Veranda Learning IPO has opened today for subscription. The company offers integrated learning solutions in online, offline hybrid and offline blended formats. Veranda Learning IPO review is aimed to bringing readers up to the speed with regards to the company’s business, strengths and valuation.
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Veranda Learning IPO Review – Strengths
- Diversified course offerings and delivery channels
- Extensive experience in the education business and professionally qualified human capital
- Strong Brand Presence of brands like Edureka
- Track record of successful acquisition and expansion
- Technology driven, Asset Light & Scalable business model
Veranda Learning IPO – Risk Factors
- Intellectual property has not been registered under the patent or copyright laws
- Significant portion of revenue is derived from IT related professional courses offered by Edureka (72% of revenues in H1 FY2022)
- Significant dependance on Mentors for exam oriented and training courses
- Recently-issued NCDs secured by way of pledging 40.44% equity share capital of Edureka
Veranda Learning IPO Analysis – Financial Performance
| Â | FY2021 | H1 FY2022 |
| Revenue | 2.54 | 15.66 |
| Expenses | 10.83 | 34.14 |
| Net income | (8.29) | (18.27) |
Veranda Learning Valuations & Margins
| FY2019 | FY2020 | FY2021 | |
| EPS | (245.88) | (489.69) | (7.29) |
| PE ratio | NA | NA | NA |
| RONW (%) | NA | NA | NA |
| ROCE (%) | NA | NA | NA |
| EBITDA (%) | (288) | ||
| Debt/Equity | (0.54) | (0.40) | (99.75) |
| NAV | (242.50) | (732.50) | (0.02) |
Veranda Learning IPO Review – Broker Calls
Angel One –
Arihant Capital –
Ashika Research – Not rated
Asit C Mehta –
BP Wealth –
Canara Bank Securities – Avoid
Choice Broking – Avoid
Elite Wealth –
GEPL Capital –
Hem Securities – Avoid
ICICIdirect –
KR Choksey –
Marwadi Financial Services –
Motilal Oswal –
Nirmal Bang –
Religare Broking –
Samco Securities – Avoid
Share India Securities –
SMC Global – 1.5/5
Systematix –
Ventura Securities – Not rated
