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Tree House Education & Accessories Ltd Stock Analysis

Small Cap
Evaluated by 1045 users | BSE: 533540 | NSE: TREEHOUSE |
Educational Institutions
Tree House Education & Accessories Ltd was originally incorporated as a private limited company on July 10, 2006 under the name of Tree House Education & Accessories Private Limited. Thereafter, pursuant to a shareholders resolution, the Company became a public limited company and a...

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.
Tree House Education & Accessories Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.99%10.91%10%11.04%11.12%2.33%-14.1%-11.15%-7.82%-6.55%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 39.277.211415820720959.373.72.8
Y-o-Y Gr. Rt.-96.8%48%37.9%31.6%0.9%-71.7%-88.2%-47.7%-24.6%
Adjusted EPS (Rs.) 3.836.398.6911.8413.871.38-23.84-14.61-9.08-6.65
Y-o-Y Gr. Rt.-66.8%36%36.3%17.2%-90.1%-1827.5%NANANA
Book Value per Share (Rs.) 51.0676.0592.69106.96152.38154.91116.5593.6183.6977.03
Adjusted Net Profit 9.221.531.34458.75.9-101-61.8-38.4-28.2
Net Op. Cash Flow (Rs. Cr.) 10.76.4-13.935.259-148.11.914.1-5.4
Debt to Cash Flow from Ops 4.478.03-4.812.351.79-7.059.4341.975.16-5.33
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.
Tree House Education & Accessories Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -25.5%-57.9%-64%-24.6%
Adjusted EPS -206.3%-186.3%NANA
Book Value per Share 4.7-12.8-12.9-8
Share Price -31.1% -39.2% -16.3% 53.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 9.5611.3610.4211.8311.220.9-17.57-14-10.4-8.42
Operating Profit Margin (%) 43.1354.4154.0956.6957.1831.62-33.17-32.3-11.71-79.02
Net Profit Margin (%) 23.4327.8927.3427.9228.282.79-170.23-883.42-1050.14-1019.6
Debt to Equity 0.390.20.20.210.160.150.160.20.210.09
Working Capital Days 2463344664864525031,67512,03919,95025,056
Cash Conversion Cycle 7-632040501831,4782,3372,650
Entity Percentage Holding
Promoters 20.54%
Institutions 7.18%
Non-Institutions 72.28%
Pledged *99.4599.4599.4599.4599.4599.4599.4599.4599.4599.45
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tree House Education & Accessories Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tree House Education & Accessories Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tree House Education & Accessories Ltd's performance infers:

Tree House Education & Accessories Ltd earnings have declined by -186.3%, whereas share price has depreciated -39.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company

Tree House Education & Accessories Ltd was originally incorporated as a private limited company on July 10, 2006 under the name of Tree House Education & Accessories Private Limited. Thereafter, pursuant to a shareholders resolution, the Company became a public limited company and a fresh certificate of incorporation was granted to the Company on December 22, 2010 by the Registrar of Companies, Mumbai.

The company was established with an objective to

Tree House Education & Accessories Ltd was originally incorporated as a private limited company on July 10, 2006 under the name of Tree House Education & Accessories Private Limited. Thereafter, pursuant to a shareholders resolution, the Company became a public limited company and a fresh certificate of incorporation was granted to the Company on December 22, 2010 by the Registrar of Companies, Mumbai.

The company was established with an objective to establish, promote, maintain, organise, undertake, develop, conduct and to run in India or abroad Playschools, Kindergartens, Kid education Parks, pre-primary schools, play gardens, play groups, Nursery, Junior JG, Senior KG or education Institution, physical Training education, artistic education, of any sort and all types of education facilities to kids and to appoint franchisee/agents in India or abroad and to undertake the management of the existing proprietary/partnership/company of Tree House Play Group and to undertake the management of companies having objects in part similar to those of this Company in India or abroad and to take all necessary steps for registering the Company as may be thought fit and to take/receive royalty/commission from the above activities and business.

It is one of the leading providers of educational services in India. It operates the largest number of self-operated pre-schools in India. It is known for the qualified & experienced teachers, our standardized curriculum and our quality education.

Milestones/major events

  • 2007 - Acquisition of proprietorship firm M/s Tree House.
  • 2007 - Launched first franchisee pre-school as a part of our expansion plans.
  • 2008 - Launched teacher training program.
  • 2008 - Received investment of Rs. 500 million* from Matrix Partners India Investment Holdings, LLC.
  • 2008 - Started providing educational services and infrastructure facilities to K-12 schools.
  • 2008 - Started day care centres under the name ‘Muskaan’.
  • 2010 - Received investment of Rs. 310 million and Rs. 90 million from FC VI India Venture (Mauritius) Limited and Matrix Partners Investment Holding, LLC,respectively.
  • 2010 - Conversion into a public limited company.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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