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Educomp Solutions Ltd Stock Analysis

Small Cap
Evaluated by 2595 users | BSE: 532696 | NSE: EDUCOMP |
IT - Education
Educomp Solution, established in 1994, offers diversified education solutions. It is the largest education company in India. It provides learning solutions to schools, governments, teachers, students and parents. It has research and development center located at Noida that creates...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16TTM
Return on Capital Employed 17.86%16.23%16.94%17.42%21.02%11.29%0.89%-4.48%-11.69%-5.07%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1072625018321,0211,077733282198201177
Y-o-Y Gr. Rt.-145.9%91.2%66.1%22.6%5.5%-31.9%-61.5%-29.8%1.4%-
Adjusted EPS (Rs.) 3.627.9414.5422.5340.3723.08-5.82-20.38-44.94-25.87-38.83
Y-o-Y Gr. Rt.-119.3%83.1%55%79.2%-42.8%-125.2%NANANA-
Book Value per Share (Rs.) 14.3432.347.38127.28168.16186.38160.89136.0239.3210.640.00
Adjusted Net Profit 28.968.4126214386222-71.2-250-550-317-475
Net Op. Cash Flow (Rs. Cr.) 1868.185288327158-290-756-300142-
Debt to Cash Flow from Ops 6.915.396.152.052.056.01-3.9-2.62-8.3917.93-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Educomp Solutions Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.3%-27.8%-35%1.4%
Adjusted EPS -224.4%-191.5%NANA
Book Value per Share -3.3-42.4-59.6-72.9
Share Price -35.7% -25.6% 5.9% -4.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16TTM
Return on Equity (%) 28.2334.0935.3625.9827.0712.9-3.71-13.48-50.82-102.27-729.89
Operating Profit Margin (%) 48.0348.1954.5756.1449.2838.1411.3-29.98-21.79-29.53-36.86
Net Profit Margin (%) 27.1526.1125.0825.7337.7920.59-9.72-88.39-277.69-157.63-267.9
Debt to Equity 1.091.321.280.490.420.530.571.195.2219.48-
Working Capital Days 1831672342492823727502,5363,4622,6002151
Cash Conversion Cycle 112691111361001364291,8982,8312,187-
Loading price chart...
Entity Percentage Holding
Promoters 44.78%
Institutions 0.82%
Non-Institutions 54.39%
Pledged *94.4394.4194.4194.4194.4194.4194.4194.4194.4194.41
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

Educomp Solutions Ltd's earnings have declined by -191.5%, whereas share price has declined -25.6% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Educomp Solutions Ltd share price has declined -35.5% annually (CAGR) over the past ten years.

Data is not available for this company.

Educomp Solution, established in 1994, offers diversified education solutions. It is the largest education company in India. It provides learning solutions to schools, governments, teachers, students and parents. It has research and development center located at Noida that creates quality products and services. The solution is based on education principles that help them to design

Educomp Solution, established in 1994, offers diversified education solutions. It is the largest education company in India. It provides learning solutions to schools, governments, teachers, students and parents. It has research and development center located at Noida that creates quality products and services. The solution is based on education principles that help them to design education systems.

It caters to around 19,000 schools and 9.4 million learners and educators across the world. Educomp has subsidiaries namely EuroKids, Ask n learn, Learning.com, Savvica, authorgen.com, edusmart.com and threebrix.com.

In order to provide quality products and services it has partnered with Gaja Capital Partners, Learning Leadership Foundation (LLF), Microsoft, Intel, Raffles, Wipro are among others.

It has 27 offices across the world in one in Canada, 20 in India, 2 In Singapore, 1 in Sri Lanka and 3 in US

In April 2009, Educomp Solutions entered into joint venture with Lavasa Corporation with the aim of jointly facilitating independent trusts to set up four educational institutes at Lavasa. Also the company inked agreement to open Raffles International College in India through Joint Venture with Raffles Education Corporation the largest private education company in Asia-pacific region. Educomp has acquired 51% in Takshila Management Services. It is a specialist in setting up schools in tier-II and tier-III cities across India

In June 2009, Educomp Solutions announce Joint Venture with Pearson, the international education and Information Company offering skills training in India to support vocational learning in India.

In August 2010, Educomp Solutions has picked up a strategic stake in leading engineering test preparation player Vidya Mandir Classes (VMC) for close to Rs 34 crore.

On October 2010, Educomp's subsidiary- Learning.com acquired Houghton Mifflin Harcourt's (HMH's) Connected Tech Texas Technology Applications (Tech Apps), Adoption contracts and an exclusive license to provide the Connected Tech - Texas (CTT) product to Texas Tech Apps Adoption customers. It also entered into an agreement with Chinese firm China Distance Education Holdings (CDEL), through its Singapore- based subsidiary AsknLearn.

In January 2011, Educomp Solutions and Zeebo Inc have announced the proposed formation of a new JV in India and have made public their plans to introduce a version of Zeebo`s 3G connected education and entertainment system especially for the Indian market in 2011.

In February 2011, Educomp Solutions picked up a majority stake in the leading test preparation company Gateforum Educational Services.

Products and Services

It has developed various products that cater from kindergarten to twelfth grade. It has created products namely Smart Class, Quest, Mathguru, WiZiQ, Learning Hour, Singapore Learning and Magikeys.

In service category, it provides professional development, school developments, computer education programs and creating learning system for schools.

Educomp is India’s no.1 K-12 education company providing wide range of e-solutions in education space.

It has a vision to be amongst the top five K-12 companies and to reach 10 million learners by 2010.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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