Why is Veranda Learning Solutions Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.07%
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.29 times
2
30.45% 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 Veranda Learning for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Veranda Learning
23.58%
0.42
56.50%
Sensex
-5.98%
-0.45
13.24%
Quality key factors
Factor
Value
Sales Growth (5y)
59.15%
EBIT Growth (5y)
31.36%
EBIT to Interest (avg)
-4.94
Debt to EBITDA (avg)
2.08
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
0.36
Tax Ratio
15.59%
Dividend Payout Ratio
0
Pledged Shares
30.45%
Institutional Holding
2.93%
ROCE (avg)
-18.98%
ROE (avg)
0.86%
Valuation Key Factors 
Factor
Value
P/E Ratio
66
Industry P/E
149
Price to Book Value
2.29
EV to EBIT
23.45
EV to EBITDA
15.26
EV to Capital Employed
1.94
EV to Sales
5.28
PEG Ratio
0.60
Dividend Yield
NA
ROCE (Latest)
8.28%
ROE (Latest)
3.45%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
32What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.17 times
ROCE(HY)
Highest at 10.71%
PAT(Q)
At Rs 11.57 cr has Grown at 72.7% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Lowest at 0.40 times
DEBTORS TURNOVER RATIO(HY)
Highest at 14.32 times
NET SALES(Q)
Highest at Rs 132.39 cr
PBDIT(Q)
Highest at Rs 46.99 cr.
PBT LESS OI(Q)
Highest at Rs 20.38 cr.
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
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Here's what is working for Veranda Learning
Operating Profit to Interest - Quarterly
Highest at 3.17 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 20.38 cr has Grown at 439.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -6.00 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 11.57 cr has Grown at 72.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 6.70 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 132.39 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 132.39 cr has Grown at 21.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 109.14 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 46.99 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 20.38 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.40 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 14.32 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio






