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:
- 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|
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
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