BSE:541401

Stock Analysis Report

Executive Summary

Arihant Institute Limited engages in the professional education institute business in India.

Snowflake

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Arihant Institute's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 541401's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

541401

-4.5%

IN Consumer Services

-1.2%

IN Market


1 Year Return

-76.5%

541401

-32.3%

IN Consumer Services

4.0%

IN Market

Return vs Industry: 541401 underperformed the Indian Consumer Services industry which returned -32.3% over the past year.

Return vs Market: 541401 underperformed the Indian Market which returned 4% over the past year.


Shareholder returns

541401IndustryMarket
7 Day-5.0%-4.5%-1.2%
30 Day-16.7%9.8%4.8%
90 Day26.3%8.5%7.5%
1 Year-76.5%-76.5%-31.9%-32.3%6.1%4.0%
3 Yearn/a-43.2%-43.8%34.2%27.3%
5 Yearn/a-37.6%-39.4%37.4%24.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Arihant Institute undervalued compared to its fair value and its price relative to the market?

33.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 541401's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 541401's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 541401 is poor value based on its PE Ratio (33.3x) compared to the Consumer Services industry average (19.2x).

PE vs Market: 541401 is poor value based on its PE Ratio (33.3x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 541401's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 541401 is good value based on its PB Ratio (0.4x) compared to the IN Consumer Services industry average (0.7x).


Next Steps

Future Growth

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

23.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 541401's forecast earnings growth (23.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 541401's earnings (23.3% per year) are forecast to grow faster than the Indian market (19% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 541401's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 541401's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 541401's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Arihant Institute performed over the past 5 years?

53.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 541401 has high quality earnings.

Growing Profit Margin: 541401's current net profit margins (9.5%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: 541401 has become profitable over the past 5 years, growing earnings by 53.9% per year.

Accelerating Growth: 541401's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 541401 had negative earnings growth (-4.9%) over the past year, making it difficult to compare to the Consumer Services industry average (-3.2%).


Return on Equity

High ROE: 541401's Return on Equity (1.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arihant Institute's financial position?


Financial Position Analysis

Short Term Liabilities: 541401's short term assets (₹46.5M) exceeds its short term liabilities (₹11.6M)

Long Term Liabilities: 541401's short term assets (46.5M) exceeds its long term liabilities (210.0K)


Debt to Equity History and Analysis

Debt Level: 541401's debt to equity ratio (0.2%) is considered satisfactory

Reducing Debt: 541401's debt to equity ratio has reduced from 29089.8% to 0.2% over the past 5 years.

Debt Coverage: Insufficient data to determine if 541401's debt is well covered by operating cash flow.

Interest Coverage: 541401's interest payments on its debt are well covered by EBIT (36.6x coverage).


Balance Sheet

Inventory Level: 541401 has a high level of physical assets or inventory.

Debt Coverage by Assets: 541401's debt is covered by short term assets (assets are 221.5x debt).


Next Steps

Dividend

What is Arihant Institute's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 541401's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 541401's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 541401's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 541401's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 541401's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Sandeep Kamdar (46yo)

1.3yrs

Tenure

0

Mr. Sandeep Vinodray Kamdar has been Whole Time Director & CEO for Arihant Institute Limited since August 31, 2018. 


Board Age and Tenure

1.8yrs

Average Tenure

39.5yo

Average Age

Experienced Board: 541401's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 541401 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Buy₹131,27911 Sep 19
Sandeep Kamdar
EntityIndividual
Role
Chief Executive Officer
Whole Time Director & CEO
Shares24,000
Max Price₹5.47
Sell₹410,59911 Sep 19
Sandeep Kamdar
EntityIndividual
Role
Chief Executive Officer
Whole Time Director & CEO
Shares76,000
Max Price₹5.45

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 27.9%.


Management Team

  • Rushiraj Patel (30yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
  • Kinnari Patel

    Head of Operations

    • Tenure: 0yrs
  • Sandeep Kamdar (46yo)

    Whole Time Director & CEO

    • Tenure: 1.3yrs

Board Members

  • Prashant Srivastav (40yo)

    Additional Independent Director

    • Tenure: 1.8yrs
  • Vinodbhai Shah (72yo)

    Chairman & Non-Executive Director

    • Tenure: 1.8yrs
  • Rushiraj Patel (30yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
  • Jigar Shah (39yo)

    Non-Executive Director

    • Tenure: 2yrs
  • Shivani Patel (32yo)

    Additional Independent Director

    • Tenure: 1.8yrs
  • Sandeep Kamdar (46yo)

    Whole Time Director & CEO

    • Tenure: 1.3yrs

Company Information

Arihant Institute Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arihant Institute Limited
  • Ticker: 541401
  • Exchange: BSE
  • Founded: 1998
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: ₹59.059m
  • Shares outstanding: 9.33m
  • Website: https://www.arihantinstitute.com

Number of Employees


Location

  • Arihant Institute Limited
  • 201-202, Ratna High Street
  • 2nd Floor
  • Ahmedabad
  • Gujarat
  • 380013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
541401BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2018

Biography

Arihant Institute Limited engages in the professional education institute business in India. It offers coaching and educational guidance for students appearing for professional courses, such as chartered a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 12:52
End of Day Share Price2019/11/07 00:00
Earnings2019/03/31
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.