Best Education Sector Stocks in India

12 January 2023
10 min read

"Investing in knowledge yields the best returns". Even though this dictum is over three centuries old, it is still relevant today. Indians have always been particularly obsessed with education. Despite the fact that it is not the only success metric, it certainly provides us with the foundation we need to succeed!

India has a sizable education industry that is expanding and becoming more innovative. Therefore, businesses that can innovate and scale up quickly and sustainably will provide investors with enormous returns. One of the foundations of any economy is education, which requires adequate funding. India's demand for education is rising as the country becomes more aware of its importance. However, the quality of education is frequently overlooked in the process of expanding educational opportunities.

To improve the quality of education in the nation, a small number of Indian businesses are bringing in scalable innovation. You can purchase shares of some of these companies and we have listed some of the best ones in today’s blog.

In addition, India's brisk economic development has increased the demand for educational institutions, opening up fresh investment opportunities. We will learn more about the Education Stocks with strong fundamentals that are predicted to be winners in this blog.

The Indian Education Sector: A Synopsis

The estimated value of India's education sector is $120 billion, and by 2025, it is anticipated to exceed $200 billion. In order to improve education and provide youth with skill training, the government has also established the National Skill Development Corporation and the National Education Plan, among other things. The demand for education, including web-based and other digital learning and management tools, will rise as a result of the expanding population, rising income levels, and technological advancements. The best education stocks of businesses with the ability to innovate and scale their products, then, offer investors a wealth of opportunity.

Top Education Stocks in India 2023

Let us review the top Indian Stocks in the Education Sector now that we have a better understanding of this industry.

Sr. No.

Company Name

1.      

NIIT

2.      

Aptech Education

3.      

Zee Learn

4.      

LINC

5.      

MPS

6.      

Navneet Education

7.      

Veranda Learning Solutions

8.      

S. Chand & Co.

9.      

CL Educate

10.   

Shanti Educational Initiatives

Factors to Consider Before Investing in Education Sector Stocks

Company History

You should research the education company you want to invest in. Find out what they do for a living. Read news articles about the company on its website. Please always keep in mind that it is crucial to conduct your own research before investing in education stocks and that it is crucial to be aware of reliable information about the education stock that you may be considering investing in in India.

Financial Performance of Company

To comprehend how the company has developed over time and how the Education Stock is doing over time, it is crucial to analyze past performance. You should check out the balance sheets to see how they have changed and improved over time.

Stock Value

It is possible to determine the fair value of an Education Stock. The Price to Earnings Ratio (P/E ratio) and Price to Sales Ratio are two simple techniques that can be used to determine whether the market value of a stock is consistent with the company's growth trends.

Industry Overview

Read up on the firm's rivals and industry peers. Discover what competitive advantage your business has over the competition. Analyze the sustainability of the advantage. Learn about the market share and overall success of the sector they operate in. Look for political and regulatory factors that could affect the industry.

Promoter Review

Always research the company's management team. Learn more about their history and length of employment with the company. Inexperienced top managers and frequent top-management changes could be poor indicators for choosing the right stock.

 Top Listed Education Companies in India: An Overview

 NIIT

NIIT Ltd. is an organization providing information technology services called NIIT Ltd. The business specializes in offering institutions, businesses, and people ways to develop their skills and talents. It offers a variety of managed training services, such as advisory services, curriculum design and development, learning administration, learning delivery, strategic sourcing, learning technology, and learning technology. The business offers specialized solutions, such as talent pipeline as a service, application rollouts, content curation, learner engagement, gamification, augmented reality, and virtual reality. It provides content development and has tools for gaming, simulation, high-definition video, and two- and three-dimensional animation. With structured learning pathways and a process-driven methodology, its content curation solution filters content to learners in stages.

Aptech Education

India-based Aptech Ltd. is a business involved in education. The company offers training and assessment solution services in the field of education. It has educated professionals, academics, businesses, and universities. The business only has one segment, retail. The Retail division grants franchisees licenses to use its brands to run learning facilities that provide specialized vertically focused skill-based training programmes typically in a face-to-face, in-class setting. The main goals of the programmes are to assist students in receiving the necessary training and support to land their first job. Its six brands are Aptech Learning, Aptech Aviation, Lakme Academy, Arena Animation, Maya Academy of Advanced Cinematics (MAAC), and Aptech International Preschool. Its Aptech International Preschool offers courses with durations ranging from one week to three years with a focus on job readiness. The company also provides online education in game development, animation, graphic design, and visual effects (VFX).

Zee Learn

The primary line of business for Zee Learn Ltd. is education support services. Educational Services and Related Activities, Construction and Leasing (for Education), and Training, Manpower and Related Activities are the segments of the company. The segment of Educational Services and Related Activities offers training and learning solutions. Building and leasing properties for commercial use make up the Construction and Leasing (for Education) segment. The segment for training, manpower, and related activities offers consultancy and advisory services in relation to human resources, including staffing, hiring, and other business processes. Its primary service areas include preschools, k–12 schools, and vocational education. The Company operates through Mount Litera Zee School and Mount Litera School International under the K–12 category.

 LINC

The manufacturer of writing instruments with a national and international presence in more than 50 countries, Linc Ltd. is based in India. South East Asia, the Middle East, the United States, the United Kingdom, Europe, South America, Africa, Russia, and the Commonwealth of Independent States are all regions where the company has a network. It only runs the Writing Instrument and Stationery segment. Pens, including ball, roller, and gel pens, as well as markers and hi-lighters, stationery, and disinfectants, are among its product offerings. Pentonic Pencil, Markline Lazor Geometry Box, Bensia Printed Pencil, Bensia Eraser, Linc Plus Herbal Hand Sanitizer, Signetta Gold, Signetta Supertip, Glycer (0.7 MM), Glycer (0.6 MM), Pentonic Gel Assorted, Markline Permanent Markers, Markline White Board Markers, Markline Dvd/Cd/Ohp Markers, and Pentonic Ball Assorted are among Linc TipTop, Linc High School Gel, Linc Smart OBG, Linc Ocean Gel, Linc Signetta, and other brands are some of its namesakes.

MPS

In addition to offering typesetting and data digitization services for foreign publishers, India-based MPS Limited also supports foreign publishers at every stage of the publishing process. Platforms offered by the company include MPSTrak, DigiCore, mag+, THINK360, ScholarStor, ScholarlyStats, and MPSinsight. The business offers services in content creation, production, transformation, and technology, including information service activities and computer programming. The publishing workflow is streamlined, automated, and optimized thanks to its DigiCore. A production workflow and content management platform for all product types, including books, journals, reference works, and all media, called MPSTrak is based in the cloud. THINK360 is a complete, integrated cloud-based platform that improves the user's overall experience with content management and delivery. A cloud-based HTML5 platform called ScholarStor supports all product categories and business models.

Navneet Education

Navneet Education Limited provides both print and digital educational content. The company also produces non-paper and paper stationery items in addition to general and children's books. The company's segments include Stationery Products, Publishing Content, and Others (Windmill and Trading item). In addition to other Indian and foreign languages, it has published works in English, Gujarati, Hindi, Marathi, Tamil, and Urdu. Additionally, it publishes a number of books for kids and adults that are not based on the curriculum, including coloring and activity books, board books, storybooks, books on art and artists, cooking, mehendi, and embroidery. Under a number of brands, including Vikas, Gala, Grafalco, YOUVA, TOPClass, and TOPScorer, the company sells its goods.

Veranda Learning Solutions

Based in India, Veranda Learning Solutions Ltd. a company that operates in the business of providing students, aspirants, graduates, professionals, and corporate employees enrolled in its courses with diversified and integrated learning solutions in online, offline hybrid, and offline blended formats through a variety of career-defining competitive exams, professional courses, exam-oriented courses, and short-term upskilling and reskilling programmes. It offers simple and clear long-term and short-term preparatory courses to its students who are getting ready for competitive exams. Additionally, it offers its students specialized long-term courses, short-term skilling courses, and other corporate courses. Veranda Race Learning Solutions Private Limited, Veranda XL Learning Solutions Private Limited, Veranda IAS Learning Solutions Private Limited, and Brain4ce Education Solutions Private Limited are a few of the company's subsidiaries that provide services.

S. Chand & Co.

Chand and Company Ltd. specializes in publishing educational books, offering a variety of products including schoolbooks, books for higher education, books for competitions and reference, books for professionals and technical fields, and children's books. The operating business segments of the company include K–12, Higher Education, and Early Learning. It offers Indian educational material that covers the entire educational lifecycle with content, solutions, and services. All subjects offered in the K–12 segment are covered in the K–12 content portfolio, which is available to students from the age of four through 18 and contains a wealth of educational resources spread across hundreds of programmes. Two parts of the higher education segment are test preparation and college and university/technical and professional education. In order to help students, teachers, and institutions prepare for competitive exams like entrance exams, Test Preparation offers print content and digital products.

CL Educate

Another student's educational value chain that is based in India and is called CL Educate Limited. The Company is a technologically advanced business that supports the entire student learning process. Alumni of the Indian Institute of Technology and Indian Institutes of Management make up the company's professional staff. Consumer Test-Preparation, Consumer Publishing, Enterprise Corporate, and Enterprise Institutional make up its four operating segments. Under the Career Launcher brand, the Consumer Test-Preparation segment offers both test preparation courses and non-test preparation courses. Digital and Digital are further subdivided into the segment. Technical, Non-technical, and School Business titles are distributed by the Consumer Publishing segment under the GK Publications brand. The Kestone Integrated Marketing Services brand is used by the Enterprise Corporate segment. The enterprise institutional segment provides integrated solutions to universities and educational institutions all over India.

Shanti Educational Initiatives

Indian-based Shanti Educational Initiatives Limited is a provider of school administration services. The business offers planning, construction, and management services for educational institutions from kindergarten through grade 12. It offers the best solutions to the various problems K–12 schools are currently facing. Shanti Junior, Shanti Asiatic Schools, and Shanti Hopskotch are its educational divisions. Over 25000 students attend Shanti Asiatic Schools, a K–12 school brand of SEIL, in India. Shanti Juniors employs the I-Cube Learning Ladder method of instruction. In order to give its Juniors an interactive recapitulation of their lessons, it launched an app-based learning platform called Juniors App Learn, which is available on the Google Play Store. The company offers a variety of services, such as designing the physical infrastructure of schools, advising on affiliation procedures, designing curricula, organizing and supporting extracurricular activities, training teachers, planning finances, designing campus layouts, and managing human resources.

Conclusion

In conclusion, your portfolio may find success with a number of promising educational businesses. The best education stocks are those of businesses that have proven to be flexible and capable of expanding despite industry disruptions. The group of education businesses is diverse. Others are tech firms, while still others provide a mix of in-person and online services. Some of them run physical campuses. The demand for after-school tutoring programs is rising, and for-profit education is still expanding and offering beneficial career training in a variety of industries despite receiving a lot of criticism.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here

Research Analyst – Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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