Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy Educomp Solutions with a target price of Rs 3250 to Rs 3425.

The company is presently trading around Rs 2910 level.

According to experts at Nirmal Bang, the stock may face some resistance around Rs 3175 levels, but after that it can even have more upward movement.

The scrip has very strong support at Rs 3020.

Today (June 18), the stock opened at Rs 2920, as against its last closure of Rs 86.80 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 74.12 and 40.73 respectively. The share price has seen a 52-week high of Rs 4020 and a low of Rs 1331 on BSE.

Educomp Solutions Ltd, on June 17, has declared that the company’s Remuneration Committee has allotted 3,580 Equity Shares of the Company to the respective employees those who exercised their conversion option under ESOP Scheme 2006 & ESOP Scheme 2007.

After allotment, the company’s paid-up capital has come up from Rs 17,30,95,770 comprising 1,73,09,577 Equity shares having face value worth Rs 10/- each to Rs 17,31,31,570 consisting of 1,73,13,157 Equity shares of the face value of Rs 10/- each.

Educomp Solutions together with FTK Technologies co-developed 'MagiKeys' -- a software-based language interface for people who would like to learn computers but are not capable of reading and writing English language.

Magikeys, is based on FTK's LooKeys software and co-branded with Educomp Solutions, which is an education solutions provider.

On June 02, Educomp Solutions announced that it is concentrating more on budget schools and management contracts than on premium schools.

Educomp Solutions, on May 13, bagged a contract worth Rs 838.20 million from Gujarat Government in order to launch computer-aided learning (CAL) in secondary and senior secondary schools in the state.

For the three month period ended March 31, 2009, Educomp Solutions’ consolidated net profit after tax was at Rs 553.58 million, while total revenue during the quarter stood at Rs 2,281.69 million.

The company announced a phenomenal rise in standalone net profit for the quarter ended March 2009. During the quarter, the profit of the company rose 73.25% to Rs 545.17 million from Rs 314.68 million in the same quarter previous year.

Net sales for the quarter surged 55.68% to Rs 1,839.04 million, while total income for the quarter jumped 54.26% to Rs 1,843.86 million, when compared with the prior year period.

It posted an EPS of Rs 31.54 per share during the quarter.