Humming Bird Edu (542592)

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

Key Financials

Strengths

• ROCE of 41.69% indicates efficient use of capital, if sustained.
• Latest quarter is profitable: ₹1 Cr net profit on ₹5 Cr sales.
• Sales growth of 5.40% shows some revenue resilience despite the profit decline.
• Positive absolute trailing earnings (market cap/P/E ≈ ₹12.7 Cr) means the business is not a loss-making shell.

Concerns

• Profit growth is -16.33% while sales grew only 5.40%, showing margin pressure.
• Valuation is demanding: P/E of 31.95 and PEG of 5.92, with zero dividend yield.
• 52-week range of ₹12.80–₹628.40 suggests speculative price action, not value accumulation.
• Data is insufficient: no book value, ROE, debt/equity, or promoter holding, and the Piotroski F-Score is a weak 4/9.

AI Analysis

Let me start with a Graham rule: 'Price is what you pay; value is what you get.' At ₹628.40, Humming Bird Edu carries a market cap of ₹405 Cr against a P/E of 31.95. For that multiple, I need a business compounding earnings rapidly. What do I see? Sales growth of only 5.40% and, worse, profit down 16.33%. The PEG ratio of 5.92 tells me the market has already paid up growth that the business is not delivering. This is a slow grower wearing a fast-growth price tag. The 52-week range is the loudest warning: ₹12.80 to ₹628.40. That is a 49-fold move, not value discovery. I don't trust price charts; I trust balance sheets. But there is no book value, no ROE, no promoter holding, no dividend. Graham would say, 'If you don't know what you own, you own nothing.' The Piotroski F-Score of 4/9 reinforces my caution: weak financial health. Yes, ROCE of 41.69% is impressive. It suggests existing capital is productive. And the latest quarter is profitable—₹1 Cr on ₹5 Cr of sales. But one small quarter cannot justify ₹405 Cr of market value. I need to see this profitability repeated at scale and growing. I won't predict the stock's next move. I simply cannot value it prudently. A 31.95 P/E with negative earnings growth and no cash return is not an investment; it is a hope. I prefer a 'no' that is wrong occasionally over a 'yes' that costs me capital.

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