SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Tree House Education & Accessories Ltd

BSE: 533540 NSE: TREEHOUSE ISIN: INE040M01013
  |   Sector:  Miscellaneous   |   Industry:  Educational Institutions

Snapshot

Q.1 Which industry/sub-sector does Tree House Education & Accessories Ltd belong to?
Tree House Education & Accessories Ltd belongs to the Miscellaneous sector, operating specifically within the Educational Institutions segment.
Q.2 Is Tree House Education & Accessories Ltd a good quality company?
Tree House Education & Accessories 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 Tree House Education & Accessories Ltd undervalued or overvalued?
Tree House Education & Accessories 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 0.16 0.26
Price to Sales 7.33 7.90
EV to EBITDA -2.54 -9.96
Q.4 Is Tree House Education & Accessories Ltd a good buy now?
Tree House Education & Accessories 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 Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd revenue growth is -12.5% for FY-2025, which is below its 5-year CAGR of 20.97%, indicating slower growth.

Q.2 Gross Profit margin of Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Gross profit margin which is the profit after deduction of direct costs, is -34.5% for FY-2025, which is above its 5-year median of -112.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -45.92% for FY-2025, which is below its 5-year median of -13.13% indicating decreasing margins.

Q.4 Net Profit Margin of Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Net Profit Margin is -240.57% for FY-2025, is above its 5-year median of -444.25%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -34.5 -112.9
Operating Profit Margin (%) -45.92 -13.13
Net Profit Margin (%) -240.57 -444.25

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Return on Asset is -8.84%, which is in line with its 5-year historical median of -9.17%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Return on capital employed is -1.5% for FY-2025, which is above its 5-year historical median of -6.74%. 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 Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Return on equity is -8.48% for FY-2025, which is above its 5-year historical median of -9.97%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Cash conversion cycle is 945 days, in line with its 5-year historical median of 945 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 (x) 0.04 0.04
ROE (%) -8.48 -9.97
ROCE (%) -1.5 -6.74
Cash Conversion Cycle 945 days 945 days

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

Q.9 Debt to Equity ratio of Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Debt-to-Equity ratio is 0.00, 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 Tree House Education & Accessories Ltd?
Tree House Education & Accessories Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Tree House Education & Accessories Ltd?

Q.1 Promoter shareholding and pledge status of Tree House Education & Accessories Ltd?
Promoters hold 24.56% of the Tree House Education & Accessories Ltd, with 83.17% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tree House Education & Accessories Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tree House Education & Accessories Ltd vs industry peers?
Tree House Education & Accessories Ltd revenue CAGR is 20.97%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -12.5 0
Gross Profit Growth (%) -356.3 32
Operating Profit Growth (%) -1,530.4 25.3
Net Profit Growth (%) 0 23.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.04 0.34
ROE (%) -8.48 5.14
ROCE (%) -1.5 7.23
Cash Conversion Cycle (days) 944.57 15

Valuation & price assessment

Q.1 Stock return of Tree House Education & Accessories Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -21.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-21.1% -2.8% -26.6% -15.3%
Q.2 Valuation ratios of Tree House Education & Accessories 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 0.16 0.26 2.72
Price to Sales 7.33 7.90 7.89
EV to EBITDA -2.54 -9.96 12.98

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: