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Research Desk
Content In the Spotlight
In the Spotlight 1
Investment Activity 2
News and Policy Development 3
Corporate Developments 4
Stock Market Performance 5
Peer Benchmarking 6
About Four-S Services 8
Vol. 45, 8th Jan’12 – 5th Feb’12
Four-S EDUTRACK
MMoonntthhllyy UUppddaattee oonn IInnddiiaann EEdduuccaattiioonn SSeeccttoorr
India’s First Cloud-based Tablet for Students
After partnering with Datawind to launch the world’s cheapest Tablet
Aakash, the government has gone ahead and unveiled India’s first
Cloud-based Tablet called the ‘e-tutor Tablet’. Like Aakash, this Tablet
is also for students albeit this time it is for school students from class
1st to 12th.
The Tablet has been developed in a joint venture (JV) by two Kerala
based IT firms. The JV is between e-tutor and Oztern Technology. The
learning content has been developed by e-tutor while the technology
has been provided by Oztern Technology. The Tablets will be sourced
by the companies and they are still in the process of finalizing vendors
for the same. The Tablet will be priced at Rs 7,500 (inclusive of
content) and it will be made available in the Indian market from April.
The included content will be of only one standard and additional
content will have to be bought for other standards.
About Four-S Services Four-S Services is India's leading provider of Research, Financial Consulting and Investment Banking services with offices in Gurgaon, Mumbai and
Bangalore. We have a proven track record of consistently delivering high quality solutions, enabling our clients to improve the effectiveness of
decision making and acting as a catalyst in achieving business success. We have executed more than 120 mandates across diverse range of
industries including Education, Financial Services, Infrastructure, M&E, IT-ITeS, Auto and Auto ancillaries, Retail, Real Estate and Textile etc
Our Services:
Strategy Consulting
Business Planning
Investment Banking
For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com
Research Support
Valuation Services
Investor Relations & IPO Consulting
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Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com
FOUR-S EDUTRACK
Investment activity
Date Investor(s) Target Stake (%) Amount ($Mn) Business Stage
18-Nov-11 Ashmore Alchemy SEED Infotech Ltd. NA 6.3 Vocational Training Growth
23-Nov-11 Omnia VC Sunstone Business School NA NA Higher Education Early
20-Dec-12 Omidyar Network Teach for India NA 2.5 K-12 Education Early
17-Jan-12 New Silk Route Varsity Education NA NA Education Services Growth
31-Jan-12 Mumbai AngelseDreams Software
InnovationNA 1.0
Education
Software ProductsEarly
Date Acquirer Target Stake (%) Amount ($Mn) Target's Business
30-Sep-11 Edserve Softsystems Prosel Ventures NA 8.0 Education
10-Nov-11 TIME Veta 51% 12.1 Supplemental Education
9-Nov-11 Reliance Industries Extramarks Education Ltd 39% NA Supplemental Education
14-Dec-11 Career Launcher GK Publications NA NA Publications
1-Feb-12 Comp U Learn Tech India Divya Knowledge Process
Management100% NA Education Services
185.2
135.1
21
25
18
20
22
24
26
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
2010 2011
In $
mn
PE InvestmentsInvestment Amount (in $mn) No. of Deals
*Only last few deals listed above
Private Equity
Mergers & Acquisitions
Four-S Indian PE Directory 2011 – “A Guide to choosing private equity partners“
Detailed listing of ~330 Active PE/VC Investors in India - PE/VC players that have invested in the past 3 years.
A first-of-its-kind, the directory offers “Deal History” in India for individual investor.
Management, investment profile and Contact details.
User-friendly Spreadsheet Format.
It comes from Four-S Services, the most trusted deal information bank in India.
