Rs 90 to Rs 826: This smallcap education services company scales a fresh 52-week high

The stock has hit the upper circuit of 5% today.

Shanti Educational Initiatives is engaged in the business of providing education services and activities. Over the last three months, the company has returned 818.33% to investors. The company's share price was Rs 90 on December 16, 2021, and it has boosted investor wealth by more than 9 times since then.

The company recently released its Q3FY22 results. Revenue increased by 463.13% YoY to Rs 1.01 crore in Q3FY22, up from Rs 0.18 crore in Q3FY21. The top line increased by 25.22% sequentially. PBIDT (Ex OI) was reported at Rs -0.47 crore, up 40.13% year over year, and the comparable margin was recorded at -46.94%, up 39440 basis points year over year. PAT came in at Rs -0.63 crore, up 47.39% from Rs -1.19 crore in the previous fiscal year's same quarter. In Q3FY22, the PAT margin increased to -62.32%, up from -667.04% in Q3FY21.

Despite losses in two of the three quarters of the current financial year 2021-22, the smallcap stock with a market value of Rs 1,267.3 crore has seen excellent growth this year. There was no apparent rationale for the stock's tremendous demand, which drove the price to new highs.

On a year-to-date (YTD) basis, its peer business Zee Learn has achieved a negative return of 23 %. It also surpassed its competitors by a large amount, including CL Educate, Career Point, VJTF Eduservices, Virtual Global, Global Education, and MT Educare Tree House Education and Accessories.

Shanti Educational Initiatives, a subsidiary of the Ahmedabad-based Chiripal Group, was founded in 2009 and is largely focused on providing educational support services to preschools and K-12 premium category preschools in India. K-12 education refers to the education provided in the primary and secondary periods of schooling, from kindergarten to the 12th grade.

At 10:00 am on Wednesday, the stock of Shanti Educational Initiatives was seen trading at Rs 826.5, up by 5% or Rs 39.35 per share. The 52-week high of the scrip is recorded at Rs 826.5 and the 52-week low at Rs 83.05 on the BSE.