Career Point heads north after mulling acquisition

Career Point rose 1.28% to Rs 103 at 14:45 IST on BSE after the company signed memorandum of understanding for considering possible acquisition of e-learning company Plancess Edusolutions.

The announcement was made during market hours today, 30 June 2017.

Meanwhile, the S&P BSE Sensex was up 6.43 points or 0.02% at 30,863.95. The S&P BSE Small-cap index was up 27.79 points or 0.18% at 15,338.

On the BSE, 21,000 shares were traded on the counter so far as against the average daily volumes of 5,787 shares in the past one quarter. The stock had hit a high of Rs 111.15 and a low of Rs 101.75 so far during the day. The stock had hit a 52-week high of Rs 141.75 on 26 October 2016 and a 52-week low of Rs 93.70 on 16 June 2017.

The stock had outperformed the market over the past one month till 29 June 2017, falling 0.78% compared with 0.81% fall in the Sensex. The scrip, however, underperformed the market in past one quarter, falling 4.73% as against Sensex's 4.49% gains. The scrip had also underperformed the market in past one year, sliding 10.83% as against Sensex's 15.4% gains.

The small-cap company has equity capital of Rs 18.13 crore. Face value per share is Rs 10.

Career Point said that the company is evaluating acquisition of majority shareholding in Mumbai based Ed-tech company Plancess Edusolutions. Career Point and Plancess Edusolutions have entered into a confidential and exclusive memorandum of understanding (MoU) to execute the proposed transaction. The discussion between the two companies is in advanced stages wherein final execution shall be subject to due diligence, regulatory and other approvals, as applicable.

Plancess Edusolutions provides learning solutions for class IX and XII students and competitive examinations such as JEE, NEET, CAT, Bank PO etc.

Career Point's consolidated net profit spurted 67.1% to Rs 4.98 crore on 9.4% increase in net sales to Rs 21.69 crore in Q4 March 2017 over Q4 March 2016.

Career Point caters to the needs of a student throughout the life cycle of a student (KG to PhD) while operating in both formal and informal education streams.

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