Tree House Education & Accessories Ltd. share price target

Background: Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated pre-school operator in India. It currently operates 720 pre-schools (611 are self operated) in 103 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools. THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 56% of its pre-schools. The Pre-schools in other regions are as follows, North (16.5%), South (12.3%) and East (15.1%). THEAL's K-12...

We have stopped covering Tree House Education from November 30, 2015.

Existing investors could hold and add while new investors could buy at CMP Rs.293 Rs 200

Background: Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated pre-school operator in India. It currently operates 720 pre-schools (611 are self operated) in 103 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools. THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 56% of its pre-schools. The Pre-schools in other regions are as follows, North (16.5%), South (12.3%) and East (15.1%). THEAL's K-12...

Tree House Education & Accessories (THEAL) 2QFY2016 results underperformed our estimates on all parameters. The top-line growth was decent mainly due to strong addition of 73 new pre-schools. On the operating profit front, the company reported flattish growth yoy which resulted into lower growth in profitability. Top-line grew ~15% yoy: The companys top-line grew ~15% yoy to ~Rs57cr, mainly due to growth in existing pre-schools and addition of new pre-schools. The company added 73 pre-schools in various cities like Ahmednagar, Goa, Gurgaon, Jalgaon, Noida, and Ratnagiri, during the quarter. Poor operating performance drags down Net profit growth: The operating profit came in at ~Rs30cr, up ~2% yoy. However, operating margins contracted by 700bp yoy to 52.7%, as the company opened 73 new centres during the quarter, which is the highest ever in the history of the company in a single quarter. The reported net profit grew by only ~1% yoy to ~Rs13cr, due to the poor operating performance. Outlook and Valuation: We continue to remain positive on the stock, as we believe THEAL will continue to register robust growth going ahead. The growth would come on the back of consistent expansion of pre-schools and repayment of debt which would boost...

Tree House Education & Accessories Ltd (THEAL) is India's one of the largestpre-school operator, with strong position in Tier-I cities. THEAL has a dominantposition in Maharashtra with 257 pre-schools, which is 40% of its total 612pre-schools. In FY16E, the company is planning to open 150 pre-schools out ofwhich 100 pre-schools will be opened in Delhi & National Capital Region (NCR) & Tier-I cities which will strengthen its position in the pre-school industry. Remaining 50 pre-schools will be opened in Tier II & III cities.

Background: Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated pre-school operator in India. It currently operates 647 pre-schools (540 are self operated) in 97 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools. THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 56% of its pre-schools. The Pre-schools in other regions are as follows, North (16.5%), South (12.3%) and East (15.1%). THEAL's K-12 presence is...

Background: Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated pre-school operator in India. It currently operates 612 pre-schools (505 are self operated) in 88 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools. THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 56% of its pre-schools. The Pre-schools in other regions are as follows, North (16.5%), South (12.3%) and East (15.1%). THEAL's K-12 presence is...

Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated pre- school operator in India. It currently operates 538 pre-schools (435 are self operated) in 75 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools. THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 64% of its pre-schools. The Pre-schools in other regions are as follows, North (6%), South (11%) and East (19%)....

Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated preschool operator in India. It currently operates 490 pre-schools (386 are self operated) in 63 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools. THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 64% of its pre-schools. The Pre-schools in other regions are as follows, North (6%), South (11%) and East (19%)....

Background: Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated pre-school operator in India. It currently operates 490 pre-schools (386 are self operated) in 63 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools. THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 64% of its pre-schools. The Pre-schools in other regions are as follows, North (6%), South (11%) and East (19%). THEAL's K-12 presence is restricted...

Background: Tree House Education & Accessories Ltd (THEAL) is India's largest branded self-operated pre-school provider and the only listed self operated pre-school operator in India. It currently operates 444 pre-schools (340 are self operated) in 57 cities. In 2009, THEAL has done a forward integration to provide management services to K-12 schools . THEAL currently provides management services to 24 K-12 schools in 3 states. Geographically, THEAL's pre-schools are skewed towards Western India wherein it operates 64% of its pre-schools. The Pre-schools in other regions are as follows, North (6%), South (11%) and East (19%). THEAL's K-12 presence is restricted...