82.9
258.012
13
11.4
11.6
11.8
12
12.2
12.4
12.6
12.8
13
13.2
0
50
100
150
200
250
300
2010 2011
In $
mn
M&A Deals
Total Transaction Value (in $mn) No. of Deals
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Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com
FOUR-S EDUTRACK
News and Policy Development
Ombudsman in higher education institutions
Finding its Unfair Practices Bill stuck in Rajya Sabha for almost
a year, the HRD has found a way-out to deal with educational
malpractices in majority of higher education institutes. The
ministry on Monday decided that every educational
institution affiliated to a Central University and under control
of a Central regulator such as University Grants Commission
(UGC) and All India Council for Technical Education (AICTE) to
have an ombudsman to deal with grievances. The new system
would be in place before the next academic year. The new
direction would cover over all educational institutions, except
state universities and colleges affiliated to these universities.
Educational institutions to publish balance sheets
All educational institutes under the central government and
those that get grants or approvals from central education
regulators will be directed by the government to publish a
balance sheet every year, starting 2013, to bring in more
transparency to the sector. The educational institutes will
follow a uniform accounting norm and disclose income and
expenditure in a standard format similar to that of companies.
All Union government institutes, including central universities,
IITs, IIMs, NITs will have to adhere to the accounting
standards. Besides, all universities and colleges under the
UGC, the AICTE and the National Council of Teachers
Education will have to follow the norms. Even schools
affiliated to the Union government-controlled CBSE will have
to incorporate the accounting norms.
Only ~70,000 sign up for CMAT
Merely 70,000 aspirants across the country have registered
for the first edition of the national level Common
Management Admission Test (CMAT). The entrance test, for
admission to 3,500-odd MBA colleges in the country, will be
conducted online by the All India Council of Technical
Education (AICTE) over a period of eight days starting
February 20. The idea of a common admission test for
admissions to B-schools, barring Indian Institutes of
Management, was mooted last year. The announcement was
made in December. The idea is to have fewer entrance tests
for students to reduce stress. All AICTE-approved institutions
will have to accept CMAT scores.
MHRD to discuss merging of IITJEE and AIEEE
The Union MHRD will soon call a meeting of Indian Institutes
of Technology (IIT) Council to stamp a decision to merge the
IIT-Joint Entrance Exam (JEE) and All India Engineering
Entrance Exam (AIEEE) conducted by the CBSE. After much
resistance, the IITs have agreed to join the ministry’s bid to
have a common entrance examination for all engineering
colleges in the country. This only happened after there was
an agreement that several elements of IIT-JEE will be part of
the new national common examination.
On features of the new entrance examination aimed to
evaluate skills of a student objectively - A student’s Class 12
marks and entrance exam score will have equal weightage.
Weightage would be given to the marks obtained in class XII
boards after the results are equalized for which Indian
Statistical Institute will put in place a mathematical formula
for equalization.
Meta-university may start from next academic session
HRD minister Kapil Sibal announced that a network of
universities, forming a meta-university, will allow students to
pick courses from across disciplines from different
institutions from the coming academic session (2012-13). He
explained that this would reinterpret the concept of a
university as not just a traditional, physical space of learning,
but as a repository of knowledge and information that can be
delivered in multiple ways and can be accessed from
anywhere and anytime.
New accreditation system will ensure quality education
Engineering colleges and technical institutions in the country
would be forced to maintain quality with the National Board
of Accreditation (NBA) spearheading a new accreditation
system. Various crucial aspects of technical education would
be scrutinized and colleges that fulfill the set criteria would
get accreditation. NBA is a provisional Member of
Washington Accord, an international agreement aimed at
bringing about global quality standards in technical education
among member countries.
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Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com
FOUR-S EDUTRACK
Corporate Development
Core Leads Talks to Buy Jhunjhunwala's Stake In Aptech
Core Education & Technologies, India’s largest educational
services firm by market cap, has emerged as the front-runner
to acquire billionaire investor Rakesh Jhunjhunwala's stake in
Aptech. Jhunjhunwala is seeking a valuation of about `7bn for
his stake Jhunjhunwala purchased 36% stake in the company
six years ago at 1/3rd
the current price.
Dewan Housing Finance Eyes Education Loan Business
Dewan Housing Finance Corporation Ltd, a private sector
housing finance player backed by Caledonia Investment and
Sequoia Capital India, is expanding beyond real estate
financing and making foray into education lending business.
