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Check Before You Invest : MT Educare Ltd

BSE: 534312 NSE: MTEDUCARE ISIN: INE472M01018
  |   Sector:  Miscellaneous   |   Industry:  Educational Institutions

Snapshot

Q.1 Which industry/sub-sector does MT Educare Ltd belong to?
MT Educare Ltd belongs to the Miscellaneous sector, operating specifically within the Educational Institutions segment.
Q.2 Is MT Educare Ltd a good quality company?
MT Educare Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is MT Educare Ltd undervalued or overvalued?
MT Educare Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book -1.5 0.52
Price to Sales 0.29 0.50
EV to EBITDA 19.13 -4.59
Q.4 Is MT Educare Ltd a good buy now?
MT Educare 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

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of MT Educare Ltd?
MT Educare Ltd revenue growth is 6.4% for FY-2025, which is above its 5-year CAGR of -24.49%, indicating faster growth.

Q.2 Gross Profit margin of MT Educare Ltd?
MT Educare Ltd Gross profit margin which is the profit after deduction of direct costs, is -15% for FY-2025, which is in line with its 5-year median of -15%, indicating stable margins.

Q.3 Operating Profit Margin of MT Educare Ltd?
MT Educare Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2.49% for FY-2025, which is above its 5-year median of -17.82% indicating increasing margins.

Q.4 Net Profit Margin of MT Educare Ltd?
MT Educare Ltd Net Profit Margin is -61.54% for FY-2025, is below its 5-year median of -58.42%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -15 -15
Operating Profit Margin (%) -2.49 -17.82
Net Profit Margin (%) -61.54 -58.42

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of MT Educare Ltd?
MT Educare Ltd Return on Asset is -14.98%, which is below its 5-year historical median of -12.75%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of MT Educare Ltd?
MT Educare Ltd Return on capital employed is -4.85% for FY-2025, which is above its 5-year historical median of -5.64%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of MT Educare Ltd?
MT Educare Ltd Return on equity is -224.38% for FY-2025, which is below its 5-year historical median of -64.12%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of MT Educare Ltd?
MT Educare Ltd Cash conversion cycle is -400 days, below its 5-year historical median of -279 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.3 0.3
ROE (%) -224.38 -64.12
ROCE (%) -4.85 -5.64
Cash Conversion Cycle -400 days -279 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of MT Educare Ltd?
MT Educare Ltd Debt-to-Equity ratio is -70.52, which is lower the industry average of 0.01, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of MT Educare Ltd?
MT Educare Ltd Debt to cash flow from operations is -152.87, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of MT Educare Ltd?

Q.1 Promoter shareholding and pledge status of MT Educare Ltd?
Promoters hold 59.12% of the MT Educare Ltd, with 50.74% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does MT Educare Ltd performance compare with that of its Peers?

Q.1 Revenue growth of MT Educare Ltd vs industry peers?
MT Educare Ltd revenue CAGR is -24.49%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 6.4 0
Gross Profit Growth (%) 0 32
Operating Profit Growth (%) 0 25.3
Net Profit Growth (%) 0 23.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.3 0.34
ROE (%) -224.38 5.14
ROCE (%) -4.85 7.23
Cash Conversion Cycle (days) -400.48 15

Valuation & price assessment

Q.1 Stock return of MT Educare Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -37.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-37.8% -25.9% -30.4% -32%
Q.2 Valuation ratios of MT Educare Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 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 - - 41.45
Price to Book -1.5 0.52 2.72
Price to Sales 0.29 0.50 7.89
EV to EBITDA 19.13 -4.59 12.98

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