Check Before You Invest : Zee Learn Ltd

Snapshot

Q.1 Which industry/sub-sector does Zee Learn Ltd belong to?

Zee Learn Ltd belongs to the Miscellaneous sector, operating specifically within the Educational Institutions segment.

Q.2 Is Zee Learn Ltd a good quality company?

Zee Learn Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Zee Learn Ltd undervalued or overvalued?

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

Q.4 Is Zee Learn Ltd a good buy now?

Zee Learn 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 Revenue growth of Zee Learn Ltd?

Zee Learn Ltd revenue growth is 8.4% for FY-2025, which is above its 5-year CAGR of 7.1%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Zee Learn Ltd?

Zee Learn Ltd Return on capital employed is 29.35% for FY-2025, which is above its 5-year historical median of 7.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Zee Learn Ltd?

Zee Learn Ltd Return on Asset is 5.76%, which is above its 5-year historical median of 1.96%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Zee Learn Ltd?

Zee Learn Ltd Return on equity is 41.3% for FY-2025, which is above its 5-year historical median of 3.45%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Zee Learn Ltd?

Zee Learn Ltd Cash conversion cycle is 30 days, above its 5-year historical median of 15 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	0.29	0.29
ROE	41.3	3.45
ROCE	29.35	7.23
Cash Conversion Cycle	30 days	15 days

Q.6 Gross Profit margin of Zee Learn Ltd?

Zee Learn Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.1% for FY-2025, which is in line with its 5-year median of 29.1%, indicating stable margins.

Q.7 Operating Profit Margin of Zee Learn Ltd?

Zee Learn Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.59% for FY-2025, which is in line with its 5-year median of 33.4% indicating stable margins.

Q.8 Net Profit Margin of Zee Learn Ltd?

Zee Learn Ltd Net Profit Margin is 19.79% for FY-2025, is above with its 5-year median of 18.36%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	29.1	29.1
Operating Profit Margin	33.59	33.4
Net Profit Margin	19.79	18.36

Q.9 Debt to Equity ratio of Zee Learn Ltd?

Zee Learn Ltd Debt-to-Equity ratio is 1.22, 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 Zee Learn Ltd?

Zee Learn Ltd Debt to cash flow from operations is 2.37, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Zee Learn Ltd?

Promoters hold 15.01% of the Zee Learn Ltd, with 29.16% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Zee Learn Ltd vs industry peers?

Zee Learn Ltd revenue CAGR is 7.10%, 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	8.4	8.8
Gross Profit Growth	9.6	72.9
Operating Profit Growth	3.5	33.2
Net Profit Growth	8	15

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.29	0.34
ROE	41.3	5.14
ROCE	29.35	7.23
Cash Conversion Cycle (days)	30.21	44

Valuation & price assessment

Q.1 Stock return of Zee Learn Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -14.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-14.2%	-11.4%	18.2%	1%

Q.3 Valuation ratios of Zee Learn 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	3.22	5.68	41.52
Price to Book	1.03	1.37	2.72
Price to Sales	0.65	1.12	7.92
EV to EBITDA	3.76	5.11	12.97

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