Veranda Learning Solutions Limited

Consumer Defensive — Education & Training Services · NSE

₹39.68−₹2.08 (−4.98%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Veranda Learning Solutions Limited operates as an education company in India.

IndustryEducation & Training Services

SectorConsumer Defensive

Annual revenue₹475 Cr

How does it make money?

Turns over ₹475 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹41 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of 14.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +194% while net margin moved -145% 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+194%

Margin effect-145%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.95 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

87/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

2.4x

Sector Median

43.3x

median of 4 sector peers

🟢Against its sector it trades 95% below the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

43.3x median of 4 peers · -95%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -41.4% to 41.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -25.9% to 11.0%.
Return on capital is rising
ROCE has improved from -10.1% to 14.1%.

🔴 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

🔴Receivables growing faster than salesFinancial
Receivables up 511% against revenue up 194% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 56% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.69 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -41.4% to 41.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 95% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹92 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 511% against revenue up 194%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 32% a year✓ 43.3% CAGR
Latest reported year was 7.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 39%✓ 41.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹92 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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 · 5 neutral · 0 weak

Market Cap

₹383 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.4x

Cheap

Cheap against the generic band

P/B Ratio

0.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹16.79

Profitable

Profitable on a per-share basis

ROE

11.0%

Moderate

Moderate capital efficiency

ROCE

14.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

7.4%

Modest

Modest growth

Profit Growth (YoY)

142.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹92 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

25.1%

Good

Healthy core-business profitability

Net Margin

25.8%

Good

Strong bottom-line conversion

Current Ratio

0.69

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.95

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

140.5 / 200.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

7.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹161 Cr	₹357 Cr	₹351 Cr	₹475 Cr	+43.3%
EBITDA	-₹67 Cr	₹50 Cr	₹117 Cr	₹197 Cr	—
EBITDA Margin	-41.4%	14.0%	33.4%	41.5%	—
PAT (Net Profit)	-₹79 Cr	-₹81 Cr	-₹247 Cr	₹106 Cr	—
EPS	₹-13.65	₹-12.2	₹-34.73	₹11.73	—
ROE	-25.9%	-21.5%	-96.3%	11.0%	—
ROCE	-10.1%	-1.3%	-6.2%	14.1%	—
Total Debt	₹306 Cr	₹583 Cr	₹660 Cr	₹382 Cr	+7.7%
Free Cash Flow	-₹76 Cr	₹13 Cr	₹17 Cr	₹92 Cr	—

🟢 Revenue has grown at 43.3% a year over 3 years.

🟢 EBITDA has turned positive, from -₹67 Cr to ₹197 Cr.

🟢 EBITDA Margin has risen from -41.4% to 41.5% over 3 years (+82.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹79 Cr to ₹106 Cr.

🟢 EPS has turned positive, from ₹-13.65 to ₹11.73.

🟢 ROE has risen from -25.9% to 11.0% over 3 years (+36.9 pts).

🟢 ROCE has risen from -10.1% to 14.1% over 3 years (+24.2 pts).

🔴 Total Debt has grown at 7.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹76 Cr to ₹92 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,832 Cr

Total Liabilities

₹874 Cr

Cash & Equivalents

₹30 Cr

Operating Cash Flow

₹106 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

10.9%

Insider Holding

52.7%

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 negative5 general

Veranda Learning Solutions Upper Circuit Today: Price, Data and Peers

Univest, 14 Oct

After 100% up in 6 months, company set for spin off - Check record date, new entity, shareholders benefits, ESOPs

Livemint, 05 Oct

Veranda Learning Solutions Ltd Locks at Upper Circuit With 5% Gain Amid Delivery Drop and Thin Liquidity

MarketsMojo, 16 Oct

Veranda Learning discloses JSCEL pledge of subsidiary shares for ₹143 crore NCDs

scanx.trade, 13 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Fusion Klassroom Edutech Limited Share Price

Business Today, 16 Oct

Veranda Learning Gets NCLT Approval to Split Off Commerce Division

Sahi, 24 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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 · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