Dewan Housing Finance is looking to buy equity stake of an
unlisted non-banking financial company (NBFC) registered
with the Reserve Bank of India. The company proposes to
foray into the education sector in order to provide a portfolio
of education loan and allied services. Interestingly, Housing
Development Finance Corporation Ltd (HDFC) also entered
this segment by acquiring Credila Financial Services from DSP
Merrill Lynch Capital Ltd.
US hotel chain to enter education
US-based Best Western International, one of the largest hotel
chains in the world, is set to foray into the education sector in
India. The company’s India arm has identified four locations to
set up hospitality management schools in the country. The
first one will come up in Bangalore in the next six months.
Best Western, which runs hotels worldwide under the
franchisee model, will start educational institutions in the
same model, tying up with local players. The hotel chain has
an e-learning platform as well. The Bangalore training centre
will host short-term courses for at least 200 students. The
company is planning to open the other three centres in Noida,
Dehradun and Bhubaneswar.
Datawind to push for 'Made in India' Aakash tablet in next
tender
Datawind, the maker of the lowest priced tablet 'Aakash',
today will request the Human Resource Development
Ministry to include 'Made in India' clause in the proposed
tender for the low-priced device. Datawind successfully made
the $49.48 tablet Aakash in India despite various pressures.
The government plans to procure large number of low-cost
computing device to leverage benefit of broadband
connectivity in universities and colleges in a phased manner.
The ministry, in the first phase, had issued tender to procure
1 lakh devices
Comp-U-Learn acquires Divya Knowledge Process Mgt Ltd
Comp U Learn Tech India has acquired Divya Knowledge
Process Management Ltd, an educational services company
having tie-up with Bharathidasan University, Tiruchirapalli,
Tamil Nadu, for approved IT & BPO courses. Founded in 1997,
Comp-U-Learn provides internet based solutions, education
& training, e-commerce solutions, Software Design and
Development, end to end IT and business solutions. This is
Comp-U-Learn's fifth acquisition in last 3 years
IIM-Indore seeks external help for job placements
IIM-Indore plans to partner with some placement firms to
make sure that all 450 students in the current batch receive
offers. The institute is in talks with around five agencies. IIM-
Indore had not used external agencies in 2009, the toughest
year in recent memory as it followed the financial crisis of
2008. The batch size that year was 180 and the institute was
able to place all. This year the external agencies will carry on
a parallel placement process, once the institute receives a
definite number of offers by itself.
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Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com
FOUR-S EDUTRACK
Stock Market Performance
Peer Benchmarking
Market Cap Price
(` mn) (In ` ) 1 Week 1M 3M 6M 12M
Core Education 28,977 258 0.1% -0.7% -7.0% -12.9% -1.3%
Educomp 23,364 243 12.4% 21.3% -9.8% -29.6% -46.3%
Navneet 13,519 57 3.1% 6.9% -15.0% -15.6% -1.8%
Tree House 7,279 216 2.1% 23.1% 5.6% - -
NIIT Ltd 6,975 42 0.4% 10.2% -13.0% -23.5% -17.0%
Everonn 6,371 292 3.8% -12.6% -22.9% -40.0% -42.1%
Career Point 4,726 261 -3.5% 23.1% -8.3% -18.2% -22.2%
Aptech 4,436 91 1.9% 30.3% -24.2% -34.6% -16.6%
Zee Learn 3,988 15 2.6% 20.5% -19.5% -28.9% 48.7%
Edserv 1,156 44 6.7% 9.0% -54.8% -42.9% -43.6%
Compucom 1,016 13 2.5% 0.3% -19.5% -21.0% -25.1%
Jetking 385 65 9.8% 30.7% 8.3% -21.3% -43.9%
Percentage Price Change
Interim Results
Current Last Year % growth Current Last Year % growth Current Last Year % growth
Educomp March 2011-12 Q2 3,275 2,873 14% 686 1,038 -34% 128 578 -78%
NIIT Ltd March 2011-12 Q3 2,501 3,007 -17% 251 370 -32% 407 129 216%
