Best Education Stocks in India
(The stocks mentioned in the blog are as per Market Capitalization)
In India, the education sector is witnessing significant growth and transformation, driven by government initiatives such as the National Education Plan and the National Skill Development Corporation. These initiatives aim to enhance education quality and provide skill development opportunities to the youth.
With a growing population, rising income levels and increasing innovation, there is a surging demand for education, including internet-based and digital learning solutions.
As a result, investors are keenly looking for the best education stocks in India, recognising that companies capable of innovating and adapting to changing trends will likely outperform the market over time.
Education Sector in India - A Brief Overview
India's education sector comprises a wide formal education industry catering to the needs of various age groups. It includes institutions dedicated to preschool, K-12 schooling and higher education and research. Due to its significant youth population, approximately one in four individuals in India requires a highly skilled workforce across various industries and sectors.
The implementation of the National Education Policy (NEP) 2020 by the government represents a groundbreaking initiative aimed at transforming the Indian education system.
The NEP focuses on making significant changes to the curriculum to enhance foundational skills, with a primary emphasis on holistic student development. Additionally, it aims to make India a top choice for higher education by encouraging partnerships and exchange programs between Indian and foreign institutions.
The education sector in India is poised for substantial growth, with projections indicating that it will reach a value of US$225 billion by FY25. Currently estimated at US$117 billion, the sector is expected to grow to US$313 billion by FY30.
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Top Education Stocks in India in 2024 as per Market Capitalisation
The following table mentions the top listed education companies in India according to market capitalisation-
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Best Education Sector Stocks in India (as per market capitalisation) |
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*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog. |
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Overview of Best Education Sector Stocks in India
Here is a comprehensive overview of the best education stocks in India as per market capitalisation:
1) NIIT
Established in 1981 to address the IT industry's workforce needs, NIIT Group is an Indian IT services company that focuses on providing skill development solutions to individuals, businesses and educational institutions.
Operating in over 30 countries, NIIT Group provides exceptional learning solutions. The group consists of NIIT Limited (NIIT) and NIIT Learning Systems Limited (NIIT MTS), which deliver diverse learning and career acceleration programs focusing on the technology and banking sectors.
It offers managed training services covering curriculum design, custom content creation, learning delivery, administration, strategic sourcing, technology advice and more.
Additionally, NIIT offers specialised solutions like customer education, gamification, application rollouts, talent pipeline services, content curation, learner engagement, etc. Moreover, it employs a structured approach to content curation, guiding learners through phased learning pathways.
2) Veranda Learning Solutions
Established in 2018, Veranda Learning Solutions provides diverse and integrated learning solutions available in online, hybrid and offline blended formats.
Their educational offerings are tailored to students, graduates and corporate employees who are preparing for various competitive exams like insurance, railways, banking, State Public Service Commission, IAS, CA, etc. Their courses are also suitable for those seeking short-term upskilling or reskilling opportunities.
Veranda Learning Solutions provides customised courses and corporate training, ensuring learners receive comprehensive support in their educational journey.
Additionally, through subsidiaries like Brain4ce Education Solutions Private Limited, Veranda XL Learning Solutions Private Limited, Veranda Race Learning Solutions Private Limited and Veranda IAS Learning Solutions Private Limited, the company extends its reach and expertise in delivering quality education.
3) Aptech
Based in India, Aptech Limited is a vocational training company catering to various sectors like IT, media, retail, aviation, beauty, banking, and pre-school education. It provides training to students, professionals, universities, and corporations through two main business streams: Individual Training and Enterprise Business Group.
Under Individual Training, it offers career and professional training through brands like Lakme Academy Powered by Aptech, Maya Academy of Advanced Creativity, Aptech Aviation Academy, Aptech Learning, Arena Animation and Aptech International Preschool. Its Enterprise Business Group offers training and assessment solutions for corporates and institutions, including Aptech Training Solutions and Aptech Assessment & Testing Solutions.
4) Career Point
Since 1993, Career Point Limited has been a prominent Indian education company renowned for its quality education offerings. With a strong reputation for academic excellence, Career Point caters to students across all educational stages, from kindergarten to PhD.
The company provides a diverse range of products and services in both regulated and non-regulated education sectors, including preschool, K-12 school education, test preparation, higher education, e-learning, and vocational education.
It has 3 main divisions: Education & Related Activities, Financing and Infrastructure. Career Point's subsidiaries, Career Point Edutech Limited and EduTiger Private Limited, deliver services through several online platforms: eCareerPoint, CPLive, CP eTutor and CP eTest. eCareerPoint, a technology-driven online learning platform, caters to aspirants preparing for various competitive examinations through web and mobile applications.
5) Global Education
Global Education Limited was established in 2011 and is headquartered in Mumbai with a branch in Nagpur. The company operates in 2 segments - Educational Business Support Activities and Educational Training and Development Activities.
Its offerings include Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), publication, distribution of NCERT books, medical simulation training, training services, online exams, power training, digital services, facility management and placement services.
Global Education provides a range of services such as infrastructure facilities, medical and soft skill training, marketing through print and television ads, online exam administration, as well as designing and space management.
Additionally, it supplies computer hardware and printed materials like prospectuses, journals and books to educational institutions. The company offers educational services and consultancy, serving over 36 major organisations and institutes.
Factors to Consider Before Investing in Education Sector Stocks in India
Here are some crucial factors to consider before investing in the education sector stocks in India:
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Financial Performance
Before investing in education stocks, you must assess the financial performance of the company. Check their sales revenue, profit margins and their investment returns.
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Market Trends
You should pay attention to what is happening in the education sector right now and what experts predict for the future. Think about how more people are learning online, technology is getting better, and there are laws to support schools and education businesses.
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Regulatory Environment
You must monitor the political and regulatory factors impacting the education sector. Changes in government regulations can impact educational institutions' operations and profits.
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Integration of Technology
Companies that use technology well can handle changes better and stay strong. See if education companies are coming up with new ideas and ways to change how things are taught.
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Global and Economic Factors
Pay attention to global events and their potential impact on the Indian education sector. Economic downturns or such significant events can change how much people spend on education.
Should You Invest in Education Sector Stocks?
When considering whether to invest in education stocks, it is crucial to weigh the associated risks. Firstly, technological risks emerge from the difficulty of blending technology with traditional teaching methods. Second, regulatory changes can disrupt institutional operations, posing regulatory risks.
Moreover, global competition from international education providers can challenge local institutions. Lastly, economic fluctuations directly impact the education sector, affecting both enrolment and funding. Evaluating these risks is essential for making informed investment decisions in the education sector.
The Bottom Line
With the emerging population, the education sector in India is witnessing the emergence of more education companies.
Some educational institutions mainly focus on technology, while others offer both online and in-person services. Therefore, you must invest in education stocks in India that adapt to changing trends, have growth potential, and demonstrate resilience, especially during challenging times.
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*Stock Selection Criteria for Top Stocks Based on Market Capitalisation These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.). |
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Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory. To read the RA disclaimer, please click here |