In my limited understanding education companies have seldom generated wealth for investors. I know little about CL Educate’s business. But, I’m fairly certain of one transition that India is currently witnessing- Digitisation. And it’ll only grow. Online education is the future.
I’ll share with you my experience- When I was in the 12th grade few years ago I had enrolled in coaching classes. The teaching was mediocre. By a stroke of chance I came across lectures on YouTube. Excellent lectures for no cost. I was delighted. My happiness knew no bounds. It saved me the expense of trevelling and also saved time. And teaching was top notch. There was no reason I’d ever attend lectures at classes. Unless, online lectures weren’t available for the subject. For the core courses offered by CL Educate there are plenty of fine lectures available online. Great quality at an affordable price. A perfect combination for any aspirant. If CL Educate can’t offer these services the company has little chance of survival. And, frankly I don’t think CL Educate possesses the ability to migrate to online courses. Also, there’s the absence of willingness to change. Most companies refuse to adapt to changing circumstances and cease to exist. Market seems to have sensed it and thus it’s available a cheap valuations. There’s a good chance their performance will deteriorate. I personally don’t have the courage to invest in education companies.
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