MT Educare (MTEDUCARE)
Asset PlayScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1.87 |
| Market Cap | ₹13.51 Cr |
| P/E Ratio | 0 |
| ROCE | -3.82% |
| ROE | 35.51% |
| Dividend Yield | 0% |
| Profit Growth | 60.71% |
| Debt/Equity | — |
| Sales Growth | -28.1% |
| Promoter Holding | 59.12% |
| 52-Week Range | ₹1.17 — ₹2.42 |
| Sector | Other Consumer Services |
| Book Value | ₹5.84 |
Strengths
- Trades at a 77% discount to book value: P/B of 0.23 versus book value of ₹5.84 per share.
- Promoter holding is high at 59.12%, aligning promoter interests with minority shareholders.
- Book value provides a large stated asset cushion if the business can stop the cash drain.
- Piotroski F-score of 5/9 is mediocre but not deeply distressed.
Concerns
- Sales are collapsing, down 42.21%, and the latest quarter lost ₹2 Cr on just ₹7 Cr of revenue.
- ROCE is negative at -3.82%, indicating the operating business is not earning a return on capital.
- Reported ROE of 35.51% and profit growth of 60.71% are misleading because they are calculated from a negative earnings base.
- No dividend and insufficient data for a FairStock score make this a speculative, information-light situation.
AI Analysis
At ₹1.36, MT Educare looks like a Graham cigar butt: cheap enough to take a puff, but not a business I would want to own for years. The market cap is just ₹10 Cr, while book value is ₹5.84 per share. That means I can buy ₹5.84 of stated equity for ₹1.36—a P/B of 0.23. But price is only half the story. The other half is earning power, and here the numbers are troubling. Sales are down 42.21%, and the latest quarter shows ₹7 Cr of sales with a ₹2 Cr net loss. Operating capital returns are negative at -3.82% ROCE, so the business is not creating value from its assets. The reported ROE of 35.51% and profit growth of 60.71% cannot be trusted as signs of health; they come from a distorted, negative earnings base. In the education industry, a brand and curriculum can be a moat, but a 42% revenue collapse tells me MT Educare has no such moat today. Financial health is uncertain: debt/equity is N/A, so I cannot assume a clean balance sheet. Promoter holding of 59.12% is a positive—they own the pain with me. The Piotroski score of 5/9 is average, not awful. This is not a turnaround I can call yet; it is an asset play. I would only consider it if the quarterly cash burn does not keep eating into book value and if revenue stabilizes. Otherwise, a low price can always get lower.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer