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Last Updated on: 11 September, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Educomp Solutions Ltd

Share Price and Basic Stock Data

Last Updated: September 9, 2024, 11:46 pm

Market Cap 27.4 Cr.
Current Price 2.24
High / Low4.74/1.79
Stock P/E
Book Value 250
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 2.00
PEG Ratio0.00

Data Source: screener.in

Stock P/E, Current Price, and Intrinsic Value Over Time

Competitors of Educomp Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Quarterly Result

MonthDec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022
Sales1500000001111
Expenses13105174620151621352718
Operating Profit-12-100-17-3-6-20-15-1-5-20-35-26-17
OPM %-993%-2,020%-6,136%-805%-3,482%-16,575%-73,700%-345%-1,244%-2,805%-5,986%-2,377%-1,699%
Other Income1-800001010000
Interest1111111111111
Depreciation1110000000000
Profit before tax-13-109-19-4-7-21-15-2-6-22-36-27-18
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit-13-109-19-4-7-21-15-2-6-22-36-27-18
EPS in Rs-1.06-8.92-1.53-0.34-0.57-1.69-1.20-0.14-0.46-1.76-2.93-2.23-1.49

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,0777332821981861776419101145
Expenses71167538625327626190210714847438038
Operating Profit36658-104-55-90-84-838-88-138-46-41-76-33
OPM %34%8%-37%-28%-48%-47%-1,300%-455%-1,427%-4,758%-2,991%-1,908%-667%
Other Income1786-36-83356-111-1,472-2-71317
Interest9114013923025725446344455
Depreciation475354483327151131000
Profit before tax244-49-332-1,165-323-476-2,371-105-151-51-44-80-32
Tax %23%17%6%0%6%0%0%0%0%0%0%0%
Net Profit189-41-312-1,165-304-476-2,371-105-151-51-44-80-32
EPS in Rs19.67-3.33-25.50-95.16-24.85-38.83-193.60-8.58-12.36-4.13-3.56-6.55-2.61
Dividend Payout %2%-2%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-121.69%-660.98%-273.40%73.91%-56.58%-398.11%95.57%-43.81%66.23%13.73%-81.82%
Change in YoY Net Profit Growth (%)0.00%-539.28%387.58%347.30%-130.48%-341.53%493.68%-139.38%110.03%-52.50%-95.54%

Growth

Compounded Sales Growth
10 Years:-34%
5 Years:-27%
3 Years:62%
TTM:4%
Compounded Profit Growth
10 Years:6%
5 Years:11%
3 Years:10%
TTM:58%
Stock Price CAGR
10 Years:-24%
5 Years:12%
3 Years:-9%
1 Year:4%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital242424242424242424242424
Reserves1,9611,652465135-302-2,660-2,769-2,926-2,928-2,971-3,052-3,085
Borrowings1,1281,9842,5142,5082,4722,4781452,5712,5562,5842,6412,657
Other Liabilities4783314004205985922,961609605611627620
Total Liabilities3,5923,9913,4033,0862,792434361278258247241216
Fixed Assets133106845238241266555
CWIP494222000002
Investments1,6841,6941,6941,7191,51192868181818181
Other Assets1,7712,1831,6221,3141,240317263190171161154128
Total Assets3,5923,9913,4033,0862,792434361278258247241216

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -290-756-30014075-15-71-9-3-2-1
Cash from Investing Activity -765817153101021-1
Cash from Financing Activity 298698320-66-94-6-000000
Net Cash Flow-67-03790-16-20-62-9-0-1-2

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow366.0057.00-105.00-57.00-92.00-86.00-840.00-233.00-140.00-48.00-43.00-78.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days6492,3882,4992,2462,1051,5074,2705,52846,45331,45310,8799,460
Inventory Days561834831589266489
Days Payable2454861,3948461,1557,73343,491
Cash Conversion Cycle4602,0861,5881,5581,042-5,563-39,1325,52846,45331,45310,8799,460
Working Capital Days5592,2301,979-2,864-3,724-14,914-51,442-107,859-169,533-121,680-44,006-44,450
ROCE %1%-4%-2%-2%-3%-83%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2020Jun 2020Sep 2021Dec 2021Mar 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters44.78%44.78%44.78%44.78%44.78%44.77%44.78%44.78%44.78%44.78%44.78%44.78%
FIIs0.35%0.69%0.47%0.36%0.36%0.36%0.36%0.36%0.36%0.00%0.00%0.00%
DIIs0.14%0.13%0.11%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%0.10%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public54.72%54.39%54.64%54.75%54.75%54.76%54.75%54.75%54.75%55.10%55.11%55.12%
No. of Shareholders1,08,6131,08,8751,01,3911,01,0631,01,58699,54898,65497,64896,76596,01195,43794,321

