Name: Latest research reports of MT Educare Ltd. authored by Angel Broking and published by - Trendlyne research reports.
Item: MT Educare Ltd.
Rating: 3
Author: Angel Broking

MT Educare Ltd- Research Report

Hold: MT Educare Ltd.

Angel Broking

MT Educares results for 3QFY2016 came in-line with our estimates. The companys top-line growth was strong mainly due to firm growth in Robomate product sales as well as in the Government Projects segment. However, the core coaching business was subdued during the quarter. On the operating front, the company reported margin improvement which led to higher profitability. Strong growth in Robomate product sales and Government Projects segment boost overall consolidated top-line: For the quarter, MT Educare registered a doubledigit growth in its top-line, ie of ~25% yoy to ~Rs71cr, on back of strong growth in Robomate product sales as well as in the Government Projects segment. However, the core coaching business was subdued during the quarter. PAT grew ~34% yoy: MT Educare posted a net profit growth of ~34% yoy to ~Rs8cr, owing to strong revenue growth and higher other income. Outlook and valuation: We expect MT Educare to report a strong top-line and bottom-line growth in the coming financial years (FY2016E and FY2017E) on back of healthy growth in coaching business (school, science and commerce). This would be owing to its strong brand image and with it implementing innovative teaching technologies. Further, we expect additional revenue growth from execution...