Views on MT Educare 2QFY2016 Results: Angel Broking

Views of Mr. Amarjeet Maurya (Sr. Research Analyst - Mid Caps, Angel Broking) on MT Educare 2QFY2016 Results:

"MT Educare's 2QFY2016 results outperformed our estimates on all parameters. Its consolidated top-line grew by a healthy ~26% YoY to ~INR 83cr (our estimate was of INR 78.6cr), mainly due to strong growth in Robomate product sales as well as Government Projects segment. However, core coaching business was subdued during the quarter. The company reported a consolidated operating profit of ~INR 22cr, up 19% YoY. The operating margin contracted by 163bp YoY to 27.0%, primarily on account of higher other costs. The consolidated reported net profit grew by ~21% YoY to ~INR 14cr (our estimate was of INR 12.1cr), due to strong top-line growth.

Going forward, we expect MT Educare to report strong top-line and bottom-line growth in the coming financial years (FY2016E and FY2017E) on back of healthy growth in the coaching business. We expect additional revenue growth from execution of government projects, Robomate product, and tie up with Shri Gayatri Educational Society (SGES) in Hyderabad. Currently, we have a BUY rating on the stock."

Shares of MT EDUCARE LTD. was last trading in BSE at Rs.134.2 as compared to the previous close of Rs. 136.6. The total number of shares traded during the day was 6779 in over 178 trades.

The stock hit an intraday high of Rs. 138 and intraday low of 132.6. The net turnover during the day was Rs. 915691.

Source : Equity Bulls

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