Aptech has Hit a New 3-Year High Ahead of its Board Meeting

Aptech, a leading vocational training and skill development organisation, has reached a new 3-year high on the bourses. The company has rallied to as high as Rs. 304 on BSE on this Tuesday’s intra-day trading. This happened a day ahead of the company’s scheduled board meeting to launch a new line of business.

Aptech announced its board meeting on 23 August 2021, and in the last 6 trading days, Aptech’s stock has rallied 23% after it broke the news about its board meeting.

Aptech is Putting in Place the Measures to Ensure Performance

Aptech’s financial report for FY2021 mentioned the implementation of ‘Digital Pivot’ and how it has helped the company. To elaborate, the said mechanism has helped the company reduce the impact of Covid-19 to great lengths.

Also, its initiative of cost rationalisation ensured a positive performance in the previous financial year. According to senior executives, such measures will continue to prove useful in mitigating the effects of this pandemic on its revenue. Its revenue flow was significantly hampered due to the closure of its centres and subsequent classroom teaching.

A senior member of Aptech mentioned that they feared a stark reduction in their enrollment due to the second wave of Covid-19. However, they predict a positive second quarter of FY2022 and expect to carry on the same performance throughout this fiscal year. Additionally, the economic activities are now improving, and market trends suggest a positive year ahead.

More about Aptech In Brief

Aptech is one of India’s leading vocational and non-academic training providers, with experience of over 30 years. The company started its operations in 1986 and currently has more than 800 centres. Aptech has operations in India and overseas.

Over the years, the company has ventured into different verticals, including –

• IT training
• Aviation
• Retail
• Beauty and wellness
• Finance and banking
• Different pre-school segments
• Media and entertainment

Besides, the company offers various individual training courses through its partner brands such as Maya Academy of Advanced Cinematics, Arena Animation, Aptech learning, Aptech Aviation Academy, and others.

As of March 2021, the company has a net operating income of Rs. 1180.80 million, and an operating profit of Rs. 154.80 million. In the last fiscal year, Aptech has registered a profit after tax worth Rs. 122.60 million.

Parting Thoughts

Indian economy is now showing signs of recovery, and experts believe it will be steady in the next few quarters. In the midst of it, Aptech’s decision to venture into a new business segment created excitement among its current and prospective investors. Hence, this sudden surge in its share price indicating a strong performance of this stock. Nonetheless, if you plan to invest in this stock, it is ideal to study the company’s financials, prospects, and limitations in detail.

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Frequently Asked Questions

1. What is Aptech Limited’s current market capitalisation?

At the time of writing, the market capitalisation of Aptech Limited is Rs. 1258 crores.

2. What is Aptech Limited shares’ face value?

The face value of Aptech Limited share is Rs. 10 per share.

3. What is Aptech Limited’s sector P/E?

The current sector PE ratio (on 1 September 2021) for Aptech Limited is 76.92.