Stock Price Movement and Market Context
On 25 Feb 2026, CL Educate Ltd’s shares touched an intraday low of Rs.43.5, representing a 3.7% decline on the day. This marks the lowest price level for the stock in the past year, down sharply from its 52-week high of Rs.120.73. The stock has experienced a consecutive three-day fall, resulting in a cumulative loss of 10.68% over this period. This decline contrasts with the broader market, where the Sensex gained 0.71%, closing at 82,810.88 points, just 4.04% shy of its own 52-week high of 86,159.02.
CL Educate’s performance has lagged considerably behind the Sensex over the last year, with a negative return of 47.37% compared to the Sensex’s positive 10.99%. The stock also underperformed its sector, Other Consumer Services, by 3.43% on the day. Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
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Financial Performance and Valuation Metrics
CL Educate’s financial indicators have contributed to the subdued market sentiment. The company’s long-term fundamental strength is weak, with an average Return on Equity (ROE) of just 3.75%. Over the past five years, operating profit has grown at an annual rate of 18.04%, which is modest relative to industry peers.
Recent quarterly results have been challenging. The company reported a net loss (PAT) of Rs.11.15 crores, a decline of 601.3% compared to the previous period. Interest expenses for the latest six months rose by 43.35% to Rs.26.85 crores, indicating increased financial costs. The debt-to-equity ratio at the half-year mark stands at 1.03 times, reflecting a relatively high leverage position.
Valuation metrics further highlight concerns. The stock’s ROE for the latest period is negative at -1.2%, while the Price to Book Value ratio is 0.9, suggesting the stock is trading at a premium relative to its peers’ historical valuations despite deteriorating profitability. Over the past year, profits have fallen by 238.5%, underscoring the pressure on earnings.
Shareholding and Market Pressure
Promoter shareholding dynamics add to the stock’s downward pressure. Approximately 50.09% of promoter shares are pledged, which can exacerbate selling pressure in declining markets. This factor often influences investor sentiment and can contribute to volatility in the stock price.
CL Educate’s performance has been below par not only in the near term but also over longer horizons. The stock has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in maintaining competitive growth and profitability.
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Sector and Market Comparison
Operating within the Other Consumer Services sector, CL Educate’s recent underperformance contrasts with the broader market’s positive trend. The Sensex, led by mega-cap stocks, has shown resilience and upward momentum, while CL Educate’s stock continues to face downward pressure. The divergence highlights the stock’s relative weakness within its sector and the wider market environment.
Summary of Key Metrics
To summarise, the stock’s key metrics as of 25 Feb 2026 are:
- New 52-week low price: Rs.43.5
- One-year return: -47.37%
- 52-week high price: Rs.120.73
- ROE (average): 3.75%
- 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 shares pledged: 50.09%
- Mojo Score: 7.0 (Strong Sell, upgraded from Sell on 10 Nov 2025)
These figures collectively illustrate the challenges faced by CL Educate Ltd in maintaining market confidence and financial stability.
Technical Indicators and Trading Trends
From a technical perspective, the stock’s position below all major moving averages indicates a sustained bearish trend. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price level, suggesting resistance at multiple points. The recent three-day consecutive decline and the intraday low of Rs.43.5 reinforce the downward momentum.
In contrast, the Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally positive medium-term market trend. This divergence emphasises the stock’s relative weakness within the broader market context.
Conclusion
CL Educate Ltd’s fall to a 52-week low of Rs.43.5 reflects a combination of subdued financial performance, elevated leverage, and market pressures related to promoter share pledging. The stock’s valuation metrics and recent results have contributed to a downgrade in its rating to Strong Sell, underscoring the challenges it faces in regaining investor confidence. While the broader market and sector have shown resilience, CL Educate’s stock continues to navigate a difficult phase marked by sustained declines and underperformance.
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