Core Education, NIIT, Everonn stocks rally up to 24% in single day

MUMBAI: Shares of education service providers such as Core Education, NIIT, Everonn Education, MT Educare and Aptech have rallied up to 24% on Monday on the back of attractive valuations after languishing during the mid and small-cap crash between January and March this year.

Fundamentally, if investors are looking at some value buying in beaten-down stocks, then one can look at the education sector,” said AK Prabhakar, senior vicepresident, equity research at AnandRathi Financial Services. Core Education gained the most in this sector on Monday, about 23.9%, ending the day at Rs63.75. Other education companies such as Everonn surged 8.6% to close at 60.15, while MT Educare rose 7.2 % to end the day at Rs86.25.

“The current market size of the Indian education sector is around $60 billion, and is growing at the rate of 15% to 16% CAGR (compounded annual growth rate). The size of the school segment is about $44-45 billion and the market for higher education is $11 billion.

Companies like Educomp, NIIT and Core Education are some of the players who are cashing in on this opportunity,” said Enayet Kabir, associate director at Technopak, a consulting firm. “Investors have taken new positions in beaten-down education stocks.

Fundamentally, the education sector is looking very promising with huge investment opportunities,” said Arun Kejriwal, CEO, at KRIS Research.