Stock Performance and Market Context
The stock’s latest low comes as it continues to trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This underperformance is further highlighted by the stock’s day change of -0.11%, which trails the sector by -0.56% on the same day.
In contrast, the broader market benchmark, the Sensex, opened lower by 94.55 points and is currently trading at 84,537.24, down 0.19%. Despite this dip, the Sensex remains relatively close to its 52-week high of 86,159.02, just 1.92% away, and maintains a positive trend with its 50-day moving average above the 200-day moving average.
Over the past year, Veranda Learning Solutions Ltd has recorded a negative return of -27.29%, significantly underperforming the Sensex’s positive 8.04% gain. The stock’s 52-week high was Rs.272.2, underscoring the extent of the recent decline.
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Fundamental and Financial Metrics
Veranda Learning Solutions Ltd’s financial profile reveals several areas of concern that have contributed to its current valuation and market sentiment. The company’s long-term fundamental strength is weak, reflected in an average Return on Capital Employed (ROCE) of just 0.01%. This minimal return indicates limited efficiency in generating profits from its capital base over time.
Growth metrics also show subdued progress, with operating profit increasing at an annual rate of only 3.80% over the last five years. This slow growth rate contrasts with the company’s high leverage, as evidenced by a Debt to EBITDA ratio of 5.94 times, signalling a relatively low capacity to service its debt obligations comfortably.
Profitability challenges are further underscored by a 59% decline in profits over the past year, a significant contraction that has heightened the stock’s risk profile. The company’s valuation appears stretched relative to its historical averages, adding to the cautious outlook.
Shareholding and Promoter Activity
Another notable development is the reduction in promoter shareholding. Promoters have decreased their stake by 7.82% over the previous quarter, now holding 33.96% of the company. This decline in promoter confidence may be interpreted as a signal of diminished conviction in the company’s near-term prospects.
Consistent Underperformance Against Benchmarks
Veranda Learning Solutions Ltd has consistently underperformed relative to its benchmark indices. Over the last three years, the stock has lagged behind the BSE500 index annually, with the most recent year showing a -27.29% return. This persistent underperformance highlights the challenges faced by the company in delivering shareholder value compared to broader market peers.
Recent Quarterly Results and Profitability Trends
Despite the broader challenges, the company has reported positive quarterly results in recent periods. The September 2025 quarter saw a remarkable 1502.01% growth in net profit, contributing to three consecutive quarters of positive results. Profit Before Tax (PBT) excluding other income reached Rs.14.95 crores, growing 121.7% compared to the previous four-quarter average, while Profit After Tax (PAT) stood at Rs.13.83 crores, up 125.3% over the same period.
Additionally, the operating profit to interest coverage ratio improved to 2.40 times in the latest quarter, the highest recorded, indicating a better ability to meet interest expenses from operating earnings.
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Mojo Score and Rating Update
The company’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell as of 8 December 2025, an update from the previous Sell rating. This downgrade reflects the deteriorating fundamentals and market performance. The Market Cap Grade is rated at 3, indicating a relatively modest market capitalisation compared to peers.
Summary of Key Concerns
In summary, Veranda Learning Solutions Ltd’s stock has reached a new 52-week low of Rs.173.3 amid a combination of weak long-term financial metrics, high leverage, declining profitability, and reduced promoter confidence. The stock’s consistent underperformance relative to benchmarks and trading below all major moving averages further illustrate the challenges faced by the company in the current market environment.
While recent quarterly results have shown some improvement in profitability and interest coverage, these have yet to translate into a sustained positive trend in the stock price or overall market sentiment.
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