– Multibagger Stock Analysis 2023
In this article, we can Aptech Ltd as a Potential Multibagger Stock as on September 2023.
Aptech Ltd
Aptech Ltd. is a pioneer in the non-formal education and training business in the country with a significant global presence.It has a presence in diverse sectors ranging from IT training, media & entertainment, retail & aviation, beauty & wellness, banking & finance, and the pre-school segment amongst others. Dr. Anuj Kacker is the current whole-time director and Interim CEO. Mr Vijay Aggarwal is the current Non-Executive Chairman.
Cost-Saving
The Company has planned for a reduction of ~ 20% in its fixed cost base in FY20-21 to mitigate the financial impact of the pandemic.
Partnerships
Aptech Limited (for its brands – Arena Animation & Maya Academy of Advanced Cinematics) inks a strategic partnership with the Vancouver Centre for Entertainment Arts at Langara College, Vancouver.
International Retail (21% of Retail Revenue)
Three key markets within the top 5 international markets showed encouraging income growth. The total number of new center sign-ups went up from 3 in the previous fiscal to 9. The income recognized against such sign-up fees went up by 168%.
Website
Location
Aptech Ltd. is a pioneer in the non-formal education and training business headquartered in Mumbai. they have branches in Bengaluru, Kolkata, and Pune.
Leaders
Dr. Anuj Kacker is Currently President and Executive Director of Aptech Ltd., a leader in career education and training with learning centers in over 35 countries. Demonstrated track record in diverse companies including multinationals, large Indian corporations as well and start-ups. Experience in managing various business and channel formats as well as diverse customer groups.
Mr Vijay Aggarwal is the current Non-Executive Chairman. He started his career with SBI Capital Markets Limited and has decades of hands-on experience in the Manufacturing industry apart from having been on the board of various companies in diverse fields and geographies.
Mr. Utpal Sheth is the current Vice Chairman and Non-Executive Director. Mr. Sheth is the Chief Executive Officer of Rare Enterprises, the Asset Management firm of Mr. Rakesh Jhunjhunwala. At Rare Enterprises, he is responsible for Investment Management, Risk Management, and Institutionalization. He is also the Founder and Mentor of “Trust Group”, a full-service platform for financial services with leadership in Indian Debt Capital Markets.
Dr. Anil Pant is the current Managing Director & CEO. He has held diverse roles in various companies including Blow Plast, Crompton Greaves, Wipro, Tally, Sify, and TCS.Out of 25+ yrs of experience, Dr. Anil Pant has spent more than 15 years in the IT and Communication space handling various responsibilities including Quality, Sales, Marketing, Delivery, and Product Management culminating in P&L responsibility in the last few roles.
Highlights
- During the second quarter of FY2022-23, Aptech launched its new brand campaign titled “#HarGharHunar”, showcasing the importance of Skilled Employed Professionals (SEPs).
- In addition to existing programs, Aptech added another pathway program for higher skill development through a recent tie-up with the University of Bolton, UK & UAE which ranks among the top five for quality of education.
- Entered into an alliance with CII (West) for Project C.A.R.E. to jointly promote employability and provide career guidance to college students and freshers.
- Aptech Computer Education under Aptech Learning organized the 3rd edition of TECHWIZ, a global tech competition that saw registrations from 530+ teams with 2,500+ participants across 15 countries.
- Successfully executed the largest assessment project in the Company’s history. 3.2 million+ exams in 580+ centers (200+ cities) over 48 shifts. Peak of 1.04 lakhs nodes/ shift.
- Arena Gaming launched as a sub-brand under Arena for Gaming courses. Aptech entered Zambia with an Arena Multimedia centre in partnership with ZCAS University, Lusaka.
Awards
- Aptech and Arena won Brand of the Decade in the Education Space awards.
- Won Golden Peacock National Training Award.
- Won 11th ACEF Asian Leaders Awards
- Won 18th Franchise India Awards, 2022
- The Platinum Award at the 6th CII National HR Circle Competition 2022 in the category – Effective Use of Technology in HR.
- One of the ET Best Brands 2022 at the 5th Edition of ‘Economic Times Best Brand Conclave’ based on parameters like brand value, years of existence annual turnover, growth rate, brand recall value, etc.
- The “Franchisor of the Year (Education) – Vocational & Skill Development Training Institute” at the 18th Franchise Awards 2022 by Franchise India.
- A token of appreciation to Aptech Limited and Mr. Anuj Kacker for their contributions to the AVGC Sector at the eduSpark Awards 2022 of AnimationExpress.com.
Products & Services
- Arena Animation
- MAAC
- Aptech Learning
- Aviation & hospitality education
- Lakmé Academy powered by Aptech.
- Aptech International Preschool
- International IT and multimedia education
- Corporate training
- Assessment & Testing Solutions
- ProAlley
- Aptech IT Careers powered by HCL Technologies.
Profit & Loss
Expansions
- Aptech, commencing with the Information Technology industry, has broadened its skilling-based courses to cater to various industries within the Services sector, such as Media and entertainment, Beauty and wellness, Aviation, Hospitality, Travel and tourism, and more. This expansion is rooted in sectors exhibiting rapid growth, demanding mass entry-level skilled resources, and offering competitive compensations/ salaries.
- Company growth continues to soar establishing 15+ new franchise centers across various regions. Up in the North, the company’s reach extends to Uttar Pradesh’s Moradabad, Haryana’s Pehowa, Punjab’s Jagraon, and Patiala.
- As part of the Company’s expansion efforts, the brand announced its foray and opening of a brand-new Aptech International Preschool in PimpleSaudagar, bringing our exceptional educational experience to even more families and young learners in the community.
- Aptech successfully entered the Zambian market by establishing an Arena Multimedia center in collaboration with ZCAS University in Lusaka. This expansion reflects the division’s ability to forge strategic partnerships and extend its reach to new markets.
Positives
- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 27.1% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 51.0%
- Debtor days have improved from 116 to 44.6 days.
- Company’s working capital requirements have reduced from 96.4 days to 18.8 days
- Earnings have grown 30.4% per year over the past 5 years
- Price-To-Earnings ratio (24.3x) is below the Indian market (27.8x)
Negatives
- Unstable dividend track record
- Profit margins (13.9 %) are lower than last year (20.4%).
Warren Buffett Checklist
| Factor | Value |
| Economic Moat | Moderate |
| Growth | Good |
| Valuation | Moderate |
| Debt | Good |
| Integrity | Good |
Summary
Based on above evaluation the company have multibagger properties.
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Multibagger with Expansion Plans | Low PE Ratio | Low Book Value Ratio | Intrinsic Value Discount 70 % | PLUS Free Value Investing Education