Incorporated in 2014, Tutorials Point (India) Ltd is a Hyderabad-based online education service provider. It creates and publishes self-learning content including tutorials, educational content, and videos for IT professionals and others. This e-learning content is made available online for free to all through its website and YouTube. It is used by millions of people across the globe. Currently, the company operates from the registered office in Hyderabad only. The flagship e-learning portal TutoralPoint.com is among the most popular and well-known e-learning portals in the world. It is ranked as 495th most popular website in the world and 91st in India. It has the largest tutorial library to learn a wide range of topics including programming languages (i.e. Python, Java, C++) and non-technical (i.e. soft skills, competitive exams). Mr. Mohtashim, the Managing Director of the company started the website to deliver "Simply Easy Self-Learning" to the masses for free. The website today delivers clear, crisp, and to-the-point content on technical and non-technical subjects to make learning easy for the readers. In the financial year 2018-19, it has around 128.78 million readers accessing 1000+ tutorials in 25+ categories. It also has 12,000+ videos and 8 lakhs+ subscribers on YouTube channel. Total views on the YouTube channel are more than 8.50 cr per day. Tutorials Point has also launched an online coding terminal tool called Coding Ground which allows users to compile, verify, execute, edit, and creates a short link for the program. Tutorials Point has initiated a new project named Tutorix that offers an engaging educational kit (tablet with preloaded content or online) for Math & Science for 6th-12th classes along with IIT-JEE & NEET exams preparation. This is similar to BYJU's learning app. Around 45.85% of its users are female and 54.15% are male. And around 61% of viewers are in the age bracket of 18 to 34 years, 28% are in the age bracket of 35 to 54 years & rest 11% of users lie in the age bracket of 55+ years. These metrics help TPIL to identify the type of content that is required to be published and then create such tutorials in minimum turnaround time. As per the financial performance front, Tutorials Point has posted turnover/net profits of Rs. 10.37 cr. / Rs. 2.93 cr. (FY17), Rs. 10.25 cr. / Rs. 3.71 cr. and Rs. 10.35 cr. / Rs. 4.03 cr. (FY19). Company has shown static top-line, but its bottom-line has shown growth and its due to efficient cost management and no additional cost is now incurred for content creations. For, its new project "Tutorix", it is being funded from internal accruals and IPO fund will be used for it. For last three fiscals, Tutorials Point has posted an average EPS of Rs. 4.98 and an average RoNW of 40.91%. The issue is priced at a P/BV of 3.84 on the basis of its NAV of Rs. 16.66 as on 31.03.19. If we take FY19 earnings and attribute it on fully diluted equity post issue, then asking P/E is around 16.91, which is fully priced in current market scenario. As per RHP, there is no listed peers which can be compared with Tutorials Point. On BRLM's front, for Holani Consultants Private Limited, this is the 4th IPO in last three fiscals and from last 3 IPOs, one opened at par and remaining above issue price with around 7% to 50% premium on the day of listing. As of now, two are trading below issue price and remaining one above issue price. ( As on 27.09.19 ) Company has shown static results with increase in bottom-line, RoNW 32.20% and issue looks fully priced. With focus of Government on Digital India and education, company has good growth opportunity. Company has bright prospects once its project Tutorix goes live. Performance of BRLM is poor after listing, So we give NEUTRAL rating to this SME IPO and it may give good returns in long term if Tutorix works well for company.
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