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 22Mar 21Mar 20Mar 19Mar 18
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-3.62-4.18-7.79-14.96-207.49
Diluted EPS (Rs.)-3.62-4.18-7.79-14.96-207.49
Cash EPS (Rs.)-3.52-4.05-7.80-8.70-210.13
Book Value[Excl.RevalReserv]/Share (Rs.)-244.02-240.40-240.25-232.44-188.76
Book Value[Incl.RevalReserv]/Share (Rs.)-244.02-240.40-240.25-232.44-188.76
Revenue From Operations / Share (Rs.)0.110.070.781.587.49
PBDIT / Share (Rs.)-3.15-3.73-11.15-8.30-195.08
PBIT / Share (Rs.)-3.19-3.80-11.43-14.76-197.59
PBT / Share (Rs.)-3.55-4.13-8.07-15.16-212.47
Net Profit / Share (Rs.)-3.55-4.13-8.07-15.16-212.63
NP After MI And SOA / Share (Rs.)-3.62-4.18-7.79-14.96-207.49
PBDIT Margin (%)-2797.75-4724.12-1413.98-526.06-2605.12
PBIT Margin (%)-2827.95-4821.42-1448.41-935.03-2638.55
PBT Margin (%)-3152.49-5237.88-1022.88-960.31-2837.30
Net Profit Margin (%)-3152.49-5237.88-1022.88-960.31-2839.46
NP After MI And SOA Margin (%)-3213.97-5298.86-987.94-947.57-2770.80
Return on Capital Employeed (%)1.341.624.886.52108.07
Return On Assets (%)-16.55-18.33-31.84-55.56-148.35
Long Term Debt / Equity (X)-0.01-0.01-0.01-0.01-0.01
Total Debt / Equity (X)-0.86-0.05-0.05-0.05-0.06
Asset Turnover Ratio (%)0.010.000.030.010.03
Current Ratio (X)0.040.050.050.080.08
Quick Ratio (X)0.040.050.050.080.08
Interest Coverage Ratio (X)-8.62-11.34-24.58-20.82-17.75
Interest Coverage Ratio (Post Tax) (X)-8.71-11.58-25.18-37.00-17.99
Enterprise Value (Cr.)2622.70173.41159.85173.12252.76
EV / Net Operating Revenue (X)1899.13179.5216.558.962.76
EV / EBITDA (X)-67.88-3.80-1.17-1.70-0.10
MarketCap / Net Operating Revenue (X)31.2129.671.331.430.58
Price / BV (X)-0.01-0.010.00-0.01-0.02
Price / Net Operating Revenue (X)31.2629.701.331.430.58
EarningsYield-1.03-1.79-7.42-6.62-47.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹573.75

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 25,513.84% compared to the current price ₹2.24

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Intrinsic Value: 922.58

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 41,086.61% compared to the current price ₹2.24

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 60.80%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 0.58, which is a positive sign.
  1. The stock has a low average ROCE of -7.75%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 43.50, which may not be favorable.
  3. The company has higher borrowings (2,186.50) compared to reserves (-1,373.33), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (129.31) and profit (-107.85).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Educomp Solutions Ltd:
    1. Net Profit Margin: -3152.49%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 1.34% (Industry Average ROCE: 0%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0% (Industry Average ROE: 0%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -8.71
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.04
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 0 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: -0.86
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Educomp Solutions Ltd. is a Public Limited Listed company incorporated on 07/09/1994 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74999DL1994PLC061353 and registration number is 061353. Currently company belongs to the Industry of Education - Coaching/Study Material/Others. Company’s Total Operating Revenue is Rs. 19.33 Cr. and Equity Capital is Rs. 24.49 Cr. for the Year ended 31/03/2019.
INDUSTRYADDRESSCONTACT
Education - Coaching/Study Material/Others1211, Padma Tower I, New Delhi Delhi 110008investor.services@educomp.com
http://www.educomp.com
Management
NamePosition Held
Mr. Shantanu PrakashChairman & Managing Director
Mr. Vinod Kumar DandonaDirector
Mr. Vijay Kumar ChoudharyDirector

FAQ

What is the latest fair value of Educomp Solutions Ltd?

The latest fair value of Educomp Solutions Ltd is ₹573.75.

What is the Market Cap of Educomp Solutions Ltd?

The Market Cap of Educomp Solutions Ltd is 27.4 Cr..

What is the current Stock Price of Educomp Solutions Ltd as on 11 September 2024?

The current stock price of Educomp Solutions Ltd as on 11 September 2024 is 2.24.

What is the High / Low of Educomp Solutions Ltd stocks in FY 2024?

In FY 2024, the High / Low of Educomp Solutions Ltd stocks is 4.74/1.79.

What is the Stock P/E of Educomp Solutions Ltd?

The Stock P/E of Educomp Solutions Ltd is .

What is the Book Value of Educomp Solutions Ltd?

The Book Value of Educomp Solutions Ltd is 250.

What is the Dividend Yield of Educomp Solutions Ltd?

The Dividend Yield of Educomp Solutions Ltd is 0.00 %.

What is the ROCE of Educomp Solutions Ltd?

The ROCE of Educomp Solutions Ltd is %.

What is the ROE of Educomp Solutions Ltd?

The ROE of Educomp Solutions Ltd is %.

What is the Face Value of Educomp Solutions Ltd?

The Face Value of Educomp Solutions Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Educomp Solutions Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE