Crizac IPO analysis

Crizac IPO (initial public offering) will open for subscription on July 2, 2025, and close on July 4, 2025. Below is a breakdown of the education consultant's strengths, weaknesses and growth prospects to help investors make an informed decision. Crizac IPO in a nutshell Quality: Between FY23 and FY25, Crizac reported a three-year average ROE and ROCE of around 43 and 45 per cent, respectively. Growth: Between FY23 and FY25, its revenue and net profit grew 76 and 18 per cent per annum, respectively. Valuation: At the upper price band of Rs 245, the stock is expected to be valued at a P/E and P/B ratio of around 28 times and 8.5 times, respectively. In comparison, its listed peers trade at a median P/E and average P/B ratio of 20 times and 5 times, respectively. Overview: The number of Indian students seeking higher education overseas is on a swift rise. This trend will benefit Crizac, whose platform connects students with global institutions. However, the competitive nature of the industry and similar offerings by other established players remain a risk for the company. About Crizac Crizac is a B2B education platform, offering international student recruitment solutions to global higher education institutions. Its primary focus areas include the UK, Canada and Ireland. For FY25, the company earned 95 per cent of revenue from UK colleges with 60 per cent of total student applications coming from India. During the last three financial years, the company processed over 7.11 lakh student applications while working with over 173 global institutions of higher education. Strengths of Crizac Strong network effect: Crizac’s platform serves as a bridge between a large pool of education agents and global institutions. Agents onboard the platform and bring with them aspiring students, whom Crizac then connects to over 170 international institutions (as of FY25). With 10,362 registered agents already on the platform, every new agent or institution enhances its value for the others, creating a self-reinforcing network effect. Weaknesses of Crizac Non-exclusive agreements: The company works with agents on a non-exclusive basis. This means their agents can directly collaborate with global i