Global Education Ltd (GEL), a prominent educational service provider, has announced a stock split, dividing its equity shares from a face value of ₹5 to ₹2 each. The split aims to increase share liquidity and make the stock more accessible. Below, we outline the stock split details, provide an overview of Global Education Ltd, and examine its financial performance.
Stock Split Details
The stock split will create two new shares for every existing share. Although the authorized share capital remains at ₹12 crore, it will now comprise:
- 5,97,50,000 equity shares of ₹2 each
- 5,00,000 redeemable preference shares of ₹1 each
The record date for the stock split is Tuesday, December 10, 2024. Shareholders on this date will be eligible for the split.
About Global Education Ltd
Established in 2011, GEL offers a comprehensive range of services to educational institutions, corporations, and banks. These include:
- Business consulting and skill development programs
- Admission assistance and online examinations
- Infrastructural support, marketing, and branding
GEL also provides computer hardware and educational materials to institutions. Its clientele includes major firms like Capgemini, HCL, and Wipro, reinforcing its reputation as a trusted partner in the education sector.
Financial Performance
GEL’s financial results reflect strong growth:
- Q2FY25 vs. Q1FY25:
- Total income increased by 68.6% to ₹25.66 crore.
- Net profit rose by 50.9% to ₹10.65 crore.
- H1FY25 vs. H1FY24:
- Total income grew by 6.5% to ₹40.88 crore.
- Net profit declined by 8.8% to ₹17.75 crore.
GEL is debt-free with a 35.5% CAGR in profit growth over the last five years. The company maintains a healthy dividend payout of 28%, reflecting strong shareholder returns.
Strengths and Market Position
GEL has a market capitalization of ₹401.06 crore and has show operational efficiency in core business:
- Return on Equity (ROE): 40%
- Return on Capital Employed (ROCE): 55%
- Stock Performance: The stock has delivered 1,430% returns over the past five years, cementing its status as a multibagger.
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