SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Educomp Solutions Ltd

BSE: 532696 NSE: EDUCOMP ISIN: INE216H01027
  |   Sector:  IT & ITES   |   Industry:  IT - Education

Snapshot

Q.1 Which industry/sub-sector does Educomp Solutions Ltd belong to?
Educomp Solutions Ltd belongs to the IT & ITES sector, operating specifically within the IT - Education segment.
Q.2 Is Educomp Solutions Ltd a good quality company?
Educomp Solutions Ltd is a quality company, based on a 10-year financial track record.
Q.3 Is Educomp Solutions Ltd undervalued or overvalued?
Educomp Solutions Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Educomp Solutions Ltd a good buy now?
Educomp Solutions Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Educomp Solutions Ltd?
Educomp Solutions Ltd revenue growth is -12.6% for FY-2025, which is above its 5-year CAGR of -17.82%, indicating faster growth.
Q.2 Return on Asset of Educomp Solutions Ltd?
Educomp Solutions Ltd Return on Asset is -15.03%, which is above its 5-year historical median of -17.95%, indicating improved asset utilization efficiency.
Q.3 Cash conversion cycle of Educomp Solutions Ltd?
Educomp Solutions Ltd Cash conversion cycle is -2542 days, below its 5-year historical median of -1770 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Q.4 Gross Profit margin of Educomp Solutions Ltd?
Educomp Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is -863.6% for FY-2025, which is above its 5-year median of -2007.1%, indicating increasing margins.
Q.5 Operating Profit Margin of Educomp Solutions Ltd?
Educomp Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -76.32% for FY-2025, which is above its 5-year median of -385.26% indicating increasing margins.
Q.6 Net Profit Margin of Educomp Solutions Ltd?
Educomp Solutions Ltd Net Profit Margin is -887.19% for FY-2025, is above with its 5-year median of -2014.92%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin -863.6 -2007.1
Operating Profit Margin -76.32 -385.26
Net Profit Margin -887.19 -2014.92
Q.7 Debt to Equity ratio of Educomp Solutions Ltd?
Educomp Solutions Ltd Debt-to-Equity ratio is -0.87, which is lower with the industry average of 0.05, indicating lower debt levels in the industry.
Q.8 Debt to cash flow from operations of Educomp Solutions Ltd?
Educomp Solutions Ltd Debt to cash flow from operations is -3555.52, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Educomp Solutions Ltd?
Promoters hold 44.78% of the Educomp Solutions Ltd, with 94.41% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Educomp Solutions Ltd vs industry peers?
Educomp Solutions Ltd revenue CAGR is -17.82%, compared to the industry median CAGR of -0.85%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth -12.6 -0.9
Gross Profit Growth 0 1.1
Operating Profit Growth 0 NAN
Net Profit Growth 0 -18.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 0.02 0.12
ROE - 0.21
ROCE - 0.55
Cash Conversion Cycle (days) -2542.04 28

Valuation & price assessment

Q.1 Stock return of Educomp Solutions Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -21.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
-21.9% -19.5% -22.3% -48.9%
Q.3 Valuation ratios of Educomp Solutions Ltd vs historical?
The current P/E is higher 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 - -0.71 31.71
Price to Book - -0.01 1.07
Price to Sales 3.18 5.68 6.47
EV to EBITDA -108.75 -66.17 9.26

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×