Core Education March 2011-12 Q2 3,532 2,791 27% 1,394 996 40% 750 535 40%
Navneet March 2011-12 Q2 1,112 992 12% 187 169 11% 115 98 18%
Everonn March 2011-12 Q2 796 1,081 -26% 241 380 -37% -38 156 -124%
Aptech March 2011-12 Q2 474 540 -12% 71 87 -19% 66 55 21%
Edserv March 2011-12 Q2 362 274 32% 45 108 -58% 12 91 -87%
Career Point March 2011-12 Q2 208 256 -19% 74 142 -48% 60 112 -46%
Compucom March 2011-12 Q2 176 201 -13% 110 98 12% 30 33 -9%
Zee Learn March 2011-12 Q2 125 - -56 - -64 -
Tree House March 2011-12 Q2 175 - 107 - 53 -
Jetking March 2011-12 Q2 101 118 -15% 14 33 -56% 6 24 -76%
Year Ending QuarterFigures in Rs mn Fiscal yearRevenues EBITDA PAT
Annual Results
TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth TTM Y0 TTM Y-1 % growth
Educomp Q2 FY12 14,584 10,968 33% 5,423 4,618 17% 2,989 2,232 34% 37% 20%
NIIT Ltd Q3 FY12 14,359 11,882 21% 1,522 1,664 -9% 765 468 63% 11% 5%Core Education Q2 FY12 12,708 9,582 33% 4,885 3,387 44% 2,693 1,926 40% 38% 21%
Navneet Q2 FY12 5,836 5,471 7% 1,392 1,246 12% 867 764 13% 24% 15%
Everonn Q2 FY12 4,269 3,600 19% 1,565 1,196 31% 511 511 0% 37% 12%
Aptech Q2 FY12 1,855 1,574 18% 186 158 17% 949 66 1332% 10% 51%
Edserv Q2 FY12 1,362 852 60% 485 382 27% 316 278 13% 36% 23%
Career Point Q2 FY12 748 705 6% 228 283 -20% 238 235 1% 30% 32%
Compucom Q2 FY12 741 612 21% 441 319 38% 130 101 29% 60% 18%
Zee Learn Q2 FY12 519 - -55 - -70 - -11% -13%
Tree House Q4 FY11 392 214 84% 176 69 153% 92 26 254% 45% 23%
Jetking Q2 FY12 354 416 -15% 73 122 -40% 40 91 -56% 21% 11%
TTM QuarterRevenues EBITDA PAT % EBITDA
margin
% PAT
marginFigures in Rs mn
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Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com
FOUR-S EDUTRACK
Four-S Services Pvt Ltd
Founded in 2002, Four-S has a strong & successful track record of genuine, accurate and
objective advice to top Indian & global companies & PE Firms. Four-S has already proven
success in corporate finance, strategy consulting, fund-raising, investment banking and
investor relations mandates with 100+ corporates and large PE funds.
Four-S, trusted advisor to top Indian & Global Cos
Offering comprehensive bouquet of services to SMEs, Corporates and PE Funds
Page | 7
Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including India’s Top 5 PE Funds. For further information, please contact Seema Shukla at [email protected] or reach us as http://www.four-s.com
FOUR-S EDUTRACK
About Four-S Services
Four-S Services provides customized business and financial research to organizations across the globe. The
company also provides Investor Relations consulting to corporate based on in-depth sectoral and company
research. The company has an impressive client profile and a team of senior analysts covering key sectors
including Finance & Banking, IT & Telecom, Retail, Media & Entertainment, Pharmaceuticals, Infrastructure
and Manufacturing amongst others. For further information on the company please visit www.four-s.com
Disclaimer
The information contained herein has been obtained from sources believed to be reliable but is not
necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or
undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information,
projections or opinion contained in this document or upon which any such projections or opinions have been
based. Four-S Services Pvt Ltd. will not accept any liability, whatsoever with respect to the use of this
document or its content. This document has been distributed for information purposes only and does not
constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document
shall not form the basis of and should not be relied upon in connection with any contract or commitment
whatsoever. This document is not to be reported or copied or made available to others. The Company may
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