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Check Before You Invest : Zee Learn Ltd

BSE: 533287 NSE: ZEELEARN ISIN: INE565L01011
  |   Sector:  Miscellaneous   |   Industry:  Educational Institutions

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 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 Zee Learn Ltd undervalued or overvalued?
Zee Learn 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 3.46 4.21
Price to Book 1.11 1.37
Price to Sales 0.7 1.12
EV to EBITDA 3.89 5.11
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

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 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 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.3 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.4 Net Profit Margin of Zee Learn Ltd?
Zee Learn Ltd Net Profit Margin is 19.79% for FY-2025, is above 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x) 0.29 0.29
ROE (%) 41.3 3.45
ROCE (%) 29.35 7.23
Cash Conversion Cycle 30 days 15 days

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

Q.9 Debt to Equity ratio of Zee Learn Ltd?
Zee Learn Ltd Debt-to-Equity ratio is 1.22, which is above the industry average of 0.01, 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

D: Promoter shareholding and pledge status of Zee Learn Ltd?

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)

E: How does Zee Learn Ltd performance compare with that of its Peers?

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 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.4 0
Gross Profit Growth (%) 9.6 32
Operating Profit Growth (%) 3.5 25.3
Net Profit Growth (%) 8 23.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.29 0.34
ROE (%) 41.3 5.14
ROCE (%) 29.35 7.23
Cash Conversion Cycle (days) 30.21 15

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 -14.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-14.1% -11.1% 20.8% 3.4%
Q.2 Valuation ratios of Zee Learn Ltd vs historical?
The current P/E ratio of 3.46 is lower than its historical median of 4.21, indicating that the stock is trading below 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 3.46 4.21 41.45
Price to Book 1.11 1.37 2.72
Price to Sales 0.7 1.12 7.89
EV to EBITDA 3.89 5.11 12.98

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