Equity Watch

VISU INTERNATIONAL could be takeover target

Visu International ,a pioneer in the field of Global Education was started in 1983 by Mr. C.C. Reddy an NRI from US.To date it has 73 offices worldwide and has placed more than 75000 students in Universities abroad.Its corporate office is in Hyderabad and International office in New Jersey US.It offers the following services:

  • Councelling
  • Coaching for TOEFEL , GRE , GMAT , SAT  in India .About 30000 students per year are getting coaching in various centres within India.
  • Application Processing for admission abroad
  •  e- application status
  • Visa guidance
  • Post Visa services
  • Bank Loan guidance
  • Traval Assistance

Next year is the Silver Anniversary Year of Visu International and Management is hopeful of surpassing Rs. 100 crore turnover with a significant increase in the bottom line.See the financials below:

Scrip Code : 590038    Company Name : Visu International Ltd
Type UnAudited UnAudited UnAudited
Date Begin 01 Apr 06 01 Apr 05 01 Apr 04
Date End 31 Mar 07 31 Mar 06 31 Mar 05
Description Value(Rs. million)
Net Sales 941.19 715.33 219.05
Other Income 4.74 0.36
Total Income 945.92 715.69 219.05
Expenditure -770.21 -618.6 -181.68
Operating Profit 175.71 97.09 37.37
Interest -8.16 -5.07 -5.45
Gross Profit 167.55 92.02 31.92
Depreciation -12.41 -9.78 -6.36
Profit before Tax 155.14 82.25 25.57
Tax -13.11 -10.71 -8.73
Profit after Tax 142.03 71.54 16.84
Net Profit 142.03 71.54 16.84
Equity Capital 353.3 135.8 100.8
EPS 4.02 5.27 1.67
Nos. of Shares – Non Promoters 32801996 12551996 3751996
Percent of Shares – Non Promoters 92.84 92.43 37.22
Result Type A A A
  Notes Notes Notes  

Financials downloaded fro BSEINDIA

Company is raising funds to the tune of US $ 20 million through GDR and FCCB

Recently many Venture Capitalists and angel investors are investing their funds in Global Education model of Visu International.One such company is Princeton Review  based in Bangalore, India .With the demand for quality education increasing by the day and constraints on limited seats availability in good institutes in India, companies offering  such services are expected to do very well in future.Visu International has the First Mover advantage.

Buy in the co’s scrip is rcommended for the following 2 reasons:

1.Company’s equity is Rs. 35 crores and Market capitalisation at CMP of Rs. 14 comes to less than Rs. 50 crores or just about US $ 12 million.With 73 offices worldwide and many more in India,turnover expected to cross Rs. 100 crores in FY08 and bottomline to Rs. 20+ crores scrip appears to be HIGHLY UNDERPRICED at P/E of 3.

2.The promoters holding / stake in the co’s equity capital is only 7 % and mgt.is going to issue GDR/FCCB to the tune of Rs. 80 crores.Takeover of the company becomes so very easy either through buying the scrip on the Indian bourses or through GDR/FCCB route.Unless the promoters increase their own stake to more than 35% take over is a distinct possibilty.In either scenario the existing shareholders shall get a bonanza.Scrip may head towards Rs. 50 mark in a few years.

BUY is recommended at CMP with 2 years HOLD

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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3 thoughts on “VISU INTERNATIONAL could be takeover target

  1. Great blog! I definitely love how it is easy on my eyes and also the details are well written. I am wondering how I might be notified whenever a new post has been made. I have subscribed to your rss feed which really should do the trick! Have a nice day!

    Like

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