과천토익과외 ource: CLSA Asia-Pacific Markets Recommendation history - Educomp Solutions EDSL IN Date Rec Closing price Target 10 January 2008 BUY 4,359.80 7,000.00 24 July 2007 BUY 2,140.60 3,500.00 04 June 2007 BUY 1,875.80 2,200.00 Source: CLSA Asia-Pacific Markets Educomp is very well positioned 과천 토익Educomp stands out from its peers Educomp Solutions - BUY Indian education 70 bhavtosh.vajpayee@clsa.com 14 March 2008 Risks & drivers Investment by numbers Risks to our view Key earnings drivers Year to 31 March 2006A 2007A 2008CL 2009CL 2010CL Smart Class schools, EOP 91 331 800 1,500 2,500 Classes과천 토익 per school 15 25 25 25 25 Monthly fee per student 137 128 150 150 150 Students per class 50 45 45 45 45 ICT schools, EOP 700 2,808 8,000 15,000 25,000 Monthly ICT fee (Rs) 25,000 22,379 18,000 18,000 18,000 K-12 schools 5 25 65 Initial utilisation in K-12 50 50 60 Capex (Rsm) 116 639 1,219 3,842 7,186 Educomp has scaled 과천 토익 up in multiple segments of the Indian education space, some being large markets and others among the fastest growing. 42% of its FY08CL revenue come from Smart Class, a multimedia content offering within classrooms. Educomp has 500+ schools signed up as of last quarter and the adoption of this unique proposition is expanding as 과천 토익 more schools accept the viability and positive results out of multimedia education. It targets 825 schools by March 2008, and we estimate 2,500 by March 2010. Educomp implements IT training within public schools under BOOT contracts. 6,000+ schools have signed up, making Educomp nearly 2x as large as its nearest competitors, Everonn and NIIT. The government's spend on education is increasing, and over 25,000 schools are expected to be bid in CY2008. This business is about 33% of FY08 revenues. Educomp has also entered the highly lucrative school-management space for K-12 schools. By consolidating suppliers to schools - lessors, intellectual property or school management - Educomp can tap into annuity revenue streams with 50%+ operating margins. It is set to manage 100 schools in three years, and 150
