📌 At a Glance
Ascensive Educare Ltd is a Gujarat-based skill development company riding India’s “Skilled India” wave. From ₹3 Cr sales in FY17 to ₹35 Cr in FY25, it’s grown fast — but 223 debtor days, zero dividends, and falling promoter holding add some real homework for investors.
1. 🎬 What Do They Even Do?
- AEL is in the vocational training and skill development business
- Works with Central + State Governments + Industry Associations
- Offers services like:
- Training workshops
- Job-oriented courses
- Placement assistance
- Think of it as the “BYJU’S for government skill programs”, minus the unicorn hype and with actual profits
2. 💰 Financials — Solid Growth, but Margins Need Coaching
| Metric | FY21 | FY23 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 10.04 | 16.28 | 35.35 |
| Net Profit (₹ Cr) | 0.44 | 1.11 | 2.61 |
| OPM (%) | 14.2% | 12.6% | 10.4% |
| ROE (%) | 17.0% | 17.0% | 18.7% |
| ROCE (%) | 15.9% | 19.7% | 20.6% |
🎯 3-Year Sales CAGR: 39%
🎯 3-Year PAT CAGR: 47%
😬 Declining OPM = Red Flag or Scale Pain?
3. 📊 Valuation — Is It Reasonably Priced?
| Valuation Metric | Value |
|---|---|
| CMP | ₹17.1 |
| P/E | 26.8x |
| Book Value | ₹3.81 |
| P/B | 4.48x |
| Market Cap | ₹69.9 Cr |
| TTM EPS | ₹0.64 |
| TTM P/E (actuals) | 26.7x |
🧮 Fair Value Calculation
Let’s be generous and assume:
- Normalized EPS in FY26: ₹1.1 (based on 70% PAT growth moderation)
- Forward P/E range: 20x–25x
👉 Fair Value = ₹22–₹28 range
(Currently at ₹17.1, so it’s… fair-ish)
4. 🔎 What’s Cooking?
- 🧨 FY25 Result:
- Sales up 69% YoY
- PAT up 98% YoY
- EPS ₹5.97 — Wait, what? That’s different from Screener’s EPS. Likely one-off or mismatch between standalone/consolidated.
- 🎙️ Earnings Call in May ’25 — showed investor push.
- 🚨 Promoter holding fell from 72.7% to 52.2% in 2 years. Not a great sign.
5. 💼 Balance Sheet — Healthy, But Some Grit
| Metric | FY25 |
|---|---|
| Net Worth | ₹15.6 Cr |
| Debt | ₹8.39 Cr |
| Debt/Equity | ~0.54x |
| CWIP | ₹4.46 Cr |
✅ Capex incoming? CWIP suggests expansion
⚠️ Borrowings jumped in FY25 — keep an eye
6. 💸 Cash Flow — The Weakest Link
| Metric | FY25 |
|---|---|
| CFO | -₹2.64 Cr |
| FCF | Deeply Negative |
| Debtor Days | 223 Days |
💀 That’s high working capital stress — despite net profit, no cash
7. 📐 Ratios — Good Return, Bad Collection
| Ratio | FY25 |
|---|---|
| ROE | 18.7% |
| ROCE | 20.6% |
| P/E | 26.8x |
| OPM | 10.4% |
| Debtor Days | 223 days |
| Dividend | 0% |
🔥 Great return metrics
❄️ Zero dividends + huge debtor cycle = risk for smallcaps
8. 🆚 Peer Comparison — Underdog in the Tutoring Arena
| Company | ROCE | PAT Growth | P/E | Mcap (Cr) |
|---|---|---|---|---|
| Vinsys IT | 28.6% | 28.2% | 18.7x | ₹560 |
| Aptech | 13.8% | 13.6% | 47x | ₹916 |
| NIIT Learning | 27.9% | -9.5% | 19.8x | ₹4,681 |
| Ascensive | 20.6% | 98% | 26.8x | ₹69.9 |
🏆 In growth metrics, Ascensive punches above its weight
📉 In size and liquidity, it’s still a microcap with limited visibility
9. 🧾 Shareholding — The Great Exit?
| Date | Promoter Holding |
|---|---|
| Mar 2022 | 72.7% |
| Mar 2025 | 52.2% |
🕵️ ~20% stake offloaded in 3 years — dilution or dumping?
10. 🧠 EduInvesting Verdict™
“Skilled in profit, but cashless in reality.”
Ascensive Educare is a rare SME that:
- Makes real profits ✅
- Has government contracts ✅
- Shows strong topline growth ✅
But the 👎 list is real too:
- Weak cash flows
- High debtors
- No dividend
- Promoter dilution
If it fixes working capital — it might actually graduate to mid-cap someday. Till then? A microcap thesis that needs tutoring in cash flow discipline.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Ascensive Educare, SME stock, skill development stocks, BSE SME, education sector India, microcap, EduInvesting
