Why is Veranda Learning Solutions Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0.01%
- Poor long term growth as Operating profit has grown by an annual rate 3.80% of over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.94 times
2
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -15.81%, its profits have fallen by -59%
3
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -7.82% over the previous quarter and currently hold 33.96% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
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 Veranda Learning for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Veranda Learning
-15.81%
-0.28
56.64%
Sensex
4.71%
0.39
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
52.90%
EBIT Growth (5y)
3.80%
EBIT to Interest (avg)
-4.43
Debt to EBITDA (avg)
1.94
Net Debt to Equity (avg)
0.39
Sales to Capital Employed (avg)
0.37
Tax Ratio
2.64%
Dividend Payout Ratio
0
Pledged Shares
19.89%
Institutional Holding
4.41%
ROCE (avg)
-22.41%
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
45
Price to Book Value
2.33
EV to EBIT
-19.24
EV to EBITDA
35.74
EV to Capital Employed
1.95
EV to Sales
5.20
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-10.15%
ROE (Latest)
-20.90%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
27What is working for the Company
PBT LESS OI(Q)
At Rs 14.95 cr has Grown at 121.7% (vs previous 4Q average
PAT(Q)
At Rs 13.83 cr has Grown at 125.3% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 2.40 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.98 times
NET SALES(Q)
Highest at Rs 126.74 cr
PBDIT(Q)
Highest at Rs 46.19 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 36.44%
EPS(Q)
Highest at Rs 10.01
-3What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Veranda Learning
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 14.95 cr has Grown at 121.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -68.86 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 13.83 cr has Grown at 125.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -54.65 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 2.40 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 126.74 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 46.19 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 36.44%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 14.95 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 13.83 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 10.01
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.98 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio






