Global Education Limited

Consumer Defensive — Education & Training Services · NSE

₹142.58−₹1.92 (−1.33%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Global Education Limited provides educational and consultancy services in India. It operates through two segments, Educational Training and Development Activities; and Educational Business Support Activities.

IndustryEducation & Training Services

SectorConsumer Defensive

Employees326

Annual revenue₹94 Cr

How does it make money?

Turns over ₹94 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation. Each of its 326 employees supports ₹28.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹28.8 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 26.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 20.9% 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 +51% while net margin moved -22% 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+51%

Margin effect-22%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

• P/E of 27.5x already prices in growth
✗ P/E is 62% above its own historical median of 17.0x — expensive by its own standards
✗ P/B of 5.37x is a steep premium to book

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

45/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.5x

3Y Median

17.0x

40 monthly readings · mean 16.5x · range 6.3x–27.9x

Sector Median

43.3x

median of 4 sector peers

⚠️Current valuation is approximately 62% above its 3y median of 17.0x. 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 36% below the peer median of 43.3x.

vs. its own history

Expensive

17.0x median over 40 months · +62%

vs. sector peers

Cheap

43.3x median of 4 peers · -36%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.2x

PEG

5.02

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 26.8% 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 Attention2

Return on equity is falling
ROE has dropped from 34.6% to 20.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 46.2% to 26.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 16.8 points, from 59.1% to 42.3%.
🔴Receivables growing faster than salesFinancial
Receivables up 195% against revenue up 51% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 299% against revenue up 51% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.8% 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.
Cheaper than its peers
It trades 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 59.1% to 42.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 195% against revenue up 51%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 62% 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.
Returns on shareholder capital are falling
ROE has dropped from 34.6% to 20.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 11% a year✓ 14.8% CAGR
Latest reported year was -5.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 40%✓ 42.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 24%✓ 26.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 17.0x✗ 27.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

3 good · 4 neutral · 4 weak

Market Cap

₹726 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.5x

Fair

Fairly valued against the generic band

P/B Ratio

5.37x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.18

Profitable

Profitable on a per-share basis

ROE

20.9%

Strong

Strong capital efficiency

ROCE

26.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-5.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-10.6%

Falling

Profits are shrinking

Dividend Yield

0.70%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

14.7%

Good

Assets are working hard

Operating Margin

34.7%

Good

Healthy core-business profitability

Net Margin

28.0%

Good

Strong bottom-line conversion

Current Ratio

8.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.82

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

138.4 / 122.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

65.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹62 Cr	₹74 Cr	₹72 Cr	₹94 Cr	+14.8%
EBITDA	₹37 Cr	₹49 Cr	₹41 Cr	₹40 Cr	+2.7%
EBITDA Margin	59.1%	66.1%	56.2%	42.3%	—
PAT (Net Profit)	₹23 Cr	₹34 Cr	₹28 Cr	₹27 Cr	+5.5%
EPS	₹4.44	₹6.64	₹5.54	₹5.21	+5.5%
ROE	34.6%	38.0%	25.6%	20.2%	—
ROCE	46.2%	50.1%	33.6%	26.8%	—
Free Cash Flow	₹21 Cr	₹18 Cr	₹16 Cr	₹8 Cr	-27.8%

🟢 Revenue has grown at 14.8% a year over 3 years.

🟢 EBITDA has grown at 2.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 59.1% to 42.3% over 3 years (-16.8 pts).

🟢 PAT (Net Profit) has grown at 5.5% a year over 3 years.

🟢 EPS has grown at 5.5% a year over 3 years.

🔴 ROE has fallen from 34.6% to 20.2% over 3 years (-14.4 pts).

🔴 ROCE has fallen from 46.2% to 26.8% over 3 years (-19.4 pts).

🔴 Free Cash Flow has shrunk at 27.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹140 Cr

Total Liabilities

₹9 Cr

Total Debt

—

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹18 Cr

Capex

-₹10 Cr

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

17 Jul 2026

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 positive1 negative4 general

GLOBAL EDUCATION Share Price

Upstox, 16 Oct

Global Education Share: Private Schools Worth Buying 2026?

Univest, 18 Aug

Global Education Limited (NSE:GLOBAL) Passed Our Checks, And It's About To Pay A ₹0.50 Dividend

Simply Wall Street, 13 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Fusion Klassroom Edutech Limited Share Price

Business Today, 16 Oct

Virtual Global Education Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Global Education consolidated net profit declines 10.69% in the June 2026 quarter

Business Standard, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Revenue growth is negative (-5.3%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingRisk

WeakGrowth · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Valuation vs its own median of 17.0x · see Key things to watch ↑