CORE Projects & Technologies Ltd. is a leading provider of Solutions in the Education Domain worldwide. Apart from education domain, it also provides services for the ERP, Logistics & consulting. CORE is a CMMi Level3 and ISO 9001:2000 certified Company.
CORE’s offerings in the education domain include products and solutions in the areas of School Management Systems, Assessment Systems, Accountability Systems and IT Infrastructure Systems.
CORE’s education customer base is spread across the USA, UK, Africa, Sri Lanka, Bahamas, Caribbean and India. CORE has been awarded a prestigious contract with the State Government of Jharkhand under the “Education for All” program (Sarva Shikhsa Abhiyan) and is looking at strengthening its foothold in India backed by its International experience.
In the Logistics domain, CORE is focused on providing RFID and GPS based tracking solutions, asset management and smartcard based solutions. The focus industries areretail, manufacturing, logistics, and healthcare.
In the ERP domain, CORE caters to Fortune 500 customers. Its offerings in this space include onsite & offshore solutions, development & production support and project staffing.
It seems CORE has defied the economic slowdown and has come out with excellent results for FY 08-09 wherein the sales grew by 72% at Rs. 345.60 Cr (Rs. 199.97Cr) YOY whereas Net profit grew by 61% at Rs. 70.95 Cr (Rs. 44.28 Cr).
The equity of the company is around Rs. 17 Cr having no. of outstanding shares at 8,55,78,463. The Promoter Holding is around 47.69%. The company has Book Value of Rs 38; Free Reserves per share is Rs. 36.70 (as on Mar-08). Core has issued bonuses in Jun-05 (12:1) & Aug-06 (2:1). The Reserves of the company are Rs. 305.34 Cr.
The main interest for the stock is generated due to the major sops that might be given to this industry under the aegis of UPA Government's Poll Agenda "Education For All" that will provide skilled workforce for the growing economy. As per the estimates, there will be huge crunch of skilled labours going forward which could affect the overall economic growth. So to meet the demand of skilled labours, UPA government is going to act swiftly to bring out new policies & create favourable environment for this sector.
As an integral part of the coordinated action plan for skill development, the government created “National Skill Development Corporation” in July 2008 with an initial corpus of Rs. 1000 Cr to stimulate & coordinate private sector participation in skill development. There are expectations of increase in allocation for education spending in this budget as well.
It seems CORE has defied the economic slowdown and has come out with excellent results for FY 08-09 wherein the sales grew by 72% at Rs. 345.60 Cr (Rs. 199.97Cr) YOY whereas Net profit grew by 61% at Rs. 70.95 Cr (Rs. 44.28 Cr).
The equity of the company is around Rs. 17 Cr having no. of outstanding shares at 8,55,78,463. The Promoter Holding is around 47.69%. The company has Book Value of Rs 38; Free Reserves per share is Rs. 36.70 (as on Mar-08). Core has issued bonuses in Jun-05 (12:1) & Aug-06 (2:1). The Reserves of the company are Rs. 305.34 Cr.
The main interest for the stock is generated due to the major sops that might be given to this industry under the aegis of UPA Government's Poll Agenda "Education For All" that will provide skilled workforce for the growing economy. As per the estimates, there will be huge crunch of skilled labours going forward which could affect the overall economic growth. So to meet the demand of skilled labours, UPA government is going to act swiftly to bring out new policies & create favourable environment for this sector.
As an integral part of the coordinated action plan for skill development, the government created “National Skill Development Corporation” in July 2008 with an initial corpus of Rs. 1000 Cr to stimulate & coordinate private sector participation in skill development. There are expectations of increase in allocation for education spending in this budget as well.
Many schools & institutes have started online courses & provide course material in the form of VCDs & even provide facility of e-tutoring / online tutoring. Even the concept of townships have given an opportunity to real estate developers to bring in private companies having expertise to run the school built in the township on partnership basis or giving them on lease. So this industry off lately is seeing major changes happening & the benefits will definitely percolate down to private companies, as government can’t reach out to the population in very remote areas.
Also Government may give infrastructure status to schools & institutes & allow education trusts to raise money through IPOs for their expansion plans. Apart from that, government will give licenses to the private institutes to operate full fledged, which in turn may bring many foreign institutes to set up their business here. These factors will rerate the entire industry. Being one of the earliest entrants in this sector, & having sound footing, CORE will definitely be benefited.
If you go by standards, in USA, the companies operating in this sector often trade at very high PE, at around 50-60. Whereas CORE is available at PE of around 15 (at CMP 130) & the market leader Educomp is quoting around PE of 49.
Also CORE, on February 27, 2008, has approved the issue of 4,50,000 warrants to "TGS Investment & Trade Pvt Ltd" the Private Equity Arm of the A V Birla Group on preferential basis at an issue price of Rs 305/- to be exercised / exchangeable with 4,50,000 Equity Shares of Rs 2/- each at a premium of Rs 303/- per share. So entry of A V Birla, oozes confidence in the company.
CORE has been awarded a prestigious contract to implement FAIM (A unique software system that manages ANY type of assessment process), its Admissions and Examinations Management System, by the Karnataka State Open University (KSOU) in Sep-08.
Looking at all these factors, we can safely arrive at conclusion that the education sector will be one of the leading sectors in the new bull market to come. The investments made in this sector might give you handsome returns.
As CORE is one of the leading companies in this sector & having sound fundamentals & strong management focus, I would recommend accumulating this stock with long term view of around 3-5 years to get manifold returns.
Also Government may give infrastructure status to schools & institutes & allow education trusts to raise money through IPOs for their expansion plans. Apart from that, government will give licenses to the private institutes to operate full fledged, which in turn may bring many foreign institutes to set up their business here. These factors will rerate the entire industry. Being one of the earliest entrants in this sector, & having sound footing, CORE will definitely be benefited.
If you go by standards, in USA, the companies operating in this sector often trade at very high PE, at around 50-60. Whereas CORE is available at PE of around 15 (at CMP 130) & the market leader Educomp is quoting around PE of 49.
Also CORE, on February 27, 2008, has approved the issue of 4,50,000 warrants to "TGS Investment & Trade Pvt Ltd" the Private Equity Arm of the A V Birla Group on preferential basis at an issue price of Rs 305/- to be exercised / exchangeable with 4,50,000 Equity Shares of Rs 2/- each at a premium of Rs 303/- per share. So entry of A V Birla, oozes confidence in the company.
CORE has been awarded a prestigious contract to implement FAIM (A unique software system that manages ANY type of assessment process), its Admissions and Examinations Management System, by the Karnataka State Open University (KSOU) in Sep-08.
Looking at all these factors, we can safely arrive at conclusion that the education sector will be one of the leading sectors in the new bull market to come. The investments made in this sector might give you handsome returns.
As CORE is one of the leading companies in this sector & having sound fundamentals & strong management focus, I would recommend accumulating this stock with long term view of around 3-5 years to get manifold returns.
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