Training institutes that prepare you for engineering and other assorted entrance tests have been around in India and its nook and corner ever because it became trendy for Indian parents to preserve up with the Joneses even on the education front. Amidst this, Profession Point witnessed dream listing on the Bombay Stock Exchange. In fact, even much better than a dream listing: it rose 104% on the first day of its listing, which means it far more than doubled on the 1st day. Furthermore, the initial day saw 15 million shares becoming exchanged, creating it a single of the most active stocks on the BSE.
Rajasthan-primarily based Profession Point gives tutorial solutions for various entrance examinations, such as the hugely competitive engineering and healthcare exams for admission into Indias premier colleges.
But is this justified? The experts are wary of this improvement. This indicates that if you purchase the stock at this moment, it is horrendously costly and you are acquiring a high threat proposition.
The experts at Mansukh, which offers online share trading solutions and online equity trading solutions, warned to be careful about purchasing the stock. Organizations like Career Point and Firstobject Technologies Ltd enjoy a lot of attention due to an e-education buzz,, but there was definitely some profit-taking danger with the stock.
How did this happen in a supposedly rational industry? Could this be simply because of some added liquidity in the market place that day? Or could it be because of a boom in on the web equity trading solutions in the recent years? Possibilities are this is simply because of the buzz about e-education business right now.
One particular reason e-education businesses are at this stage nowadays is since of the hunger of an Indian student to educate himself/herself better if only for encashing greater opportunities in the job industry.
For instance, globe leaders in satellite communication, Hughes Education, have began their India operations in delivering education via satellite channels in genuine time. They have joined hands with massive ticket institutes like IIMs, MICA and IITs amongst others to provide Executive MBAs so that folks can function and study MBAs simultaneously.
It is in this environment that Career Point got listed. But it is not even an education institute in the classic sense. It is a tutorial service. Tutorial services business is also localised. For them to go pan-India, it will take some time to establish leadership.
For the present, Profession Point has indicated that it intends to utilise the proceeds (Rs. 115 Crore) to meet charges of building and improvement of an integrated campus facility and to develop classroom infrastructure.
1 reason that Profession Point is poised for profitability is that it has a franchise-based organization model, which will not demand considerable money to be invested upfront, specialists at Mansukh indicated.