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Last Updated on: 06 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Global Education Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 4, 2024, 5:36 pm

Market Cap 368 Cr.
Current Price 180
High / Low383/164
Stock P/E12.4
Book Value 45.0
Dividend Yield2.77 %
ROCE54.6 %
ROE40.2 %
Face Value 5.00
PEG Ratio0.36

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

View Share Price Target for Global Education Ltd

Competitors of Global Education Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Global Education Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7.998.506.957.2512.8712.3212.0916.5211.3921.9914.0422.8517.32
Expenses5.2910.344.964.606.067.176.578.934.987.054.618.375.97
Operating Profit2.70-1.841.992.656.815.155.527.596.4114.949.4314.4811.35
OPM %33.79%-21.65%28.63%36.55%52.91%41.80%45.66%45.94%56.28%67.94%67.17%63.37%65.53%
Other Income0.310.460.670.380.360.460.580.580.530.550.370.630.51
Interest0.000.000.000.000.000.000.000.000.000.000.000.000.00
Depreciation0.180.150.140.751.381.481.451.341.232.261.001.041.05
Profit before tax2.83-1.532.522.285.794.134.656.835.7113.238.8014.0710.81
Tax %25.09%17.65%25.00%28.95%25.04%6.30%25.16%25.48%26.62%24.79%25.11%23.67%30.71%
Net Profit2.12-1.261.901.624.333.883.485.094.189.946.6010.747.49
EPS in Rs1.04-0.620.930.792.121.901.712.502.054.883.245.273.68

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
Sales0125112632302726396276
Expenses011361921201622232826
Operating Profit0112671010114173450
OPM %51%60%46%50%28%33%34%41%15%42%56%66%
Other Income0000012222222
Interest0000000000000
Depreciation0001112331465
Profit before tax011257109114153047
Tax %31%32%33%34%32%30%28%26%28%26%25%
Net Profit-0011357783112335
EPS in Rs9.5024.003.300.412.443.403.253.851.545.3211.1417.07
Dividend Payout %0%0%0%0%0%20%9%15%13%65%28%22%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%200.00%66.67%40.00%0.00%14.29%-62.50%266.67%109.09%
Change in YoY Net Profit Growth (%)0.00%200.00%-133.33%-26.67%-40.00%14.29%-76.79%329.17%-157.58%

Global Education Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2014-2015 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:40%
5 Years:19%
3 Years:41%
TTM:11%
Compounded Profit Growth
10 Years:41%
5 Years:35%
3 Years:113%
TTM:15%
Stock Price CAGR
10 Years:%
5 Years:71%
3 Years:99%
1 Year:-7%
Return on Equity
10 Years:31%
5 Years:30%
3 Years:37%
Last Year:40%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:39 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital0001222210101010
Reserves01251723283530375576
Borrowings-00130-0-0-0-0-0-0-0
Other Liabilities011234444688
Total Liabilities124102329354144527494
Fixed Assets011413431161310
CWIP-0-0-0-01-0-0-00-0-0-0
Investments-0-0-0-0-0055002025
Other Assets11362026263442364159
Total Assets124102329354144527494

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 011332-3-26212620
Cash from Investing Activity -0-1-1-3-44-62-5-14-17-10
Cash from Financing Activity 00027-2-2-1-0-4-4-10
Net Cash Flow001264-11-1135-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.001.001.001.003.007.0010.0010.0011.004.0017.0034.00

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 Days4627132512717821820310284131
Inventory Days9234412601212331
Days Payable1503768105261606186103
Cash Conversion Cycle462713-3396-1417203-383-7859
Working Capital Days36-530413399239387469231126206
ROCE %268%148%75%91%52%41%35%32%11%34%54%55%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.95%74.95%74.95%74.95%74.95%74.36%73.32%73.16%73.16%73.16%70.94%70.94%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.12%0.12%0.07%0.07%0.14%0.07%
Public25.06%25.05%25.05%25.05%25.05%25.64%26.56%26.72%26.77%26.77%28.92%28.99%
No. of Shareholders1,9032,1973,1613,3204,6876,12311,68111,99514,14414,22419,17920,638

