Check Before You Invest : Veranda Learning Solutions Ltd

Snapshot

Q.1 Which industry/sub-sector does Veranda Learning Solutions Ltd belong to?

Veranda Learning Solutions Ltd belongs to the Miscellaneous sector, operating specifically within the Educational Institutions segment.

Q.2 Is Veranda Learning Solutions Ltd a good quality company?

Veranda Learning Solutions Ltd is a weak quality company, based on a inconsistent 5-year financial track record.

Q.3 Is Veranda Learning Solutions Ltd undervalued or overvalued?

Veranda Learning Solutions Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Veranda Learning Solutions Ltd a good buy now?

Veranda Learning Solutions Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Return on capital employed (ROCE) of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Return on capital employed is 3.26% for FY-2025, which is above its 5-year historical median of 2.51%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Return on Asset is -0.38%, which is in line with its 5-year historical median of -0.38%, indicating stable asset utilization efficiency.

Q.3 Return on Equity (ROE) of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Return on equity is -0.58% for FY-2025, which is in line with its 5-year historical median of -0.58%, indicating the business is making similar use of its shareholders capital.

Q.4 Cash conversion cycle of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Cash conversion cycle is 60 days, above its 5-year historical median of 52 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.04	0.06
ROE	-0.58	-0.58
ROCE	3.26	2.51
Cash Conversion Cycle	60 days	52 days

Q.5 Gross Profit margin of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.1% for FY-2025, which is in line with its 5-year median of 15.1%, indicating stable margins.

Q.6 Operating Profit Margin of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -30.81% for FY-2025, which is above its 5-year median of -39.41% indicating increasing margins.

Q.7 Net Profit Margin of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Net Profit Margin is -9.36% for FY-2025, is in line with with its 5-year median of -9.36%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.1	15.1
Operating Profit Margin	-30.81	-39.41
Net Profit Margin	-9.36	-9.36

Q.8 Debt to Equity ratio of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Debt-to-Equity ratio is 0.14, which is lower with the industry average of 0.15, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Veranda Learning Solutions Ltd?

Veranda Learning Solutions Ltd Debt to cash flow from operations is 3.29, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Veranda Learning Solutions Ltd?

Promoters hold 33.80% of the Veranda Learning Solutions Ltd, with 30.45% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Veranda Learning Solutions Ltd vs industry peers?

Veranda Learning Solutions Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 8.82%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	8.8
Gross Profit Growth	-73.9	72.9
Operating Profit Growth	-211.1	33.2
Net Profit Growth	-117.4	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.04	0.34
ROE	-0.58	5.14
ROCE	3.26	7.23
Cash Conversion Cycle (days)	60.3	44

Valuation & price assessment

Q.1 Stock return of Veranda Learning Solutions Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 7.79% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	7.8%	3%

Q.3 Valuation ratios of Veranda Learning 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	198.6	142.24	41.52
Price to Book	1.61	2.57	2.72
Price to Sales	56.81	53.43	7.92
EV to EBITDA	34.8	46.45	12.97

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