Veranda Learning (VERANDA)

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

Key Financials

Strengths

• Sales growth of 17.80% and latest quarter sales of ₹117 Cr show business expansion.
• Profit growth of 105.38% and quarterly net profit of ₹13 Cr indicate improving momentum.
• Piotroski F-Score of 6/9 points to some recent improvement in fundamentals.
• Debt/Equity of 0.42 is manageable and not reckless.
• Book value of ₹70.68 provides a tangible asset base, with P/B at 2.16.

Concerns

• ROE of 1.48% and ROCE of -12.96% show poor and negative returns on capital.
• P/E of 66.87 leaves no margin of safety despite the growth narrative.
• Promoter holding of only 33.96% and zero dividend yield weaken minority shareholder alignment.
• FairStock Score of 19/100 flags the stock as risky; PEG of 1.09 over-extrapolates one year's profit growth.

AI Analysis

At ₹152.54, Veranda Learning has a market cap of ₹1,749 Cr and a P/E of 66.87. That is not a value price; it is a hope price. I like growth, but I like it when it is attached to a business that earns a strong return on invested capital. Here the numbers fail that test. Sales growth of 17.80% is decent, and a reported profit growth of 105.38% sounds impressive, but from a very low base. The more reliable figures are the 1.48% ROE and the -12.96% ROCE. A firm earning 1.48% on equity and negative returns on capital is not compounding wealth; it is consuming capital. The latest quarter, with sales of ₹117 Cr and net profit of ₹13 Cr, gives some reason to hope. But hope is not an investment framework. Graham would ask what the assets earn, not what the market expects. Book value of ₹70.68 is modest; the price at 2.16 times book gives no margin of safety. The balance sheet is not alarming: debt/equity is 0.42, and the Piotroski F-score of 6/9 indicates some improving fundamentals. But I also see promoter holding of only 33.96%, zero dividends, and an e-learning business whose economics, as shown by these returns, do not reveal a moat. A PEG ratio of 1.09 simply assumes that 105% profit growth continues, which is a dangerous extrapolation from a single year. If this is a turnaround, the stock already prices in successful execution. I can deploy my capital to safer places. For me, Veranda is a watchlist candidate, not a purchase.

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