Business models of Career Point still to be found out: Anand Tandon, Brics Securities

Anand Tandon, Director & Head Equities, Brics Securities, in a chat with ET Now talks about Career Point.

Do you think Career Point with such a listing is actually justifying the valuations?

Companies like Career Point will suffer from one major business disadvantage which is that there is a final kind of cap on how much you can grow in terms of your own business. Franchising becomes a lot difficult because in the space of education, if things are not fluid, each teacher is a business in himself. Therefore, trying to create a franchised business becomes extremely difficult.

So the question is how much can you grow on your own and at some stage, valuations will tend to catch up. So it is a great opportunity as far as the business space goes but business models still have to be found out, which can take advantage of that business opportunity.