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 
Hi Arun,
Good to read your views on NIIT & Lloyd,you should blog often,already bout skm at 20 & accumulating.any new recommendations.
Thank you Sachin.. Wish I had more time to blog..
Am hoping to come out with a recommendation on EIL (Engineers India Ltd). Great company with excellent future potential and nearly Rs 1800 Crs of cash on the balance sheet plus Return on Capital Employed upwards of 40%. EIL is going to be a lot bigger in the next few years. Their engineering consulting business leaves them with lots of free cash flows and more importantly, they are technically very good at what they do. You will find it hard to get an Indian company that is so strong technically in power plants, refineries, pipelines etc. It is a PSU, but with a new govt at the centre (that is trying to revamp PSU`s by changing independent directors and devolve stake), EIL is a great bet.
You can also check out Transformers and Rectifiers India Ltd. Have bought a bunch at Rs 200. If you can wait for a couple of years then there is going to be a transmission & distribution boom in India. We have enough generation capacity but not the auxiliary infrastructure needed to support it. TRIL is perfectly poised to profit from this boom. They are big into 765 kVA transformers, have already gotten orders for 765 kVA from power grid and have state of the art facilities in Gujarat. Plus, at a market cap of Rs 280 Crs, they are a near net-net (working capital>market cap). Low debt of Rs 100 Crs and a brand name that is slowly breaking into the elite group of 765 kVA manufacturers (BHEL, Crompton, ABB, Voltamp etc are some of the others), TRIL right now is very cheap. It came out with an IPO 4 years back for Rs 450 and currently trades at a more than 100% discount to IPO valuations. I am amazed that the market has not realized the potential of this company!
thanks for reply,will certainly look into investing in EIL,& TRIL..more towards EIL as Dividend payout is good.
NIIT is no more a mere IT training co—it’s more of a Learning Solutions Outsourcing provider to corporates globally. Domestic IT training now contributes only around 25+% of topline.
Margin accretive & highly scalable Corporate Learning KPO biz—MTS in particular—accounts for nearly 50% of topline and growing, in sales mix. Also growth in MTS very consistent over 4 years. I Like that refurbished long-term, annuity kinda KPO model (earlier it was short-term out-done model).
School biz: is now consciously scaling down or winding up with capital intensive govt school biz & growing with private schools, on an asset light, almost investments free – subscription led model.
It’s latest cloud based multicast delivery model in NIIT centers throughout the country ensures uniform quality & bringing down costs dramatically in this high fixed cost biz. As capacity utilisations improve, power of operating leverage will aid margins here.
ILS & SBS segments could benefit from Digital India & Skill India drive of NaMo Govt, with the help of its brand strength. Also non-IT products gaining good traction.
Top Indian brand—established globally in training space. Strong and clean B/S. Professional and ethical Mgmt. Its 24% holding in NIIT Tech offers great cushion.
At @ 750 crs mcap, obviously a great value. But nothing imminent & ONLY FOR LONG TERM.
Mee too having good exposure to NIIT. IN the middle of writing a note. my Facebook page is Singaraju Ram… or please keep in touch via mail. Thank you!
Hello Raju
We will keep in touch
Hi Arun ji
Stumbled on your blog today.Fascinating research.but nothing since January 15.is this a case of all good things come to an end?.
If not then where can we reach you?.
Regards
Pankaj
SEBI research analyst regulations made me stop writing