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Updated: 04/11/2009 | 12:00 AM IST
Value buying emerges in Educomp Solutions
Capital Market
Wednesday, November 04, 2009 (New Delhi)
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Meanwhile, the BSE Sensex was up 431.11 points, or 2.80%, to 15836.05.

On BSE, 15.84 lakh shares were traded in the counter as against an average daily volume of 2.37 lakh shares in the past one quarter.

The stock hit a high of Rs 814.70 and a low of Rs 691.25 so far during the day. The stock had hit a 52-week high of Rs 1017 on 5 October 2009 and a 52-week low of Rs 266.20 on 6 February 2009.

The stock had underperformed the market over the past one month till 3 November 2009, falling 27.65% as compared to the Sensex 10.09% fall. It underperformed the market in past one quarter, correcting 12.45% as against 3.26% decline in the Sensex.

The small-cap e-learning solutions provider has an equity capital of Rs 18.98 crore. Face value per share is Rs 2.

The current price of Rs 812.15 discounts the company's Q2 September 2009 annualised EPS of Rs 21.29, by a PE multiple of 38.14.

The board of Educomp Solutions had in July 2009 raised Rs 606.69 crore through issuing 16.20 lakh shares at Rs 3,745 per share on qualified institutional placements (QIP).

Educomp Solutions had on 24 June 2009 entered into an equal joint venture with the UK-based publishing house Pearson to offer vocational education in India. As a part of the agreement, Pearson will acquire a 50% ownership stake in Educomp's existing vocational training business for $17.5 million.

The joint venture (JV) will provide Educomp access to Pearson's content on vocational education. Pearson, an international media company, with businesses in publishing, education and business information, plans to aggressively expand its footprint in the Indian market.

Educomp Solutions' shareholders had in May 2009 approved the decision to hive off its two divisions - Vocational Education and Roots to Wings and transfer them into two wholly owned subsidiaries.

Educomp Solutions' net profit rose 98.5% to Rs 50.40 on a 110.8% increase in sales to Rs 206.87 in Q2 September 2009 over Q2 September 2008.

Educomp Solutions is a technology-driven, e-learning solutions provider specializing in creation, management and delivery of learning content.

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