Let’s start with disclosure -
- You will find my name (Prasenjit Kumar Paul) in the list of “Top 10 Shareholders”.
- Few other shareholders in the “Top 10” list are my private clients (HNI).
- I am a SEBI registered equity analyst having my own equity advisory company and author of a best selling book.
I was thinking about writing in this topic for the last few months but didn’t do so because I had a bitter experience of writing in this forum. I had initiated article on another high potential SME stock, KP Energy http://forum.valuepickr.com/t/kp-energy-lotus-in-muddy-water/12355. However, it invited lots of unpleasant comment, personal attack just because of the fact that the stock price moved up by 40% in few days after my article. The price jump is due to the fact that I have huge followers those rushed to buy. Unfortunately, many participants in this forum labelled me as “pump and dump”, operator etc.(Although all personal attacks were deleted, still in that process I wasted my valuable time).
Anyways, here is my two cents about Global Education that can help you-
I visited in their Nagpur office and spend around 2-3 hours with the CEO Rajeev Chand, CS Preeti Pacheriwala and other directors. Frankly speaking, I was not highly impressed neither I found anything doubtful. The problem with companies in the “Service” segment is that you can’t get enough insights just by visiting their office whereas for any manufacturing business you will find enough insights by visiting factories meeting key peoples etc. Overall, it seemed a good, expandable, asset-light business model primarily banking on students from “Private Engineering/Management Colleges”.
Also, for some unknown reason, the stock price moved up from 180 level to 350 during April 2017 and then from 350 level dropped back to 170 over the last few months! I had also increased my stake during September 2017. (You will find the details in the next Annual Report)
P.S - I can’t participate/comment further in this discussion as being an equity analyst and “Top 10 Shareholder” my any kind of comment can attract unpleasant situation. It happened to my post about KP Energy and one of the moderators of this forum told that “it’s my responsibility for addressing any concerns of KP Energy!” I don’t want to repeat that kind of situation!