Education Related Stocks in India

Education is not only an important segment when we talk about economic growth or government policies but it is also an important part of the stock market. This is mainly because this sector has a huge social impact, provides good long-term returns, and is always supported by the government.

 

Every year during the budget, the government allocates a substantial amount for this sector. It provides new schemes for the development of the education sector as it is the driving force for a developing nation like India with such a huge young population. This is why education stocks in India are now considered a lucrative investment opportunity by many investors.

 

 

Overview of the Indian Education sector

 India’s demographic dividend is one of the country’s biggest assets as we have one of the world’s biggest younger populations which means that more people will get educated and join the workforce every year. 

 

To put it into perspective, the Indian education sector was expected to reach 225 billion US dollars and Ed-tech will play an important role in India’s education sector growth story as its sales are also expected to touch the 10 billion USD mark.

 

With complete stock market course learn to predict the market movements.

 

 

Top Education stocks to invest in 2024

Here is the list of top Indian stocks in the education sector where you can invest to gain maximum returns: But before investing in these stock you must need to know the important ratios in the stock market.

Company Name	Last Price	52 wk High	52 wk Low	Market Cap (Rs. cr)
Shanti Educational Initiatives Ltd.	117.5	156.7	52.01	1894
NIIT	191	203	82	2585
Veranda Learning Solutions	349	352	135	2491
Career Point	487	569	182	886
Global Education	206	382	164	419

1) Shanti Educational Initiatives Limited

Shanti Educational Initiatives is a prominent name when it comes to providing educational services across the country. It was started by the Chiripal Group based in Ahmedabad. The group has 3 educational units under this initiative namely: 
1.    Shanti Asiatic School (SAS)
2.    Shanti Juniors 
3.    Shanti’s Hopskotch preschool

The company offers various services such as planning, establishing, running, managing, and transforming educational projects for K 12 Schools & Pre-Schools. The company also has a business school based in Ahmedabad and has a presence in various states of India such as Gujarat, Rajasthan, Bihar, Maharashtra, etc.

 

2) NIIT

NIIT was incorporated in 1981 to cater to the needs of the IT industry and today the NIIT group is an established Indian IT services company that emphasizes providing skill development solutions to individuals, businesses, and educational institutions. 

Specializing in providing exceptional learning solutions, NIIT has expanded its businesses in over 30 countries and the group consists of the following companies:  NIIT Limited (NIIT) and NIIT Learning Systems Limited (NIIT MTS) which aims at offering various learning and career accelerated programs related to the banking and technology sectors.

 

 

3) Veranda Learning Solutions

Veranda Learning Solutions is one of the top Indian education providers offering a diverse range of courses to fulfill the needs of various learners. Established in 2018, they provide flexible options to learn to students including online, hybrid, and offline. 

The veranda has something to offer for everyone whether you're a student, a professional, or a company looking for training. Their courses provide training covering major competitive exams and are also best suited for everyone who wants to upskill or reskill themselves. 

 

 

4) Career Point

Since its inception in 1993, Career Point has become a significant name in the Indian educational sector. Known for its quality education, it is well-known for its academic prowess and catering to the needs of students across all stages from Kindergarten to the PhD level.

The company is renowned for providing a diverse range of educational services to both regulated and non-regulated sectors of education which consists of preschool, K-12 school education, test preparation, higher education, e-learning, and vocational education. Its three main educational divisions are Education & Related Activities, Financing and Infrastructure.

 

5) Global Education

Global Education is one of India's leading educational institutions that provides various academic courses and programs. The company is known for providing high-quality education in various streams such as Engineering, Management, and Arts. 

The company focuses on nurturing student’s intellectual skills, forecasting thinking ability, and building them for a successful career. The company has provided a tremendous one-year return of 245% in 2023.

 

 

Changing the picture of the Indian education industry

In today’s urbanized world, the trend of dual-income nuclear families is increasing especially in urban areas which has given rise to the demand for more preschools and childcare services. In the rural areas, Anganwadi centres take care of this need of rural people. 

As the income level of the middle class is increasing and more Indians are making a shift from the middle class to a higher middle class, the demand for private school education and private tuition is increasing because of better infrastructure, better emphasis on holistic development, and accountability. 

Also, during COVID-19, many ed-tech platforms made in-roads in the Indian education ecosystem and made a place for themselves. These economic and technological shifts have transformed the Indian education sector and paved the way for new entrants which has made it more competitive than ever.

 

 

Things to keep in mind before investing in Indian Education sector

Investing in education stocks in India can have its upsides and downsides, therefore you need to take care of the following things before you put your hard earned money in them:

●    Financial Standing

As a prudent investor, you need to assess the financial performance of the companies in the education sector. Sales revenue, profit margins, and investment returns are some of the important metrics you can look at before picking up an education stock in your portfolio.

●    Assess future scope

As an investor, you should be able to assess the current and predict the future market trend of the sector you want to invest in. Take into consideration factors such as the number of people learning remotely, and upcoming technological advancements in the sector. Also, factor in the laws and technological penetration to rural areas in the country.

●    Policy framework

There is a strict regulatory framework around the education sector by the government and therefore it becomes necessary to monitor the political and regulatory policies governing the education sector.

●    Role of Technology

Technology plays an integral role in the majority sector, however, in recent times it has transformed the way the education sector functions. Therefore, it is important to bet on those companies that can withstand the technological changes and move with it.