Visu International - Rs.13.00

Started in 1983, Visu International Ltd. (VIL) erstwhile known as Visu Consultants was promoted by Mr. C. C. Reddy, an NRI from USA who is currently the Chairman of the company. From a humble beginning, he has succeeded in the uphill task of dispelling all the myths usually associated with 'study abroad' and have brought the concept of overseas education to the doorstep of every student by making it affordable and devoid of cumbersome procedures. Hence, VIL has been a pioneer in global education and consultancy business apart from being a household name for providing unparalleled coaching and training in pre-requisite tests such as TOEFL, GRE, SAT, GMAT & IELTS. Its core activity lies in assisting students to make the right choice with regard to higher education overseas. It has more than 73 offices all over the world and has placed more than 75,000 students in universities abroad. Its reach extends to five continents and universities in most countries like the USA, UK, Canada, Ireland, Singapore, Malaysia, Nepal, Kenya, Tanzania, Uganda, France and Spain. VIL is also into software development and services, merchant export-import & trading and also offers E-Learning through satellite enabled virtual class rooms.

In brief, VIL offers comprehensive counselling with regard to country of study, programme, tuition fees, location, pre-requisite tests and admission requirements according to the candidate's profile. Besides, it also explains about education systems in different countries, importance of the documentation, Visa procedures, financial requirements, scholarship chances, programme curriculum, living conditions, career options in the country etc. Coaching India, the training division of VIL with 40 centres across India successfully trains 30,000 students per annum for pre-requisites tests with very scientific standards. The company has a banking desk, which assists students in securing educational loans for pursuing their studies abroad. The students can enroll themselves for a step-by-step Visa mock interview to boost their confidence in facing the consulate officer and presenting themselves in an accurate mode. Travel assistance, foreign exchange assistance, student Insurance plans etc are the post visa services provided by the company. Meanwhile, VIL is on the anvil of launching ‘Visu Testing Service’, which is computer generated automation software that enables a student to test his/her strengths and weaknesses in a given area at any given point of time. Moreover, it is setting up a international boarding school from 5th to 12th grade in Hyderabad aimed at preparing students on par with world standards with state-of-the-art campuses, modern amenities equipped with latest technologies and inculcate contemporary skill sets, imbibe self confidence with wide international exposure. 30 acres land for the project has already been already acquired on the Mumbai - Hyderabad highway. Besides, a subsidiary is being set up in Dubai to improve the scale of software operations in foreign countries. VIL is also on the look out for acquiring a foreign company/firm to increase competency and economies of scale.

To fund its Hyderabad school project and its other growth plans, VIL raised around Rs.15 cr. through the GDR route last year to be converted into Rs.2.175 cr. equity at Rs.6.90 per share. Earlier in 2005, it raised capital by allotting 35 lakh equity shares. Thus its current equity stands at Rs.35.33 cr. compared to Rs.10.08 cr. in March 2005. Further, it has allotted 40 lakh warrants and has taken the approval to raise Rs.110 cr. more by allotting not more than Rs.5 cr. equity shares. That means a massive equity dilution can take place in future. However for FY07, VIL is expected to report total revenue of Rs.95 cr. with PAT of Rs.12.50 cr. This translates into EPS of Rs.3.50 on its current equity of Rs.35.33 cr. For FY08, its revenue can rise up to Rs.125 cr. and profit maybe Rs.16.50 cr. On its diluted equity of Rs.39.33 cr., the FY08 EPS works out to more than Rs.4. Hence at the current market price, the VIL scrip is available at around 3 times FY08E earnings. Although it’s a dividend paying company, there are promoter concerns as they hold only 3% stake. Moreover, the management hasn’t clarified at what rate they had made preferential allotment and also the GDR conversion price is very low. But since the share is trading near its 52-week low of Rs.12, investors can expect 30-50% appreciation in a year’s time.