Stock Price Movement and Market Context
On the trading day, CL Educate Ltd’s shares touched an intraday low of Rs 48.52, closing with a day’s loss of 2.04%. This decline extended the stock’s losing streak to two consecutive sessions, during which it has shed 5.33% in value. The stock’s performance lagged behind the Other Consumer Services sector by 1.1% on the day. Notably, CL Educate is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market showed resilience. The Sensex, after a negative start, rebounded to close at 82,696.30, up 0.08%, and remains within 4.19% of its 52-week high of 86,159.02. Mega-cap stocks led the market gains, while the Sensex’s 50-day moving average remains above its 200-day average, indicating a generally positive medium-term trend for the benchmark index.
Long-Term Performance and Valuation Concerns
Over the past year, CL Educate Ltd’s stock has declined by 46.53%, a stark contrast to the Sensex’s 9.00% gain over the same period. The stock’s 52-week high was Rs 120.73, underscoring the magnitude of the recent price erosion. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over one, three years, and the past three months.
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Financial Metrics Highlighting Challenges
CL Educate Ltd’s fundamental indicators reflect ongoing difficulties. The company’s average Return on Equity (ROE) stands at a modest 3.75%, indicating limited profitability relative to shareholder equity. The operating profit has grown at an annualised rate of 18.04% over the past five years, which, while positive, has not translated into sustained stock price appreciation.
Recent quarterly results reveal further pressures. The company reported a net loss (PAT) of Rs -11.15 crores, a decline of 601.3% compared to prior periods. Interest expenses for the latest six months rose by 43.35% to Rs 26.85 crores, contributing to the strain on earnings. The debt-to-equity ratio at the half-year mark reached 1.03 times, the highest level recorded, signalling increased leverage.
Valuation metrics also point to challenges. With a negative ROE of -1.2% and a price-to-book value of 1, the stock is considered expensive relative to its peers’ historical averages. This premium valuation, despite deteriorating profitability, has weighed on investor sentiment.
Promoter Shareholding and Market Impact
Another factor influencing the stock’s performance is the high level of promoter share pledging. Approximately 50.09% of promoter shares are pledged, which can exert additional downward pressure on the stock price, particularly in volatile or declining markets. This elevated pledge level may contribute to increased selling pressure as lenders seek to mitigate risk.
Comparative Sector and Market Performance
Within the Other Consumer Services sector, CL Educate Ltd’s performance has been notably weaker than its peers. The sector itself has shown mixed results, but the stock’s consistent underperformance relative to sector averages and the broader market indices highlights the specific challenges faced by the company.
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Mojo Score and Rating Update
Reflecting the company’s current standing, CL Educate Ltd holds a Mojo Score of 7.0 and has been assigned a Mojo Grade of Strong Sell as of 10 Nov 2025, upgraded from a previous Sell rating. The Market Capitalisation Grade is 4, indicating a relatively modest market cap within its sector. These ratings underscore the cautious stance adopted by the rating agency based on the company’s financial and market performance.
Summary of Key Performance Indicators
To summarise, CL Educate Ltd’s key metrics as of early 2026 include:
- 52-week low price: Rs 48.52
- 52-week high price: Rs 120.73
- One-year stock return: -46.53%
- Sensex one-year return: +9.00%
- Average ROE: 3.75%
- Operating profit growth (5 years annualised): 18.04%
- Latest quarterly PAT: Rs -11.15 crores (down 601.3%)
- Interest expense (latest six months): Rs 26.85 crores (up 43.35%)
- Debt-to-equity ratio (half-year): 1.03 times
- Promoter share pledge: 50.09%
Market Position and Outlook
CL Educate Ltd’s stock remains under pressure amid a combination of subdued profitability, elevated leverage, and valuation concerns. The stock’s trading below all major moving averages and its recent 52-week low highlight the challenges faced in regaining investor confidence. While the broader market and sector have shown resilience, the company’s specific financial metrics and shareholding structure continue to weigh on its share price trajectory.
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