Educomp Solutions Ltd - Stock Valuation and Financial Performance

BSE: 532696 | NSE: EDUCOMP | IT - Education | Small Cap

Educomp Solutions Share Price

3.12 -0.15 -4.59%
as on 25-Apr'24 16:01

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Educomp Solutions stock performance -

mw4me loader
P/E Ratio (SA):
0.00
Market Cap:
38.2 Cr.
52-wk low:
1.5
52-wk high:
4.7

Is Educomp Solutions Ltd an attractive stock to invest in?

1. Is Educomp Solutions Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Educomp Solutions Ltd is a below average quality company.

2. Is Educomp Solutions Ltd undervalued or overvalued?

The key valuation ratios of Educomp Solutions Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.

3. Is Educomp Solutions Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Educomp Solutions Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Educomp Solutions:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Educomp Solutions Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -4.5%-11.7%-5.1%-11.7%-226.5%37.8%38%8.9%5.5%7.7%-
Value Creation
Index
-1.3-1.8-1.4NANANANANANANA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 28219820117764.519.39.711.445
Sales YoY Gr.--29.8%1.4%-11.7%-63.7%-70%-50%-90%42.3%188.4%-
Adj EPS -20.4-44.9-25.9-37.8-191-6.1-8.9-2.7-1.8-2.6-1.4
YoY Gr.-NANANANANANANANANA-
BVPS (₹) 13639.310.6-23.2-215.3-224.1-237-237.1-240.6-247.2-248.6
Adj Net
Profit
-250-550-317-463-2,339-75.1-109-33.1-22.5-32.4-17
Cash Flow from Ops. -756-30014274.5-15.4-6.61.5-9.3-2.6-1.8-
Debt/CF from Ops. -2.6-8.417.933.2-161-3801767-273.9-986.9-1473.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -37.7%-42.7%-25.6%188.4%
Adj EPS NANANANA
BVPS-206.9%NANANA
Share Price -19.4% 9.3% 8.8% 53.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-13.5-50.8-102.3628.7160.62.83.91.10.81.10.6
Op. Profit
Mgn %
-30-21.8-29.5-36.9-1277.6-234.4-798.1-2182.8-810.9-189.1-114.9
Net Profit
Mgn %
-88.4-277.7-157.6-260.7-3629.6-388.7-1126.8-3422.2-1628.1-812.5-342.7
Debt to
Equity
1.25.219.5-8.7-0.9-0.9-0.9-0.9-0.9-0.9-
Working Cap
Days
2,5363,4622,6002,5524,1985,0367,74756,74735,48411,8534,969
Cash Conv.
Cycle
1,8982,8312,1872,0863,1403,6293,32739,96619,264-1,770-1,07,146

Recent Performance Summary

Sales growth is good in last 4 quarters at 54.98%

Return on Equity has declined versus last 3 years average to 0.50%

Sales growth has been subdued in last 3 years -25.59%

Latest Financials - Educomp Solutions Ltd.

Standalone Consolidated
TTM EPS (₹) -1.4 -6.5
TTM Sales (₹ Cr.) 4.9 4
BVPS (₹.) -248.6 -246.4
Reserves (₹ Cr.) -3,069 -3,042
P/BV -0.01 -0.01
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 1.49 / 4.74
All Time Low / High (₹) 0.76 / 1130.00
Market Cap (₹ Cr.) 38.2
Equity (₹ Cr.) 24.5
Face Value (₹) 2
Industry PE 37.4

Management X-Ray of Educomp Solutions:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *94.4194.4194.4194.4194.4194.4194.4194.4194.4194.41
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Educomp Solutions

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales282.30198.18200.99177.4864.4519.339.660.971.383.98
Operating Expenses 386.50258.69285.31258.30902.18107.35147.5047.1142.6579.91
Manufacturing Costs20.1921.0924.6928.5529.0718.392.991.371.341.37
Material Costs117.6623.3738.7741.935.941.110.0300.040
Employee Cost 142.42128.86115111.6937.3314.9672.172.122.41
Other Costs 106.2485.38106.8476.13829.8572.89137.4843.5739.1576.13
Operating Profit -104.21-60.51-84.32-80.83-837.73-88.02-137.84-46.14-41.27-75.93
Operating Profit Margin (%) -36.9%-30.5%-42.0%-45.5%-1,299.9%-455.0%-1,426.7%-4,776.6%-2,988.6%-1,906.8%
Other Income 34.8834.0322.1037.977.533.1810.512.641.11
Interest 138.52229.70247.23253.7046.213.193.644.024.485.10
Depreciation 54.0847.8340.0727.2214.7811.443.180.940.420.31
Exceptional Items -70-861.42-12.91-151.79-1,479.73-5.56-7.70000
Profit Before Tax -331.93-1,165.44-362.43-475.56-2,370.92-105.03-151.37-50.60-43.54-80.23
Tax -19.700-19.090000000
Profit After Tax -312.23-1,165.44-343.34-475.56-2,370.92-105.03-151.37-50.60-43.54-80.23
PAT Margin (%) -110.0%-588.0%-170.0%-268.0%-3,678.9%-543.0%-1,566.8%-5,237.9%-3,152.5%-2,014.9%
Adjusted EPS (₹)-25.5-95.2-28.0-38.8-193.0-8.6-12.4-4.1-3.6-6.6
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,665.45481.57130.24-283.76-2,636.11-2,744.69-2,901.95-2,903.24-2,946.80-3,027.03
Share Capital 24.4924.4924.4924.4924.4924.4924.4924.4924.4924.49
Reserves 1,640.96457.08105.75-308.26-2,660.60-2,769.18-2,926.44-2,927.74-2,971.29-3,051.52
Minority Interest0000000000
Debt1,928.142,364.041,982.84138.75141.85144.87148.41152.33156.79161.88
Long Term Debt1,731.562,153.331,884.6918.8721.5124.5227.9531.8736.3341.42
Short Term Debt196.58210.7098.15119.89120.35120.35120.46120.46120.46120.46
Trade Payables156.5289.2485.11132.70125.63132.26137.46135.21139.56147.50
Others Liabilities 257.67481.80899.342,800.432,793.692,828.782,883.772,863.372,887.912,948.22
Total Liabilities 4,007.783,416.643,097.532,788.12425.06361.22267.70247.67237.47230.57

Fixed Assets

Gross Block365.08395.60307.8898.0798.1098.1094.8494.8995.0995.19
Accumulated Depreciation259.54311.80245.3959.6174.3985.8288.4189.3589.7590.06
Net Fixed Assets105.5583.8062.4938.4623.7212.286.435.545.345.13
CWIP 8.563.872.202.08200000
Investments 1,693.841,693.841,713.201,511.3491.8586.2881.3281.3281.3281.32
Inventories56.6325.36126.811.440.270.250.250.200.20
Trade Receivables1,846.831,356.851,166.241,023.64266.04226.14146.29123.45118.92118.63
Cash Equivalents 18.9256.9734.4139.8921.3515.3817.1223.2619.8416.46
Others Assets277.45195.95106.99165.9118.6620.8616.3013.8511.858.83
Total Assets 4,007.783,416.643,097.532,788.12425.06361.22267.70247.67237.47230.57

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -756.34-299.71141.5674.52-15.39-6.621.46-9.34-2.62-1.79
PBT -331.93-1,165.44-362.43-475.56-2,370.92-105.03-151.37-50.60-43.54-80.23
Adjustment 296.181,092.28320.20418.072,340.1476.36144.1342.2735.1174.62
Changes in Working Capital -713.79-218.03175.4128.789.3423.513.81-2.842.683.78
Tax Paid -6.28-2.6121.873.236.04-1.464.881.833.130.04
Cash Flow From Investing Activity 58.3716.9714.043.371.190.160.790.262.410.61
Capex -26.45-29.11-1.34-13.77-0.040-0.06-0.06-0.21-0.11
Net Investments -1.45014.990000000
Others 86.2746.080.3917.141.220.160.860.322.620.72
Cash Flow From Financing Activity 697.93320.09-178.08-70.91-5.83-0.030000
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 929.83483.38-20.32-30.72000000
Interest Paid -111.60-190.32-175.29-64.89-6.240-0.11000
Dividend Paid -0.58-0.010-0.04-0.05-0.030000
Others -119.7227.0417.5324.740.4600.11000
Net Cash Flow -0.0437.35-22.476.97-20.04-6.492.25-9.07-0.21-1.18
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-17.18-108.56-112.24N/AN/AN/AN/AN/AN/AN/A
ROCE (%)-5.68-28.08-4.06N/AN/AN/AN/AN/AN/AN/A
Asset Turnover Ratio0.070.050.060.060.040.050.0300.010.02
PAT to CFO Conversion(x)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Working Capital Days
Receivable Days2,0372,9502,2912,2523,6524,6477,035000
Inventory Days68763419231610935918
Payable Days5761,8608129487,94100000

Educomp Solutions Ltd Stock News

Educomp Solutions Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Educomp Solutions on 25-Apr-2024 16:01 is ₹3.12.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 25-Apr-2024 16:01 the market cap of Educomp Solutions stood at ₹38.21.
The latest P/E ratio of Educomp Solutions as of 25-Apr-2024 16:01 is 0.00.
The latest P/B ratio of Educomp Solutions as of 25-Apr-2024 16:01 is -0.01.
The 52-week high of Educomp Solutions is ₹4.74 and the 52-week low is ₹1.49.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Educomp Solutions is ₹4.86 ( Cr.) .

About Educomp Solutions Ltd

Educomp Solution, established in 1994, offers diversified education solutions. It is the largest education company in India. It provides learning solutions to schools, governments, teachers, students and parents. It has research and development center located at Noida that creates quality products and services. The solution is based on education principles that help them to design education systems.

It caters to around 19,000 schools and 9.4 million learners and educators across the world. Educomp has subsidiaries namely EuroKids, Ask n learn, Learning.com, Savvica, authorgen.com, edusmart.com and threebrix.com.

In order to provide quality products and services it has partnered with Gaja Capital Partners, Learning Leadership Foundation (LLF), Microsoft, Intel, Raffles, Wipro are among others.

It has 27 offices across the world in one in Canada, 20 in India, 2 In Singapore, 1 in Sri Lanka and 3 in US

In April 2009, Educomp Solutions entered into joint venture with Lavasa Corporation with the aim of jointly facilitating independent trusts to set up four educational institutes at Lavasa. Also the company inked agreement to open Raffles International College in India through Joint Venture with Raffles Education Corporation the largest private education company in Asia-pacific region. Educomp has acquired 51% in Takshila Management Services. It is a specialist in setting up schools in tier-II and tier-III cities across India

In June 2009, Educomp Solutions announce Joint Venture with Pearson, the international education and Information Company offering skills training in India to support vocational learning in India.

In August 2010, Educomp Solutions has picked up a strategic stake in leading engineering test preparation player Vidya Mandir Classes (VMC) for close to Rs 34 crore.

On October 2010, Educomp's subsidiary- Learning.com acquired Houghton Mifflin Harcourt's (HMH's) Connected Tech Texas Technology Applications (Tech Apps), Adoption contracts and an exclusive license to provide the Connected Tech - Texas (CTT) product to Texas Tech Apps Adoption customers. It also entered into an agreement with Chinese firm China Distance Education Holdings (CDEL), through its Singapore- based subsidiary AsknLearn.

In January 2011, Educomp Solutions and Zeebo Inc have announced the proposed formation of a new JV in India and have made public their plans to introduce a version of Zeebo`s 3G connected education and entertainment system especially for the Indian market in 2011.

In February 2011, Educomp Solutions picked up a majority stake in the leading test preparation company Gateforum Educational Services.

Products and Services

It has developed various products that cater from kindergarten to twelfth grade. It has created products namely Smart Class, Quest, Mathguru, WiZiQ, Learning Hour, Singapore Learning and Magikeys.

In service category, it provides professional development, school developments, computer education programs and creating learning system for schools.

Educomp is India’s no.1 K-12 education company providing wide range of e-solutions in education space.

It has a vision to be amongst the top five K-12 companies and to reach 10 million learners by 2010.

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