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SMR
06-02-2015, 10:40 PM
Tree House Education & Accessories Limited is an India-based educational company. The Company operates a pre-school chain in India. The Company is engaged in providing education and related services, including leasing of education infrastructure. Tree House offers a range of courses for different age group of children from Play Group, Nursery, Junior KG, Senior KG, Mother Toddler, Activity Classes, Teacher Training and Summer Camps. The Company provides a range of educational services to K-12 schools, which include designing curriculum and providing teaching aids, supplying methods for imparting education, organizing extracurricular activities for students and teacher training. The K-12 segment represents approximately 24 K-12 schools providing education.

Official website: www.treehouseplaygroup.net

SMR
06-02-2015, 10:43 PM
Tree House Education & Accessories (THEAL) reported a mixed set of numbers for 4QFY2015. Its top-line increased by an impressive 41.8% yoy to Rs50.7cr, led by addition of 50 new pre-schools. EBITDA grew by 24.3% yoy to Rs23.6cr; however, EBIDTA margin came in at 46.5% as against 53.1% in 4QFY2014. This is owing to higher advertisement expenses during the quarter (4QFY2015). Depreciation increased by 77.4% yoy and came in at Rs7.8cr while interest expense increased by 36.9% yoy and came in at Rs3.5cr. However, on back of higher other income which came in at Rs6.2cr against nil in the corresponding previous year quarter, and due to lower tax rate of 7.3%, the company reported a 112.7% yoy increase in its net profit to Rs17.1cr. Scalable business model to ensure healthy growth: The company has been successful in increasing its presence outside Mumbai, specifically in tier II and tier III cities. Further, the company plans to add 150 pre-schools in FY2016 and FY2017 and enter the untapped Delhi region which has huge potential. The day care service has been receiving good response and other service offerings too are gaining traction, which will support growth. Profitability to improve on back of debt repayment and monetization of assets: THEAL successfully completed a Rs200cr QIP in December 2014. The proceeds will be used to support its expansion plans and towards repayment of debt which will lower its interest outgo. The company will continue to monetize its remaining K-12 assets which will help in creating an asset-light business model overall. Outlook and Valuations: We continue to remain positive on the stock, as we believe THEAL will continue to register robust growth going ahead, with consistent expansion of pre-schools and repayment of debt which would boost earnings. We expect the company to post a revenue CAGR of 24.9% to Rs324cr while EBIDTA is expected to grow at a CAGR of 24.4% to Rs184cr over FY2015-FY2017. The Adj. net profit is expected to grow at a CAGR of 22.7% to Rs92cr over FY2015-17. We recommend an Accumulate rating on the stock, with a target price of Rs433, valuing the stock at 20x on FY2017E EPS of Rs21.7.

Source: http://www.angelbroking.com

SMR
08-07-2015, 07:45 AM
For 1QFY2016, Tree House Education & Accessories (THEAL)ís top-line and bottom-line have come in in line with our estimates. The top-line growth was strong mainly due to strong addition of 35 new pre-schools. On the bottom-line front, the company has reported healthy numbers due to strong revenue growth and operating performance. However, lower other income and higher taxes restricted profitability. Top-line grows ~28% yoy: THEALís top-line rose by ~28% yoy to ~Rs69cr which is in line with our estimate. The growth came on the back of strong addition of preschools as well as growth in existing pr-schools. During the quarter, the company has launched pre-shcools in new cities like Solapur, Sangli, Akola, Bareilly, Aurangabad, Satara, Amravati, Hoogly, and New Delhi. Strong operating performance boosts profitability: For the quarter, the companyís bottom-line (adj. PAT) came in at ~Rs20cr, up ~24% yoy, owing to a strong operating performance (margin expansion of 230bp yoy). However, one-time other expenses, lower other income, and higher taxes restricted the profitability. Outlook and Valuation: We continue to remain positive on the stock, as we believe THEAL will continue to register robust growth going ahead, with consistent expansion of pre-schools and repayment of debt which would boost earnings. We expect the company to post a revenue CAGR of 24.9% to Rs324cr while EBIDTA is expected to grow at a CAGR of 24.4% to Rs184cr over FY2015-FY2017. The Adj. net profit is expected to grow at a CAGR of 22.7% to Rs92cr over FY2015-17. We recommend an Accumulate rating on the stock, with a target price of Rs433, valuing the stock at 20x on FY2017E EPS of Rs21.7.

Source: http://www.angelbroking.com/