPO). The company allotted nearly 1.43 million shares to nine institutional investors at Rs 502 per share. The investors that acquired the shares include DSP Blackrock India, Singapore-based Flowering Tree Investment Management through its arm Ashoka Pte Ltd, and Sanjoy Bhattacharyya’s Ocean Dial Gateway to India (Mauritius),HDFC Trustee Co, Sundaram Mutual Fund, Principal Trustee Co, Canara HSBC Oriental Bank of Commerce Life Insurance Co, HDFC Standard Life Insurance Co, ICICI Lombard General Insurance Co.
Consolidated Views of Brokerages, Analysts, Business New Paper Reports, Management Views on CL Educate IPO.
- Angel Broking: “In terms of valuations, the pre-issue P/E works out to 23.2x its annualised 1HFY2017 earnings (at the upper end of the issue price band), which is higher compared to its peers, (MT Educare is trading at 8.9x its annualised 1HFY2017 earnings). Also, CL Educate (CLEL) EV/sales multiple at 2.1x, works out to be at premium to MT Educare’s 1.2x. On EV/EBITDA front too, CLEL’s issue appears to be unattractive 15.1x v/s. MT Educare’s 5.4x. Moreover, as compared to its peers the margins and ROE profile of CLEL does not appear to be attractive. The company’s business is working capital intensive which coupled with expensive valuations may not provide a significant upside to the investor. Hence, we recommend neutral rating on the CL Educate IPO issue. “
- ICICI Securities: recommends investors to avoid the issue as the current valuation offers limited upside. “It is one of the leading players in the education provider space. However, it is available at 27 times FY17 estimated earnings per share (EPS) on an annualised basis. Recently, it has witnessed slightly higher debtor days.
- SMC Research: has given it 2.5 star rating out of 5. The research firm rates two stars as a neutral rating.
- Dalal Street Investment Journal: “On the financial front, the company’s revenues have shown positive growth of 14 per cent CAGR over FY13-16. However, its EBITDA margins have declined by 200 bps in FY16, as well as PAT levels have decreased 35 per cent as compared to FY15. However, in the last six months, the company has successfully increased its operational efficiency by decreasing overall costs by around 7-8 per cent. Its net worth has also increased which is good sign for the company. We expect that company will continue to improve its operational efficiency, which will positively impact EBITDA and PAT margins. We expect increase in net worth in the next few years as well, which will result in increased ROE.”
- SP Tulsiyan: “The issue is weak on fundamentals – working capital intensive business, mid-single digit margins, single digit RoE coupled with expensive valuations and education sector being a non-performer (empirically) make CL Educate IPO an avoid.
Standard disclaimer: I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.