NIIT has shot up by 2 times since the time of this website`s recommendation (from Rs 26 to Rs 50).
At Rs 800 Crs market cap, NIIT is still a great buy. NIIT Technologies (in which NIIT has a 24% stake) has a market cap of Rs 2200 Crs (at a P/E of 12 x, even NIIT Tech looks cheap but this matter is beyond the scope of the current article). Just this stake comes to a value of Rs 570 Crs valuing NIIT`s core education business at a meager Rs 230 Crs.
There is a reason when I say that NIIT is the Mcdonalds of the Education Business. A great brand, excellent retail distribution network, responsible promoters and a clear vision for the future makes this company an excellent long term investment.
The company has barely eked out a profit in the last quarter.
http://www.moneycontrol.com/news/results/niit-turns-profitableq1-net-at-rs-60-lakh_1134947.html
The company`s earnings are bound to improve in a few quarters. At Rs 50, NIIT trades at a Price to Book value of 2 times (book value of Rs 25). Irrespective, this company remains a BUY. A link to my previous NIIT recommendation is given below and it continues to remain a BUY.
thepokaranmoneymanager 