Veranda Learning

  • Market Cap: Small Cap
  • Industry: Other Consumer Services
  • ISIN: INE0IQ001011
  • NSEID: VERANDA
  • BSEID: 543514
INR
240.90
6 (2.55%)
BSENSE

Jun 18

BSE+NSE Vol: 3.52 lacs

  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy
Comparison
Company
Score
Quality
Valuation
Financial
Technical
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NIIT Learning
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FlySBS Aviation
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 -15.56%, 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
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Veranda Learning should be less than 10%
  2. Overall Portfolio exposure to Other Consumer Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Consumer Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Veranda Learning for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Veranda Learning
14.69%
-0.27
56.62%
Sensex
-5.16%
0.44
11.83%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

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%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
68
Industry P/E
156
Price to Book Value
2.36
EV to EBIT
24.08
EV to EBITDA
15.67
EV to Capital Employed
1.99
EV to Sales
5.42
PEG Ratio
0.62
Dividend Yield
NA
ROCE (Latest)
8.28%
ROE (Latest)
3.45%
Loading Valuation Snapshot...
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

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

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
Icon
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
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 quarters
MOJO 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 Cr
MOJO 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 Cr
MOJO Watch
Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly
Highest at Rs 132.39 cr
in the last five quarters
MOJO 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 Cr
MOJO 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 quarters
MOJO 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 quarters
MOJO 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 periods
MOJO 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 periods
MOJO Watch
Company has been able to settle its Debtors faster

Debtors Turnover Ratio