Core Education: Is it a Buy ?

By | February 26, 2013

Core Education shares dropped as much as 65 per cent to Rs. 99 before making some recovery. It is India’s largest global education company and provides transformational and innovative solutions in the education space. Core Education had reported a consolidated sales turnover of Rs. 485 crore and a net profit of Rs. 68 crore for the October to December quarter.LIC has 2% stake in core education,many leading FII have 12% stake. As rumors were saying selling of pledged shares, which have gone completely wrong. As management have clarified and as per exchange data  Cresta Fund sells 13.75 lakh shares of CORE Education where the daily average is just 30K shares because of this demand and supply mismatch stock took a plunge. To add to woes stock does not have any circuit filters.

Stock fundamentals have not deteriorated overnight.It`s just the matter of oversupply as Cresta fund has dumped 13.75 lakh shares against the daily trading of 30k shares hence creating a chain reaction. Also the Stock has history of creating such panic fall in few sessions as depicted in below charts.

 

Panic Fall in 2008 Stock went from 250 to almost 34 Rs in matter of few sessions.

Core Project 2008 Crash

 

After the Panic fall slow and steady recovery. Buy when there is Blood on the Street, Investors having patience more than tripled money in matter of year.

 

Money Double Core

 

Again Panic fall in 2009 Swift recovery and Stock went to create an All time High.

Core Nov 09

 

So looking at the past evidence stock fundamentals are sound, All one require is patience to Buy and Hold.  Please do not invest 100% in a single shot, Only invest 30-40% now and if there is more decline looking at overall structure of market , you can BUY more.

 

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5 thoughts on “Core Education: Is it a Buy ?

  1. Bramesh Post author

    Dear Vishal,

    when Liquidity is scarce, Fundamentals always take the backseat. If i remember correctly ICICI was trading at Rs 295, back in 2010 and everyone want to sell stock at any price due to some rumors in market but if one believed on fundamentals would have made a killing.

    Rgds,
    Bramesh

  2. Vishal Dangaich

    I completely disagree with u. Why would the Fund sell all its holdings in a day and that too in such a great discount. Selling of pledge shares might not be the reason but there is something which is gone wrong in the counter. so the selling have taken place. Without any reason the Funds will not sell any shares of the company.

  3. hesh

    Dear Sir,

    Very nice analysis of particular stock as of now rest all stock analysis posted on this blog.

    at the time of buy investor should take help of 2 technical indicator.
    1) RSI
    2) MACD

    When Rsi go below 30 & come out above 30 (Investor Start Buying)
    Also take help of MACD positive when red line is above blue line (Best ex.: you can see here posted first chart of crash 2008)

    With 2 indicator help people can start partially buy this stock with prior SL.

    He$H…

  4. mehul

    Why Core education dont have any circuit limit?????

    What is the logic behind that???

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