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 20Mar 19
FaceValue5.005.0010.0010.0010.00
Basic EPS (Rs.)16.6111.135.3631.7126.55
Diluted EPS (Rs.)16.6111.135.3631.7126.55
Cash EPS (Rs.)17.1714.1814.4841.9637.66
Book Value[Excl.RevalReserv]/Share (Rs.)43.6332.0945.88149.16121.83
Book Value[Incl.RevalReserv]/Share (Rs.)43.6332.0945.88149.16121.83
Revenue From Operations / Share (Rs.)36.5030.4438.70104.74120.72
PBDIT / Share (Rs.)22.6317.9818.1453.8749.62
PBIT / Share (Rs.)20.5014.8914.3243.6238.80
PBT / Share (Rs.)20.5014.8914.3242.9537.43
Net Profit / Share (Rs.)15.0411.0910.6631.7126.84
NP After MI And SOA / Share (Rs.)16.6111.1010.6631.7126.55
PBDIT Margin (%)62.0059.0546.8651.4341.10
PBIT Margin (%)56.1848.9136.9941.6432.14
PBT Margin (%)56.1848.9036.9841.0131.00
Net Profit Margin (%)41.2036.4427.5430.2722.23
NP After MI And SOA Margin (%)45.5236.4527.5430.2721.99
Return on Networth / Equity (%)38.0234.5923.2321.2521.78
Return on Capital Employeed (%)46.6346.2230.9929.1031.75
Return On Assets (%)34.6830.6020.7419.0918.99
Asset Turnover Ratio (%)0.860.980.000.700.94
Current Ratio (X)7.054.736.468.195.78
Quick Ratio (X)6.934.666.308.045.71
Dividend Payout Ratio (NP) (%)30.0918.0237.5212.6118.83
Dividend Payout Ratio (CP) (%)26.6814.1027.629.5313.38
Earning Retention Ratio (%)69.9181.9862.4887.3981.17
Cash Earning Retention Ratio (%)73.3285.9072.3890.4786.62
Interest Coverage Ratio (X)0.003660.494735.1580.9836.16
Interest Coverage Ratio (Post Tax) (X)0.002259.672783.6448.6620.56
Enterprise Value (Cr.)459.98307.0166.8312.7631.52
EV / Net Operating Revenue (X)6.194.951.700.491.05
EV / EBITDA (X)9.988.393.620.952.56
MarketCap / Net Operating Revenue (X)6.315.101.790.511.09
Retention Ratios (%)69.9081.9762.4787.3881.16
Price / BV (X)5.274.841.510.361.08
Price / Net Operating Revenue (X)6.315.101.790.511.09
EarningsYield0.070.070.150.580.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Global Education Ltd as of October 6, 2024 is: ₹230.53

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.

As of October 6, 2024, Global Education Ltd is Undervalued by 28.07% compared to the current share price ₹180.00

Intrinsic Value of Global Education Ltd as of October 6, 2024 is: ₹310.51

Calculation basis:

  • Intrinsic 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.

As of October 6, 2024, Global Education Ltd is Undervalued by 72.51% compared to the current share price ₹180.00

Last 5 Year EPS CAGR: 34.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 74.67%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -10.67, which is a positive sign.
  3. The company has higher reserves (25.75 cr) compared to borrowings (0.33 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (25.92 cr) and profit (10.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 157.67, which may not be favorable.

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 Global Education Ltd:
    1. Net Profit Margin: 41.2%
      • 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: 46.63% (Industry Average ROCE: 0.59%)
      • 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%: 38.02% (Industry Average ROE: 0.49%)
      • 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): 0
      • 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: 6.93
      • 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: 12.4 (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
      • 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

Global Education Ltd. is a Public Limited Listed company incorporated on 30/06/2011 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L80301MH2011PLC219291 and registration number is 219291. Currently Company is involved in the business activities of Educational support services. Company’s Total Operating Revenue is Rs. 39.40 Cr. and Equity Capital is Rs. 10.18 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Education - Coaching/Study Material/OthersOffice No 205, 2nd floor, Jaisingh Business Centre, CHSL, Mumbai Maharashtra 400099investorinfo@globaledu.net.in
http://www.globaledu.net.in
Management
NamePosition Held
Mr. Aditya Praneet BhandariExecutive & Wholetime Director
Mr. Gururaj KarajagiNon Exe.Non Ind.Director
Ms. Shunali NagarkattiInd. Non-Executive Director
Mr. Inder Krishen BhatInd. Non-Executive Director
Ms. Surekha Mulraj ThackerInd. Non-Executive Director
Mr. Rajan Madhaorao WelukarInd. Non-Executive Director

FAQ

What is the latest fair value of Global Education Ltd?

The latest fair value of Global Education Ltd is ₹230.53.

What is the Market Cap of Global Education Ltd?

The Market Cap of Global Education Ltd is 368 Cr..

What is the current Stock Price of Global Education Ltd as on 05 October 2024?

The current stock price of Global Education Ltd as on 05 October 2024 is ₹180.

What is the High / Low of Global Education Ltd stocks in FY 2024?

In FY 2024, the High / Low of Global Education Ltd stocks is 383/164.

What is the Stock P/E of Global Education Ltd?

The Stock P/E of Global Education Ltd is 12.4.

What is the Book Value of Global Education Ltd?

The Book Value of Global Education Ltd is 45.0.

What is the Dividend Yield of Global Education Ltd?

The Dividend Yield of Global Education Ltd is 2.77 %.

What is the ROCE of Global Education Ltd?

The ROCE of Global Education Ltd is 54.6 %.

What is the ROE of Global Education Ltd?

The ROE of Global Education Ltd is 40.2 %.

What is the Face Value of Global Education Ltd?

The Face Value of Global Education Ltd is 5.00.

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 Global Education 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