MT Educare Ltd (MTEDUCARE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Humming Bird Edu

Asian Warehous.

MT Educare

Vantage Knowledg

Educomp Sol.

Tree House Edu.

DSJ Keep Learn

Safecure Service

Usha Mart. Edu.

Western Overseas

Virtual Global

Why is MT Educare Ltd ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.95
The company has been able to generate a Return on Equity (avg) of 0.83% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET SALES(Q) At Rs 9.88 cr has Fallen at -23.41%
PAT(Latest six months) At Rs 0.51 cr has Grown at -32.49%
INTEREST(Q) At Rs 2.50 cr has Grown at 249,999,900.00%

Risky - Negative Operating Profits

The company has recorded a negative EBIT of Rs. -1.47 cr
Over the past year, while the stock has generated a return of -25.11%, its profits have risen by 89.3%
The stock is trading risky as compared to its average historical valuations

89.61% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.11% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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 MT Educare for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

MT Educare

-25.11%

-0.52

47.88%

Sensex

-10.21%

-0.78

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.63%

EBIT Growth (5y)

14.44%

EBIT to Interest (avg)

-1.95

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-24.71

Sales to Capital Employed (avg)

0.29

Tax Ratio

3.60%

Dividend Payout Ratio

Pledged Shares

89.61%

Institutional Holding

0.00%

ROCE (avg)

-13.37%

ROE (avg)

0.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

147

Price to Book Value

-2.47

EV to EBIT

-95.23

EV to EBITDA

30.63

EV to Capital Employed

1.15

EV to Sales

3.87

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.20%

ROE (Latest)

Negative BV

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

PBDIT(Q)

Highest at Rs 4.81 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 48.68%

PAT(Q)

Highest at Rs 2.60 cr.

EPS(Q)

Highest at Rs 0.36

-18What is not working for the Company

NET SALES(Q)

At Rs 9.88 cr has Fallen at -23.41%

PAT(Latest six months)

At Rs 0.51 cr has Grown at -32.49%

INTEREST(Q)

At Rs 2.50 cr has Grown at 249,999,900.00%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.28 times

NON-OPERATING INCOME(Q)

is 74.23 % of Profit Before Tax (PBT

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Here's what is working for MT Educare

Profit After Tax (PAT) - Quarterly

At Rs 2.60 cr has Grown at 121.7%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 4.81 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 48.68%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

Highest at Rs 2.60 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.36

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for MT Educare

Net Sales - Quarterly

At Rs 9.88 cr has Fallen at -23.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Interest - Quarterly

At Rs 2.50 cr has Grown at 249,999,900.00%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 74.23 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 3.28 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 2.16 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income