Western Overseas Global Solutions Limited

Consumer Defensive — Education & Training Services · BSE

₹21.15₹0.00 (0.00%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

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, 6:55 pm

Understanding the Business

Company site ↗

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

What does this company do?

Western Overseas Global Solutions Limited provides educational and immigration advisory services in India.

IndustryEducation & Training Services

SectorConsumer Defensive

Annual revenue₹20 Cr

How does it make money?

Turns over ₹20 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹28 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.8% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +117% while net margin moved +180% 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+117%

Margin effect+180%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

81/ 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

4.7x

1.0Y Median

5.4x

12 monthly readings · mean 5.5x · range 4.3x–7.2x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 1.0y median of 5.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 89% below the peer median of 43.3x.

vs. its own history

Fair

5.4x median over 12 months · -14%

vs. sector peers

Cheap

43.3x median of 4 peers · -89%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

1.8x

PEG

0.06

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 12.4% to 27.8% over 3 years.
High return on capital employed
ROCE of 22.2% 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 · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 363% over 3 years, from ₹0 Cr to ₹2 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 2623% against revenue up 117% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.2% 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.
Margin expansion has further to run
EBITDA margin has risen from 12.4% to 27.8%. 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 89% 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?

Sales are being booked faster than collected
Receivables are up 2623% against revenue up 117%. 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 22% a year✓ 29.4% CAGR
Latest reported year was -10.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.7x

Cheap

Cheap against the generic band

P/B Ratio

0.69x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.54

Profitable

Profitable on a per-share basis

ROE

21.8%

Strong

Strong capital efficiency

ROCE

22.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

-10.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

23.4%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

14.5%

Good

Assets are working hard

Operating Margin

16.4%

Good

Healthy core-business profitability

Net Margin

13.5%

Good

Strong bottom-line conversion

Current Ratio

4.07

Comfortable

Healthy short-term liquidity

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

19.8 / 18.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

68.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹15 Cr	₹23 Cr	₹20 Cr	+29.4%
EBITDA	₹1 Cr	₹2 Cr	₹4 Cr	₹6 Cr	+69.6%
EBITDA Margin	12.4%	15.4%	17.1%	27.8%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹2 Cr	₹3 Cr	+82.4%
EPS	₹0.75	₹1.98	₹3.68	—	—
ROE	13.7%	26.6%	33.9%	14.7%	—
ROCE	20.8%	41.3%	33.0%	22.2%	—
Total Debt	₹0 Cr	₹3 Cr	₹4 Cr	₹2 Cr	+66.7%
Free Cash Flow	-₹0 Cr	-₹3 Cr	-₹5 Cr	-₹3 Cr	—

🟢 Revenue has grown at 29.4% a year over 3 years.

🟢 EBITDA has grown at 69.6% a year over 3 years.

🟢 EBITDA Margin has risen from 12.4% to 27.8% over 3 years (+15.5 pts).

🟢 PAT (Net Profit) has grown at 82.4% a year over 3 years.

🟢 ROE has risen from 13.7% to 14.7% over 3 years (+1.0 pts).

🟢 ROCE has risen from 20.8% to 22.2% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 66.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹22 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.1%

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

6 general

Western Overseas seeks approval to rename entity, expand scope at AGM

scanx.trade, 18 Oct

Western Overseas Partners With UDIT Madrid For Higher Education Student Recruitment

Sahi, 19 Sept

Western Overseas Study Abroad Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

India explores China’s Hotan corridor as Pakistan airspace ban drags on

Livemint, 29 Sept

ONGC and bp sign Technical Services Contract to enhance production from fields in the Western Offshore Basin

bp global, 25 Jun

Western Overseas Study Abroad Ltd partners with RACUS GROUP for student recruitment

scanx.trade, 03 Jul

Watch Items

Revenue growth is negative (-10.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