1. At a Glance
Shanti Educational Initiatives Ltd (SEIL), a Chiripal Group company, wants to teach India. But in a sector where NIIT and Aptech are old professors, SEIL is more like the ambitious class monitor. With revenues growing 3.2x in FY25, zero dividends, and a P/E of 222, this is one school where the tuition fee might just be… investor returns?
2. Introduction with Hook
Imagine a school that triples its revenue but still borrows lunch money.
That’s SEIL in FY25.
- Revenue grew from ₹18.4 Cr to ₹58.9 Cr in just one year — a jaw-dropping 220% YoY growth
- Net profit doubled from ₹3.65 Cr to ₹7.06 Cr — but… wait for it…
- Stock trades at 221x earnings, making Harvard tuition look cheap in comparison
So what exactly is this company teaching, and who’s grading the report card?
3. Business Model (WTF Do They Even Do?)
SEIL isn’t your traditional classroom-in-a-building play. It’s more of a “schooling-as-a-service” venture.
Here’s what it does:
- Provides education services, including:
- Pre-school and K-12 curriculum development
- Learning materials and digital content
- Education management consulting
- Operates under brands like Shanti Asiatic Schools
- Runs franchise-based school networks, earning from brand licensing and service fees
- Parent: Chiripal Group, with roots in textiles and real estate (diversification goals? check.)
In short: SEIL builds school systems, not just schools.
4. Financials Overview
Let’s just say… FY25 results got straight A’s on paper.
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 10.99 | 18.41 | 58.99 |
| Operating Profit (₹ Cr) | 0.41 | 1.75 | 7.25 |
| Net Profit (₹ Cr) | 3.37 | 3.65 | 7.06 |
| OPM % | 3.7% | 9.5% | 12.3% |
| ROE % | 10.5% | 11.2% | 11.0% |
| EPS (₹) | 0.21 | 0.23 | 0.44 |
Notes:
- Big boost in topline but profitability still supported by ₹4.26 Cr in “Other Income”
- 220% sales growth sounds great… but is it sustainable?
5. Valuation
Let’s address the elephant in the classroom — the P/E of 221.
Using multiple models:
1. PE-based Valuation
- EPS FY25: ₹0.44
- Fair PE Range: 30x–45x (for niche education play with high growth)
- FV = ₹13 to ₹20
2. EV/EBITDA-based
- FY25 EBITDA ≈ ₹8.5 Cr
- EV/EBITDA multiple: 12–18x
- Implied Enterprise Value: ₹102–153 Cr
- After adjustments, FV per share = ₹16–₹24
Current Market Price: ₹97
Verdict: You’re paying for a PhD while the company’s still in kindergarten.
6. What’s Cooking – News, Triggers, Drama
- Q4 FY25 slipped into loss: ₹–0.47 Cr net loss despite decent revenue
- Letter of Comfort: Issued to subsidiary Uniformverse Pvt Ltd (₹4.5 Cr facility) — sounds like an internal tuition transfer
- SEBI slap alert: Penalties of ₹3.89 lakh for delayed filings
- Trading window shut: Awaiting Q1 FY26 results, suspense level: Board Exam
Near-term triggers:
- New school openings or franchise expansion
- Performance of Uniformverse subsidiary
- First sign of dividend = maturity signal?
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 16.1 | 16.1 | 16.1 |
| Reserves | 44.2 | 47.6 | 54.7 |
| Total Borrowings | 2.2 | 1.5 | 8.0 |
| Fixed Assets | 18.2 | 19.2 | 22.4 |
| Investments | 9.3 | 9.4 | 9.4 |
| Other Assets | 39.5 | 40.7 | 59.6 |
Key Takeaways:
- Borrowings quintupled in FY25. Reason? Expansion, or just pocket money from lenders?
- Asset base has grown — likely school infra or digital content IP.
8. Cash Flow – Sab Number Game Hai
| Cash Flow Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash Flow | +0.46 | –1.11 | –3.11 |
| Investing Cash Flow | +1.46 | +0.32 | –1.27 |
| Financing Cash Flow | –0.91 | –0.93 | +6.47 |
| Net Cash Flow | +1.01 | –1.72 | +2.09 |
Red Flags:
- Negative OCF for two years in a row. Profit is accounting, cash is real.
- Positive financing cash = fresh debt inflow
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | — | 8.3% | 14.1% |
| ROE % | — | 11.2% | 11.0% |
| Working Capital Days | 91 | 53 | 48 |
| CCC (Cash Conversion Cycle) | 239 | 214 | 89 |
| Debtor Days | 66 | 31 | 59 |
| Inventory Days | 260 | 233 | 96 |
Interpretation:
- CCC improvement from 239 to 89 days is the real topper here
- Still, high inventory days? This isn’t a warehouse business. Need a closer look.
10. P&L Breakdown – Show Me the Money
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | 10.99 | 18.41 | 58.99 |
| Operating Profit | 0.41 | 1.75 | 7.25 |
| Other Income | 4.83 | 3.96 | 4.26 |
| PBT | 4.72 | 4.96 | 9.78 |
| Net Profit | 3.37 | 3.65 | 7.06 |
Yes, “Other Income” is still pulling its weight.
11. Peer Comparison
| Company | CMP ₹ | P/E | Sales (₹ Cr) | PAT (₹ Cr) | ROCE % | OPM % |
|---|---|---|---|---|---|---|
| NIIT Learning | 337.6 | 19.6 | 1653 | 235.8 | 27.9% | 21.5% |
| Aptech | 142.5 | 42.4 | 460 | 19.5 | 13.9% | 6.3% |
| Vinsys | 361 | 17.6 | 211.7 | 30.0 | 28.6% | 18.7% |
| Shanti | 97.2 | 221.7 | 59.0 | 7.1 | 14.1% | 12.3% |
Conclusion: SEIL is trading like it’s already Ivy League. But it’s just about cleared 12th grade.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Promoter Holding | 64.5% | 64.5% | 64.5% |
| FII Holding | 18.4% | 19.0% | 18.5% |
| Public Holding | 17.1% | 16.5% | 17.1% |
- Promoter holding stable = ✅
- FII still interested = ✅
- Public still curious = ✅
13. EduInvesting Verdict™
Shanti Educational Initiatives Ltd is growing fast — no doubt. But it’s also:
- Dependent on Other Income
- Debt-financing expansion
- Bleeding cash from operations
With a P/E of 221, it’s priced for perfection — but the fundamentals are still mid-tier.
Think of SEIL like a top student with 100% attendance but no homework submission. You want to root for them, but maybe don’t hand them the class trophy yet.
Metadata
– Written by EduInvesting | July 20, 2025
– Tags: Shanti Educational Initiatives, EdTech, School Franchising, Chiripal Group, Smallcap Watch, Education Stocks, Screener Analysis, P/E Bubble
