BSE:540403

Stock Analysis Report

Executive Summary

CL Educate Limited operates as a technology-enabled provider of education products and marketing services in India and internationally.

Rewards

Trading at 27.6% below its fair value

Earnings grew by 121.5% over the past year

Risk Analysis

Earnings have declined by -11.32% per year over past 5 years

Unstable dividend track record

Large one-off items impacting financial results

Does not have a meaningful market cap (₹1B)



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has CL Educate's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540403 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

540403

-3.1%

IN Consumer Services

-1.8%

IN Market


1 Year Return

-36.4%

540403

-35.4%

IN Consumer Services

5.2%

IN Market

Return vs Industry: 540403 underperformed the Indian Consumer Services industry which returned -35.4% over the past year.

Return vs Market: 540403 underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

540403IndustryMarket
7 Day4.2%-3.1%-1.8%
30 Day-4.9%-12.0%-0.9%
90 Day-9.8%-3.3%8.3%
1 Year-35.6%-36.4%-35.0%-35.4%7.2%5.2%
3 Yearn/a-50.5%-51.0%30.3%23.4%
5 Yearn/a-36.9%-38.6%39.3%26.8%

Price Volatility Vs. Market

How volatile is CL Educate's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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Valuation

Is CL Educate undervalued compared to its fair value and its price relative to the market?

27.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 540403 (₹75.55) is trading below our estimate of fair value (₹104.34)

Significantly Below Fair Value: 540403 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540403 is good value based on its PE Ratio (6.5x) compared to the Consumer Services industry average (29.5x).

PE vs Market: 540403 is good value based on its PE Ratio (6.5x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540403's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540403 is good value based on its PB Ratio (0.3x) compared to the IN Consumer Services industry average (0.6x).


Next Steps

Future Growth

How is CL Educate forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.0%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as CL Educate has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has CL Educate performed over the past 5 years?

-11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540403 has a large one-off gain of ₹67.6M impacting its September 30 2019 financial results.

Growing Profit Margin: 540403's current net profit margins (4.8%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 540403's earnings have declined by -11.3% per year over the past 5 years.

Accelerating Growth: 540403's earnings growth over the past year (121.5%) exceeds its 5-year average (-11.3% per year).

Earnings vs Industry: 540403 earnings growth over the past year (121.5%) exceeded the Consumer Services industry -3.2%.


Return on Equity

High ROE: 540403's Return on Equity (4.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CL Educate's financial position?


Financial Position Analysis

Short Term Liabilities: 540403's short term assets (₹3.2B) exceed its short term liabilities (₹1.8B).

Long Term Liabilities: 540403's short term assets (₹3.2B) exceed its long term liabilities (₹201.9M).


Debt to Equity History and Analysis

Debt Level: 540403's debt to equity ratio (16%) is considered satisfactory.

Reducing Debt: 540403's debt to equity ratio has reduced from 32.1% to 16% over the past 5 years.

Debt Coverage: 540403's debt is well covered by operating cash flow (36.8%).

Interest Coverage: 540403's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet

Inventory Level: 540403 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540403's debt is covered by short term assets (assets are 5.7x debt).


Next Steps

Dividend

What is CL Educate's current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%0.6%markettop25%2.5%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 540403's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 540403's dividend (2.65%) is in the top 25% of dividend payers in the Indian market (2.48%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 540403's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 540403's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.7%), 540403's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of CL Educate's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average board tenure


CEO

Gautam Puri (54yo)

0yrs

Tenure

₹11,231,000

Compensation

Mr. Gautam Puri serves as Managing Director and Vice Chairman of CL Educate Limited and Career Launcher USA, Inc. Mr. Puri serves as Managing Director of Powermath. He joined CL Educate Limited in April 25 ...


CEO Compensation Analysis

Compensation vs Market: Gautam's total compensation ($USD157.10K) is above average for companies of similar size in the Indian market ($USD33.57K).

Compensation vs Earnings: Gautam's compensation has increased by more than 20% in the past year.


Board Age and Tenure

1.8yrs

Average Tenure

49yo

Average Age

Experienced Board: 540403's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 540403 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹499,20001 Oct 19
Gautam Puri
EntityIndividual
Role
Chief Executive Officer
Vice Chairman & MD
Shares6,400
Max Price₹78.00
Buy₹390,00030 Sep 19
Satya Ramakrishnan
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares5,000
Max Price₹78.00
Buy₹284,40004 Jan 19
Bilakes Consulting Private Limited
EntityCompany
Shares2,370
Max Price₹120.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Gautam Puri (54yo)

    Vice Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹11.23m
  • Nikhil Mahajan (48yo)

    Group CEO of Enterprise Business & Executive Director

    • Tenure: 18.9yrs
    • Compensation: ₹11.67m
  • Satya Ramakrishnan (49yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: ₹11.60m
  • Sujit Bhattacharyya (52yo)

    Chief Innovation Officer

    • Tenure: 0yrs
  • Himanshu Jain (47yo)

    President & COO of Network

    • Tenure: 0yrs
  • Sanjeev Srivastava (59yo)

    President of Emerging Business Group

    • Tenure: 0yrs
  • Rachna Sharma (43yo)

    Associate VP

    • Tenure: 0yrs
    • Compensation: ₹5.17m
  • Ashish Bahri (45yo)

    Senior Vice President of Business Development

    • Tenure: 0yrs
  • Arjun Wadhwa (39yo)

    Chief Financial Officer

    • Tenure: 1.2yrs
    • Compensation: ₹11.00m
  • Akkapeddi Satyasrinivas (45yo)

    President of Business Development

    • Tenure: 0yrs

Board Members

  • Madhumita Ganguli (63yo)

    Non-Executive Independent Director

    • Tenure: 2.4yrs
    • Compensation: ₹309.00k
  • Sanjay Tapriya (58yo)

    Non-Executive Independent Director

    • Tenure: 0.2yrs
  • Gautam Puri (54yo)

    Vice Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹11.23m
  • Nikhil Mahajan (48yo)

    Group CEO of Enterprise Business & Executive Director

    • Tenure: 18.9yrs
    • Compensation: ₹11.67m
  • Satya Ramakrishnan (49yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: ₹11.60m
  • Imran Jafar (44yo)

    Non-Executive & Non-independent Director

    • Tenure: 1.1yrs
    • Compensation: ₹50.00k
  • Girish Shivani (49yo)

    Additional Non-Executive Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹255.00k
  • Viraj Tyagi (49yo)

    Non-Executive Independent Director

    • Tenure: 11.7yrs
    • Compensation: ₹279.00k

Company Information

CL Educate Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CL Educate Limited
  • Ticker: 540403
  • Exchange: BSE
  • Founded: 1996
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: ₹1.070b
  • Shares outstanding: 14.17m
  • Website: https://www.cleducate.com

Number of Employees


Location

  • CL Educate Limited
  • A-45, First Floor
  • Mohan Co-operative Industrial Estate
  • New Delhi
  • Delhi
  • 110044
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540403BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2017
CLEDUCATENSEI (National Stock Exchange of India)YesEquity SharesININRMar 2017

Biography

CL Educate Limited operates as a technology-enabled provider of education products and marketing services in India and internationally. It operates through Consumer Test Prep, Consumer Publishing, Enterpri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 12:57
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.