Check Before You Invest : CL Educate Ltd

Snapshot

Q.1 Which industry/sub-sector does CL Educate Ltd belong to?

CL Educate Ltd belongs to the Miscellaneous sector, operating specifically within the Educational Institutions segment.

Q.2 Is CL Educate Ltd a good quality company?

CL Educate Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is CL Educate Ltd undervalued or overvalued?

CL Educate Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is CL Educate Ltd a good buy now?

CL Educate Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of CL Educate Ltd?

CL Educate Ltd revenue growth is 14.6% for FY-2025, which is above its 5-year CAGR of 2.94%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of CL Educate Ltd?

CL Educate Ltd Return on capital employed is 2.03% for FY-2025, which is below its 5-year historical median of 7.22%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of CL Educate Ltd?

CL Educate Ltd Return on Asset is -0.31%, which is below its 5-year historical median of 4.09%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of CL Educate Ltd?

CL Educate Ltd Return on equity is -0.71% for FY-2025, which is below its 5-year historical median of 5.43%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of CL Educate Ltd?

CL Educate Ltd Cash conversion cycle is 44 days, in line with its 5-year historical median of 44 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.57	0.62
ROE	-0.71	5.43
ROCE	2.03	7.22
Cash Conversion Cycle	44 days	44 days

Q.6 Gross Profit margin of CL Educate Ltd?

CL Educate Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.8% for FY-2025, which is below its 5-year median of 10.5%, indicating decreasing margins.

Q.7 Operating Profit Margin of CL Educate Ltd?

CL Educate Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.28% for FY-2025, which is below its 5-year median of 8.41% indicating decreasing margins.

Q.8 Net Profit Margin of CL Educate Ltd?

CL Educate Ltd Net Profit Margin is -0.54% for FY-2025, is below with its 5-year median of 5.75%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.8	10.5
Operating Profit Margin	6.28	8.41
Net Profit Margin	-0.54	5.75

Q.9 Debt to Equity ratio of CL Educate Ltd?

CL Educate Ltd Debt-to-Equity ratio is 0.89, which is above with the industry average of 0.15, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of CL Educate Ltd?

CL Educate Ltd Debt to cash flow from operations is 14.65, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of CL Educate Ltd?

Promoters hold 51.78% of the CL Educate Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of CL Educate Ltd vs industry peers?

CL Educate Ltd revenue CAGR is 2.94%, compared to the industry median CAGR of 8.82%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	14.6	8.8
Gross Profit Growth	-35.1	72.9
Operating Profit Growth	-15.4	33.2
Net Profit Growth	-111.1	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.57	0.34
ROE	-0.71	5.14
ROCE	2.03	7.23
Cash Conversion Cycle (days)	43.75	44

Valuation & price assessment

Q.1 Stock return of CL Educate Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 16.57% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	16.6%	-5.7%	-45%

Q.3 Valuation ratios of CL Educate Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	26.62	41.52
Price to Book	0.97	1.56	2.72
Price to Sales	0.48	1.37	7.92
EV to EBITDA	3.36	11.38	12.97

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