CL Educate (CLEDUCATE)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹48.25, I'm being asked to pay roughly book value for a business that loses money. That's not a margin of safety—that's a warning. The latest quarter shows ₹120 Cr in sales but a ₹17 Cr net loss, meaning every rupee of revenue is being burned. With ROE at -12.67%, management is destroying shareholder value, not compounding it. The 72.54% sales growth catches my eye, but profit growth of -540.89% tells me this expansion is unprofitable. Graham would say: don't confuse a growing top line with a growing business. The Piotroski score of 4/9 reinforces my suspicion: weak fundamentals, poor profitability, and a deteriorating financial position. Debt-to-equity at 1.04 is manageable but not comfortable, especially when earnings are negative and there's no dividend to reward patient shareholders. Promoter holding at 51.78% is positive—at least their interests are tied to mine. And ROCE at 2.93% is far too low; I could earn more in a fixed deposit without the operational headaches. Is there an asset play here? Book value is ₹46.59, and the stock trades at ₹48.25, a 3.6% premium. But unless that book value is rock-solid and recoverable, a price near book is no bargain. Education in India has long-term demand, but this company needs to prove it can convert that demand into profits. Historically, I've avoided businesses that lose money regardless of growth. This looks like a turnaround candidate at best—one that requires evidence of cost discipline, improving margins, and a plan to reduce debt before I'd consider investing. The numbers, as they stand, fail my test.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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