Ironwood Educa (508918)

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter shows positive net profit of ₹5 Cr on sales of ₹30 Cr, indicating recent operational profitability.
• Piotroski F-Score of 6/9 suggests some financial health signals despite the poor profitability ratios.
• Sales growth of 3048.94% and profit growth of 1000% reflect strong recent momentum, though the base is clearly tiny.
• Book value of ₹6.57 provides some per-share asset backing, even if the return on that book is negative.

Concerns

• ROE of -86.78% and ROCE of -0.88% indicate severe capital inefficiency and potential value destruction.
• Reported P/E of 24.10 is hard to reconcile with latest-quarter annualised profit of roughly ₹20 Cr against a ₹20 Cr market cap, raising earnings reliability concerns.
• Current price of ₹25.90 is below the stated 52-week range of ₹32.27-₹57.00, suggesting a sharp breakdown or data anomaly.
• No dividend, undisclosed promoter holding, and an insufficient FairStock Score leave little transparency for a retail investor.

AI Analysis

Let me begin with what the numbers tell me, and also with what they don't. Ironwood Educa is a ₹20 crore microcap trading at ₹25.90. The latest quarter shows sales of ₹30 crore and net profit of ₹5 crore. On the surface, that would make a ₹20 crore company look absurdly cheap. But the reported P/E is 24.10, which means the trailing earnings used by the market are nowhere near that quarterly run-rate. I cannot reconcile those two facts, and in investing, what I cannot understand I avoid. The return on equity is -86.78% and ROCE is -0.88%. That is not the profile of a business with a durable moat. It is a business that has been burning shareholders' capital. A sales growth of 3048.94% and profit growth of 1000% sound spectacular, but they are meaningless starting from a tiny or loss-making base; Mr. Market loves such percentages, but Charlie and I ignore them. The book value is ₹6.57, so at ₹25.90 I am paying 3.94 times book for a negative return on that book. There is no dividend, promoter holding is not disclosed, and the FairStock score is unavailable. Even the 52-week range of ₹32.27 to ₹57.00 is above the current price, suggesting either a stale range or a severe breakdown. The Piotroski F-score of 6/9 is mildly encouraging, but it does not compensate for negative profitability economics. This is not a wonderful business at a fair price; it is an unproven microcap with inconsistent numbers and no margin of safety. I would rather be wrong and miss a spectacular rally than be right and lose capital on a company I cannot value. Pass.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer