Veranda Learning Solutions stock gains 29% in two sessions; here’s why
Shares of Veranda Learning Solutions, a coaching services provider, rallied sharply over the last two trading sessions, gaining 29% to ₹258.60 apiece as investors were impressed with the company’s Q2FY24 performance.
The company is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid, and offline blended formats. For the September ending quarter (Q2FY24), the company posted a robust revenue of ₹100.27 crore as compared to ₹38.77 crore in the same period last year, which reflects a growth of 159% YoY.
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The operating profit improved to ₹16.75 crore in Q2FY24 as compared to a loss of ₹15 crore in Q2FY23, while the EBITDA margin came in at 15.10%. Its net loss narrowed to ₹1.53 crore as compared to a net loss of ₹21.13 crore in Q2FY23 and ₹19.33 crore in Q1FY24.
For H1FY24, the revenue stood at ₹170.75 crore compared to Rs. 67.40 crore in H1FY23, witnessing a growth of 153.34% YoY. The company announced an EBITDA of ₹22.39 crore for H1FY24 marking a substantial recovery from the operating loss of Rs. 28.41 crore in the corresponding period of the previous financial year.
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This was possible on the back of a remarkable revenue surge, arising out of a year-on-year operating revenue growth of 157.06%. The total number of students trained by the Veranda Group for H1FY24 stood at 4,21,327, with 2,00,574 students trained in the September quarter, as per the company’s Q2 earnings report.
On April 7, 2022, the company’s shares debuted on the Indian stock exchanges with a listing gain of 17% at ₹160.4 apiece, as compared to the issue price of ₹137. Veranda Learning had raised approximately ₹200 crore through its initial public offering (IPO).
Following its strong listing, the stock further witnessed an impressive 122% surge in the next five months, reaching a peak of ₹380 per share. However, the stock encountered a downward trend until October 2023 before experiencing a significant spike in November.
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In the current month so far, the stock has soared by 39%, marking its best monthly gain since its listing month of April 2022. With the current trading price at ₹251 apiece, the stock is currently trading 84.8% higher than its issue price.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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Updated: 16 Nov 2023, 12:32 PM IST