Ascensive Educare Limited

Ascensive Educare Limited is a skill development company offering vocational training, and educational consulting in collaboration with Central Government, State Governments, and various Industries and Industry Associations. The company provides the platform for the skill developments at the grass-roots level to skill and re-skill the workforce of India. The company is NSDC accredited with NSFQ compliant course curriculum. The training courses are provided by experienced trainers certified by the Sector Skills Council. The company has trained more than 50,000+ trainees under various hardware, networking and management programs in Kolkata. Apart from providing national vocational qualifications, the company also delivers short courses, skill sets, and workshops to professionals and businesses. As per financial performance, AEL has posted total income/net profits of Rs 9.18 Cr / Rs 0.28 Cr (FY19), Rs 9.61 Cr / Rs 0.44 Cr (FY20), Rs 10.27 Cr / Rs 0.43 Cr (FY21) and Rs 3.21 Cr / Rs 0.11 Cr (Q1 FY22). So company has shown average results over last couple of years. Company has posted an average EPS of Rs 1.77 and average RoNW of 15.74% for last three fiscals. Issue is priced at a P/B of 1.58 as per NAV of Rs 16.47 post issue. As Per FY21 earnings on fully diluted equity post issue, asking price is at P/E of around 19 and as per annualised FY22 earnings P/E is 19. As per RHP, there are no listed peers.     On BRLM's front, GYR Capital Advisory Private Limited is associated with this IPO, and have handled around 1 IPO in last three fiscals which opened above issue price and as of now, trading below issue price. ( As on 28.12.21) As per financials, AEL has shown average financials, RoNW is 15.09% and P/E is respectively 19 and 19 as per FY21 and annualised FY22 earnings, which looks very fully priced. Population of BHARAT is second largest in world and demand for skill development will be always high. So there is good growth opportunities, but this segment is very highly competitive and companies from education sector never performed well in past. So, we are giving AVOID rating to this IPO.

• 1 Mr. Abhijit Chatterjee 
• 2 Mrs. Sayani Chatterjee