Why is Educomp Solutions Ltd ?
1
Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months
- Poor long term growth as Net Sales has grown by an annual rate of -17.82% and Operating profit at 0% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 0 times
2
Negative results in Mar 16
- CASH AND EQV(HY) Lowest at INR 1,062.03 MM
- DEBT-EQUITY RATIO (HY) Highest at 1,262.55 %
- NET SALES(Q) Lowest at INR 1,125.97 MM
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -33.66%, its profits have risen by 4.9%
4
94.41% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Consumer Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Educomp Sol. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Educomp Sol.
-33.66%
-0.59
56.70%
Sensex
4.68%
0.40
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-17.82%
EBIT Growth (5y)
12.59%
EBIT to Interest (avg)
0
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.86
Sales to Capital Employed (avg)
0
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
94.41%
Institutional Holding
0.12%
ROCE (avg)
8.34%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
0
Price to Book Value
-0.01
EV to EBIT
-99.90
EV to EBITDA
-103.20
EV to Capital Employed
-6.36
EV to Sales
742.36
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Loading Valuation Snapshot...
Here's what is working for Educomp Sol.
Net Profit
Higher at INR -1,834.49 MM
than preceding 12 month period ended Mar 2016MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (INR MM)
Raw Material Cost
Fallen by -71.89% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Educomp Sol.
Net Sales
Lowest at INR 1,125.97 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (INR MM)
Net Sales
At INR 1,125.97 MM has Fallen at -11.05%
over average net sales of the previous four periods of INR 1,265.8 MMMOJO Watch
Near term sales trend is negative
Net Sales (INR MM)
Operating Profit
Lowest at INR -150.83 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (INR MM)
Operating Profit Margin
Lowest at -13.4 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at INR -1,219.18 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (INR MM)
Cash and Eqv
Lowest at INR 1,062.03 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 1,262.55 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






