India Education Services Sector

Abstract

Behind the attractive India growth story lies a hidden truth the education system is in a sorry state. Despite adequate funds, inefficient systems have resulted in high illiteracy and a shortage of skilled staff. The government has now identified education as a focus area to maintain sustainable economic growth and the private sector is coming up with new structures to increase participation. We believe Indias education sector could see long-term secular growth with rewards for early movers. We like the K-12 field and initiate coverage with OUTPERFORM ratings on Educomp and Everonn. Our cautious view on the training market leads to an UNDERPERFORM rating on NIIT.