1. At a Glance
MPS Ltd is a ₹4,823 Cr smallcap that does B2B content and platform solutions for global education and research publishers. With a 30.8% ROE, 41.4% ROCE, zero debt, and 95% dividend payout, it’s the anti-Byju’s. While everyone’s raising flashy funding, MPS is raising profits.
2. Intro with Hook
In a world where edtech means burning VC money, laying off employees, and giving free tablets no one wants…
Here’s a company:
- That grew profit at 22% CAGR over 5 years
- Has no debt, no scandals
- Pays out ₹50/share dividend
- And still trades at just 33x earnings
Ladies and gentlemen, meet MPS Ltd — the boring B2B operator powering education giants, while sipping profits quietly.
3. WTF Do They Even Do? (Business Model)
MPS offers a “picks and shovels” model to the global education, publishing, and learning industries.
📚 Key Segments:
- Content Solutions (53% rev): Editorial, design, digital learning content
- Platform Solutions: SaaS products for content delivery, learning analytics
- eLearning Services: Courseware dev, AI-driven assessments
- AI Play: Acquisition of Research Square AJE ($8.4M) for AI-led academic publishing tools
💼 Customers? Big education publishers and research platforms.
📦 Model? B2B recurring revenue.
💡 USP? Tech + content + delivery under one roof.
4. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 449 | 501 | 545 | 727 |
| Net Profit (₹ Cr) | 87 | 109 | 119 | 149 |
| OPM % | 28% | 31% | 31% | 29% |
| ROE | 25% | 28% | 30% | 31% |
| Dividend Payout | 59% | 31% | 108% | 95% |
🧠 5Y EPS CAGR = 22%
💰 Dividend Yield = 2.94%
5. Valuation – Is It Cheap, Meh, or Crack?
Let’s slice it clean:
- Current Price: ₹2,820
- TTM EPS: ₹87
- P/E: 32.4x
- Book Value: ₹280 → P/B = 10.1x
- ROE: 31%
🧮 Fair Value Calculation:
- EPS growth potential = 18–20%
- Reasonable P/E range = 28x–35x
- FV Range = ₹2,436 – ₹3,045
So, current price is… fair to slightly rich, but with strong dividend protection.
6. What’s Cooking – News, Triggers, Drama
🔧 Subsidiary mergers to simplify structure (May 2025)
📍 New Singapore branch for APAC growth
💸 Acquired AJE LLC – an academic editing & AI platform (Feb 2024)
📈 Strong guidance for FY26 (expected 15%+ growth)
🎯 Zero controversy, just laser focus.
7. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Total Liabilities | ₹497 Cr | ₹559 Cr | ₹736 Cr | ₹695 Cr |
| Reserves | ₹350 Cr | ₹410 Cr | ₹443 Cr | ₹461 Cr |
| Debt | ₹12 Cr | ₹8 Cr | ₹5 Cr | ₹4 Cr |
📉 Debt is basically extinct.
🔐 Cash is king here.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY24 | ₹118 Cr | ₹25 Cr | ₹-93 Cr | ₹50 Cr |
| FY25 | ₹101 Cr | ₹-6 Cr | ₹-140 Cr | ₹-45 Cr |
💸 Most of the cash goes to dividends and some inorganic bets (like AJE).
Still, CFO is strong and consistent.
9. Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROCE | 41.4% ✅ |
| ROE | 30.8% ✅ |
| OPM | 29–31% ✅ |
| Debtor Days | 59 ✅ |
| P/E | 33.4 |
| P/B | 10.1 |
| Dividend Yield | 2.94% ✅ |
This is the dream smallcap — not flashy, but efficient as hell.
10. P&L Breakdown – Show Me the Money
- FY25 Revenue = ₹727 Cr
- Operating Profit = ₹211 Cr
- Net Profit = ₹149 Cr
- EPS = ₹87
- Final Dividend = ₹50
🎯 Consistency is the flex. 12 straight years of profit, margin stability, and earnings compounding.
11. Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Sales | PAT |
|---|---|---|---|---|---|
| MPS | 33.4 | 30.8% | 29% | ₹727 Cr | ₹149 Cr |
| Veranda Learning | NEG | -78% | -248% | ₹470 Cr | ₹-14 Cr |
| Addictive Learn | 23.5 | 13% | 23% | ₹75 Cr | ₹10 Cr |
| Jetking | 39.8 | 8% | -0.9% | ₹21 Cr | ₹-1.3 Cr |
Verdict: MPS is the only grown-up in this kindergarten.
12. Misc – Shareholding, Promoters, etc.
- 🧑 Promoters: 68.34% (Stable since 2022)
- 🏦 FIIs: Down from 4.7% to 1.98% (minor exits)
- 🧑🎓 Public: 28.36% (Uptrend)
- 🧮 Total Shareholders: 26,119 and growing
- 🧠 Management: Low noise, high focus
13. EduInvesting Verdict™
MPS Ltd is what every edtech startup pretends to be:
Profitable ✅
Global ✅
AI-driven ✅
Dividend-paying ✅
Zero-debt ✅
It doesn’t need funding. It funds you.
Verdict: If HUL had an edtech cousin, it’d be MPS. Silent compounder. Just don’t expect front-page headlines — they’re too busy delivering actual earnings.
✍️ Written by Prashant | 📅 11 July 2025
Tags: MPS Ltd, EdTech India, Dividend Stocks, Smallcap Compounders, ROE 30%, AI Education Platforms, B2B EdTech, NSE Stocks, Content Solutions, Research Publishing India
