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INVESTMENT THEME - CORPORATE REJUVENATION
Strong Revenue growth boosted by all round performance, higher
EBITDA margin. Increased product offerings in E-Education and stable
IT/ITES model are the key points to look out for in Firstobject’s going
forward.
Foray into e-education was not only timely and successful but also ushered
strengthened revenues from sale of pure e-education software content.
Brand ‘First e School’ is getting more visibility.
Successfully launched products from Pre-School to Tenth in CBSE and
State Boards. Also launched products in Vernacular languages for State
Board syllabi.
This year the company has undergone landmark restructuring exercise,
which is an important step in their ongoing endeavors to create a business
that is both focused and has the financial capability to become a global
player.
Post restructuring the Balance Sheet looks lean and the company’s
inorganic growth strategy of acquiring Pre-School products has not only
strengthened the fundamentals of the company but also opened a window
to a variety of value enhancing opportunities. This further will enhance its
access to global opportunities as well as investor interest, as capital
markets increasingly reward multi source players with better valuations.
E Learning foray has given an evergreen cushion to the existing IT/ ITE’s
product line. Enhanced strength, Improved Promoter holding, attractive
EPS accretion and robust growth in Return on Equity are the points to
watch out for.
While we expect earnings jump by 30-35% in FY11-12, the e-education
factor can pack in a tremendous surprise element. This surprise factor can
lift the estimated sales turnover during FY11-12 multifold times.
Remain Positive with new TP of Rs. 165.00
Inorganic growth strategy / E Learning foray and jump in top line, export
earnings and domestic markets are potential re-rating catalysts
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
INVESTMENT THEME - CORPORATE REJUVENATION
Strong Revenue growth boosted by all round performance, higher
EBITDA margin. Increased product offerings in E-Education and stable
IT/ITES model are the key points to look out for in Firstobject’s going
forward.
Foray into e-education was not only timely and successful but also ushered
strengthened revenues from sale of pure e-education software content.
Brand ‘First e School’ is getting more visibility.
Successfully launched products from Pre-School to Tenth in CBSE and
State Boards. Also launched products in Vernacular languages for State
Board syllabi.
This year the company has undergone landmark restructuring exercise,
which is an important step in their ongoing endeavors to create a business
that is both focused and has the financial capability to become a global
player.
Post restructuring the Balance Sheet looks lean and the company’s
inorganic growth strategy of acquiring Pre-School products has not only
strengthened the fundamentals of the company but also opened a window
to a variety of value enhancing opportunities. This further will enhance its
access to global opportunities as well as investor interest, as capital
markets increasingly reward multi source players with better valuations.
E Learning foray has given an evergreen cushion to the existing IT/ ITE’s
product line. Enhanced strength, Improved Promoter holding, attractive
EPS accretion and robust growth in Return on Equity are the points to
watch out for.
While we expect earnings jump by 30-35% in FY11-12, the e-education
factor can pack in a tremendous surprise element. This surprise factor can
lift the estimated sales turnover during FY11-12 multifold times.
Remain Positive with new TP of Rs. 165.00
Inorganic growth strategy / E Learning foray and jump in top line, export
earnings and domestic markets are potential re-rating catalysts
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