List of Best Education Stocks in India 2024

Any nation’s ability to develop depends on its workforce, which can be achieved through education and training. Previously, the only learning options were offline, but as internet services have become more widely available, online learning has taken over the education sector. 

In this blog post, we’ll give you an overview of the Indian education industry and its top companies.

Overview of the Education Industry

Any nation’s ability to maintain a skilled labor force largely depends on its educational system, and India’s education system is designed to meet the changing demands of the industry. The businesses in this industry benefit from the growing demand for high-quality education delivered through various channels, including online and offline. The companies provide infrastructure for education, online learning platforms, tutorial services, etc. The Indian education industry is estimated to be valued at USD 225 billion by 2025 and USD 313 billion by 2030.

Top Education Stocks Based on Market Capitalization

The Top Education Stocks in 2024 are:

The education stocks have been listed in descending order based on their market capitalization in the table below:

Best Education Stocks in India Based on Market Capitalization – An Overview

A brief overview of the best education stocks in India is given below:

1. Veranda Learning Solutions Limited

Kalpathi S. Suresh founded Andromeda Edutech Private Limited in 2018. The business rebranded itself as Veranda Learning Solutions Private Limited in 2020. The company’s primary goal is to offer an educational platform that can meet the demands of students from all backgrounds. The company used to coach students offline, but because of COVID-19, it has changed its focus to online learning. In 2022, the corporation was listed on the Indian Stock Exchange after realizing it needed funds to expand. Classes are available for competitive exams like UPSC, SSC, Banking, etc. The company’s headquarters is in Chennai.

2. NIIT Limited

In 1981, Rajendra S. Pawar and Vijay K. Thadani established the company. When the company first started, computer-based education was offered before computers were widely used in India. Later, in 2000, the company started providing training services to large companies to optimize their training budget. The company has many training centers spread across the country. It has its headquarters in Gurgaon. 

3. Aptech Limited

The company was started in 1986 as an IT education company. Later, in 1990, the company expanded its offering to multimedia and animation by establishing a new brand named Arena Animation. In 2003, the business became the first company in India to be certified ISO 9001:2000 in the education and support services sector. It has its headquarters in Mumbai. 

4. Career Point Limited

The business was founded in 1993 by IIT Delhi alumnus Pramod Maheshwari as a little coaching facility in Kota. Its goal is to assist pupils in passing entrance tests. The business became well-known as a top coaching institute in the 1990s and 2000s by opening numerous coaching centers nationwide. In 2010, the company went public on the Indian Stock Exchange. Its main office is located in Kota, Rajasthan. 

5. Drone Destination Limited

The company was established in 2019 to provide drone services and training in India. The DGCA has permitted them to offer drone pilot certification and skill development courses. In addition, they provide drone services to various industries, such as logistics, infrastructure, and agriculture. In October 2022, it partnered with the National Skill Development Corporation (NSDC) as its first Drone Training partner. The company’s main office is located in New Delhi.  

Top Education Stocks Based on 1-Year Return

The education stocks have been listed in descending order based on their 1-year returns in the table below:

Best Education Stocks in India Based on 1-Year Return – An Overview

The best Education stocks according to 1-Year return are given below, along with a brief overview of the services they provide:

LCC Infotech Ltd.

The company was founded in 1980 when computer education became popular in India. The company offers a computer training program for those who want to learn computers and gain IT abilities. In 1990, it emerged as a competitor for firms like NIIT and Aptech. The company’s priorities have changed to include new commercial endeavors in the past few years. Its main office is located in Kolkata. 

Zee Learn Ltd.

The business was founded in 2010 and is a part of the ESSEL Group. They began their enterprise by opening Kidzee, their first school, which flourished because of its online curriculum. Following this, the business established Mount Litera Zee School, a K–12 school, as a franchisee in several other states. The company’s headquarters is in Mumbai. 

Usha Martin Education and Solutions Ltd.

When the business was first established in 1997, it was known as Telecable Industries Limited. In 2000, the business rebranded itself as Usha Martin Infotech Limited. The company entered the education industry in 2008 and changed its name to Usha Martin Education and Solution Limited in 2009. The firm opened several K–12 institutions across the nation. The company’s main office is located in Kolkata. 

Overviews of the remaining companies have been given above.

Key Performance Indicators 

The Benefits of Investing in Education Stocks

There are various benefits of investing in education stocks, a few of which are mentioned below- 

• Growth Potential – The country’s growing population is driving up demand for education and skill development, which can only be met by businesses that offer educational services. 
• Stability – Due to its resilience during an economic downturn, this industry is regarded as one of the most stable in the whole economy. 
• Periodic Cash flows – The education sector generates steady cash flows through tuition fees, government grants, and other sources.  

Factors to Be Considered Before Investing in Education Stocks

Before making any investment in the education sector, there are various factors to be taken into consideration-

• Technology – The enterprises in this sector must incorporate new technologies in their teaching methodology and curriculum. 
• Competitions – In India, this industry is very fragmented, and some regional competitors may impact the earnings of these businesses. 
• Company’s Financials – One should carefully review the company’s financial reports, including the income statement, balance sheet, and cash flow statements, before purchasing any educational stock to determine whether the business is undervalued. 

Future of the Education Sector in India

Globally, there is a growing need for a trained workforce. For a nation to progress, its population must possess a certain level of skill, which is why educational institutions are essential. The internet and globalization have allowed people to receive education across borders, opening up new business opportunities for these companies.  

Conclusion

Finally, the country’s growing population presents enormous growth possibilities for the Indian education sector. Both online and offline learning environments are accessible in India. You can take part in this intellectual revolution by investing in the stocks of this industry, but before making any financial decisions, one must carefully weigh all the risk aspects or consult a financial advisor before investing.

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