Ascensive Educare Limited

Consumer Defensive — Education & Training Services · BSE

₹15.89₹0.00 (0.00%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

The 60-second version of Ascensive Educare Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ascensive Educare Limited provides skill development training services in India. The company offers online management training programs in various specializations, such as marketing, finance, operations, and human resources.

IndustryEducation & Training Services

SectorConsumer Defensive

Employees65

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 65 employees supports ₹90.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹90.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.7% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +261% while net margin moved -15% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+261%

Margin effect-15%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 227.0x is demanding — it needs sustained high growth to justify
✗ P/E is 338% above its own historical median of 51.8x — expensive by its own standards

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

227.0x

3Y Median

51.8x

40 monthly readings · mean 139.2x · range 11.3x–341.7x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 338% above its 3y median of 51.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 425% above the peer median of 43.3x.

vs. its own history

Expensive

51.8x median over 40 months · +338%

vs. sector peers

Expensive

43.3x median of 4 peers · +425%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

9.9x

PEG

4.99

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 4797% over 3 years.
Return on capital is rising
ROCE has improved from 20.7% to 28.2%.
High return on capital employed
ROCE of 28.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 113% over 3 years, from ₹4 Cr to ₹8 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.3x to 5.0x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 43% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹7 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 338% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 40% a year✓ 53.3% CAGR
Latest reported year was 37.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 28.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹73 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

227.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.84x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.07

Profitable

Profitable on a per-share basis

ROE

19.7%

Strong

Strong capital efficiency

ROCE

28.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

37.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-42.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

11.7%

Good

Assets are working hard

Operating Margin

8.0%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.5 / 17.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹21 Cr	₹35 Cr	₹59 Cr	+53.3%
EBITDA	₹2 Cr	₹3 Cr	₹4 Cr	₹7 Cr	+49.6%
EBITDA Margin	13.6%	12.3%	11.4%	12.6%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹3 Cr	₹3 Cr	+45.5%
EPS	₹0.34	₹0.33	₹0.06	—	—
ROE	15.7%	10.7%	16.8%	18.0%	—
ROCE	20.7%	16.7%	22.0%	28.2%	—
Total Debt	₹4 Cr	₹2 Cr	₹8 Cr	₹8 Cr	+28.6%
Free Cash Flow	₹0 Cr	-₹1 Cr	-₹7 Cr	₹7 Cr	+265.8%

🟢 Revenue has grown at 53.3% a year over 3 years.

🟢 EBITDA has grown at 49.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.6% over 3 years.

🟢 PAT (Net Profit) has grown at 45.5% a year over 3 years.

🟢 ROE has risen from 15.7% to 18.0% over 3 years (+2.3 pts).

🟢 ROCE has risen from 20.7% to 28.2% over 3 years (+7.5 pts).

🔴 Total Debt has grown at 28.6% a year over 3 years.

🟢 Free Cash Flow has grown at 265.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹36 Cr

Total Liabilities

₹17 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.3%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive5 general

Ascensive Educare informs BSE of non-applicability of RPT disclosure rules

scanx.trade, 16 Oct

Ascensive Educare Limited Share Price

Upstox, 25 Sept

Ascensive Educare Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Drone Destination (NSEI:DRONE) - Stock Analysis

Simply Wall Street, 15 Oct

Ascensive Educare Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Ascensive receives tribal youth skill development mandate in Maharashtra

Business Standard, 08 SeptOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