NSEI:CAREERP

Stock Analysis Report

Executive Summary

Career Point Limited, an education company, provides education consultancy, management, tutorial, and residential hostel services in India.

Rewards

PE ratio (8.3x) is below the Indian market (13.8x)

Earnings grew by 9.4% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Siddharth Education Services

BSE:540736

Share Price & News

How has Career Point's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAREERP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

CAREERP

2.1%

IN Consumer Services

-0.6%

IN Market


1 Year Return

62.7%

CAREERP

-33.1%

IN Consumer Services

7.1%

IN Market

Return vs Industry: CAREERP exceeded the Indian Consumer Services industry which returned -35.3% over the past year.

Return vs Market: CAREERP exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

CAREERPIndustryMarket
7 Day-0.3%2.1%-0.6%
30 Day11.2%9.1%1.6%
90 Day13.1%-2.5%5.1%
1 Year66.6%62.7%-32.7%-33.1%9.1%7.1%
3 Year3.1%0.7%-49.0%-49.6%31.1%24.2%
5 Year-26.1%-27.9%-34.8%-36.5%33.8%21.8%

Price Volatility Vs. Market

How volatile is Career Point's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Career Point undervalued compared to its fair value and its price relative to the market?

8.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAREERP (₹119.35) is trading above our estimate of fair value (₹26.56)

Significantly Below Fair Value: CAREERP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAREERP is good value based on its PE Ratio (8.3x) compared to the Consumer Services industry average (30.6x).

PE vs Market: CAREERP is good value based on its PE Ratio (8.3x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CAREERP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CAREERP is good value based on its PB Ratio (0.5x) compared to the IN Consumer Services industry average (0.7x).


Next Steps

Future Growth

How is Career Point forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.0%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Career Point has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Career Point performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAREERP has high quality earnings.

Growing Profit Margin: CAREERP's current net profit margins (25.5%) are higher than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: CAREERP's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: CAREERP's earnings growth over the past year (9.4%) is below its 5-year average (25.1% per year).

Earnings vs Industry: CAREERP earnings growth over the past year (9.4%) exceeded the Consumer Services industry -3.2%.


Return on Equity

High ROE: CAREERP's Return on Equity (5.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Career Point's financial position?


Financial Position Analysis

Short Term Liabilities: CAREERP's short term assets (₹2.6B) exceed its short term liabilities (₹681.7M).

Long Term Liabilities: CAREERP's short term assets (₹2.6B) exceed its long term liabilities (₹370.0M).


Debt to Equity History and Analysis

Debt Level: CAREERP's debt to equity ratio (16.6%) is considered satisfactory.

Reducing Debt: CAREERP's debt to equity ratio has increased from 13.6% to 16.6% over the past 5 years.

Debt Coverage: CAREERP's debt is well covered by operating cash flow (24.9%).

Interest Coverage: CAREERP's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

Inventory Level: CAREERP has a high level of physical assets or inventory.

Debt Coverage by Assets: CAREERP's debt is covered by short term assets (assets are 3.5x debt).


Next Steps

Dividend

What is Career Point's current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%0.6%markettop25%2.3%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CAREERP's dividend (1.68%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: CAREERP's dividend (1.68%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: CAREERP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CAREERP has only been paying a dividend for 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Career Point's salary, the management and board of directors tenure and is there insider trading?

10.6yrs

Average board tenure


CEO

Pramod Maheshwari (48yo)

0yrs

Tenure

₹3,300,000

Compensation

Mr. Pramod Maheshwari, B.Tech., serves as the Managing Director of Career Point Institute of Skill Development Pvt. Ltd. Mr. Maheshwari founded Career Point Limited in 1993 and serves as its Chairman, Mana ...


CEO Compensation Analysis

Compensation vs Market: Pramod's total compensation ($USD46.57K) is about average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Pramod's compensation has been consistent with company performance over the past year.


Board Age and Tenure

10.6yrs

Average Tenure

48yo

Average Age

Experienced Board: CAREERP's board of directors are seasoned and experienced ( 10.6 years average tenure).


Insider Trading

Insider Buying: CAREERP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,425,66401 Jan 20
Pramod Maheshwari
EntityIndividual
Role
Chief Executive Officer
Founder
Shares13,301
Max Price₹107.18
Buy₹1,521,62529 Jun 19
Pramod Maheshwari
EntityIndividual
Role
Chief Executive Officer
Founder
Shares22,000
Max Price₹69.16
Buy₹2,265,38128 Jun 19
Pramod Maheshwari
EntityIndividual
Role
Chief Executive Officer
Founder
Shares33,239
Max Price₹68.15
Buy₹812,70327 Jun 19
Pramod Maheshwari
EntityIndividual
Role
Chief Executive Officer
Founder
Shares11,970
Max Price₹67.89
Buy₹1,609,25326 Jun 19
Pramod Maheshwari
EntityIndividual
Role
Chief Executive Officer
Founder
Shares24,084
Max Price₹66.87
Buy₹1,657,03819 Jun 19
Pramod Maheshwari
EntityIndividual
Role
Chief Executive Officer
Founder
Shares25,266
Max Price₹65.62
Buy₹956,47912 Jun 19
Pramod Maheshwari
EntityIndividual
Role
Chief Executive Officer
Founder
Shares14,274
Max Price₹67.11

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Om Maheshwari (51yo)

    Executive Director & CFO

    • Tenure: 19.8yrs
    • Compensation: ₹3.30m
  • Nawal Maheshwari (44yo)

    Executive Director

    • Tenure: 19.8yrs
    • Compensation: ₹3.30m
  • Shailendra Maheshwari (47yo)

    Senior Vice President of Academics

    • Compensation: ₹600.00k
  • Pramod Maheshwari (48yo)

    Founder

    • Compensation: ₹3.30m
  • Mithilesh Dixit (57yo)

    Senior Vice President of School & Vocational Education

    • Compensation: ₹1.42m
  • Sanjay Gupta (46yo)

    Regional Head

    • Tenure: 17.8yrs
    • Compensation: ₹854.93k
  • Ajeet Singh (39yo)

    Regional Head of Central

    • Compensation: ₹866.64k
  • Ankesh Jain (40yo)

    General Manager of Marketing

    • Compensation: ₹530.01k
  • Tarun Jain (47yo)

    Chief Investor Relations Officer

    • Compensation: ₹901.20k
  • Manish Gupta

    Head of Administration


    Board Members

    • Om Maheshwari (51yo)

      Executive Director & CFO

      • Tenure: 19.8yrs
      • Compensation: ₹3.30m
    • Nawal Maheshwari (44yo)

      Executive Director

      • Tenure: 19.8yrs
      • Compensation: ₹3.30m
    • Pramod Maheshwari (48yo)

      Founder

      • Compensation: ₹3.30m
    • Pawan Lalpuria (52yo)

      Independent Non-Executive Director

      • Tenure: 12.2yrs
      • Compensation: ₹20.00k
    • Ram Chaudhary (77yo)

      Independent Non-Executive Director

      • Tenure: 12.2yrs
      • Compensation: ₹20.00k
    • Mahesh Gupta (42yo)

      Independent Non-Executive Director

      • Tenure: 7.9yrs
      • Compensation: ₹20.00k
    • Neelima Maheshwari (48yo)

      Non-Executive Non-Independent Director

      • Tenure: 5.4yrs
      • Compensation: ₹10.00k
    • Vishal Jain (46yo)

      Independent Non-Executive Director

      • Tenure: 9yrs
      • Compensation: ₹10.00k
    • Jagdish Sarda (60yo)

      Independent Non-Executive Director

      • Tenure: 3.2yrs
      • Compensation: ₹10.00k

    Company Information

    Career Point Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Career Point Limited
    • Ticker: CAREERP
    • Exchange: NSEI
    • Founded: 1993
    • Industry: Education Services
    • Sector: Consumer Services
    • Market Cap: ₹2.160b
    • Shares outstanding: 18.16m
    • Website: https://www.cpil.in

    Number of Employees


    Location

    • Career Point Limited
    • CP Tower
    • Road No. 1, IPIA
    • Kota
    • Rajasthan
    • 324005
    • India

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CAREERPNSEI (National Stock Exchange of India)YesEquity SharesININROct 2010
    533260BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2010

    Biography

    Career Point Limited, an education company, provides education consultancy, management, tutorial, and residential hostel services in India. It offers tutorial services to students for school curriculum and various competitive examinations in the areas of engineering and medical entrance, NTSE, KVPY, and Science Olympiad. The company provides its tutorial services through various delivery platforms, such as owned branches, franchisee training centers, technology enabled live classrooms, online courses, synchro-school programs, and distance learning solutions. It also offers education consultancy and management services for the administration of schools; infrastructural services to higher education institutions, including technical campuses and universities; and online platforms and technology based learning solutions. In addition, the company operates Career Point Gurukul, a residential coaching and school campus; Career Point University, a higher education institution; Career Point World School, a day school and hostel; Global Public School; and Global Kids, a pre-school and K12. The company was formerly known as Career Point Infosystems Limited and changed its name to Career Point Limited in September 2011. Career Point Limited was founded in 1993 and is based in Kota, India. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 12:55
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.