1. At a Glance
Humming Bird Education Ltd claims to be the only Olympiad-focused listed company in the world. It went from negative profits to positive partnerships—with CBSE, ASDC, HCL—and revenue more than doubled in 2 years. But… it’s also trading at a P/E of 101. A bird? A unicorn? Or just a quiz app in disguise?
2. Introduction with Hook
If EdTech is Hogwarts, Humming Bird is that Ravenclaw kid you forgot existed until they beat you in the final round of the quiz. From ₹2.4 Cr revenue in FY23 to ₹6.3 Cr in FY25, the company is flying (sort of). With CBSE recognition, Olympiad expansion, and B2G dreams under PMSHRI scheme, this bird is tweeting at the right ministries.
- 3-Year Profit CAGR: 51%
- ROCE FY25: 42.2%
- Operating Profit Margin: 5.7%
But wait… is it profit or just pocket change?
3. Business Model (WTF Do They Even Do?)
Humming Bird is a niche edu-player focused on:
- Olympiad Exams: Conducted across subjects, classes, and geographies.
- Educational Booklets: Study materials bundled with the Olympiads.
- Software & Licensing: For schools to run in-house evaluations.
- Strategic Collabs: CBSE, ASDC, HCL Jigsaw, Leo1.
Revenue = registrations + content + software usage.
Asset-light. Brand-heavy. Mission: turn every student into a future topper.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|---|
| FY22 | 0.71 | -0.37 | -0.38 | -52% | -0.62 |
| FY24 | 5.50 | -0.07 | 0.04 | -1.3% | -0.08 |
| FY25 | 6.29 | 0.36 | 0.72 | 5.72% | 0.90 |
In short:
- FY25 was the first clean “profitable” year
- Margins still razor thin
- EPS is real, but tiny
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹90.6 |
| Market Cap | ₹55.6 Cr |
| EPS (TTM) | ₹0.90 |
| P/E | 101x |
| Book Value | ₹3.74 |
| P/B Ratio | 24.3x |
Valuation Band Estimate:
| Method | FV Range (₹) |
|---|---|
| P/E (30x sustainable EPS ₹1.2) | ₹30–35 |
| EV/Revenue (5x FY25 sales) | ₹45–55 |
| Brand/IP premium adjusted | ₹55–65 |
Fair Value Range: ₹35 – ₹65
CMP is flying way past fundamentals unless unicorn logic applies.
6. What’s Cooking – News, Triggers, Drama
- CBSE Approves ICSI Olympiad – big credibility boost
- MoU with HCL for Critical Thinking Exams – likely ad-based free model
- Auto Skills Olympiad with ASDC – positioning as go-to evaluator
- EdFintech collab with Leo1 (Gajju Tech) – expanding into student lending/counseling
- B2G under PMSHRI scheme – schools are target, not consumers
If it sounds like they’re doing everything—yup, they are.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹0.61 | ₹0.61 | ₹0.61 |
| Reserves | ₹1.44 | ₹1.13 | ₹1.68 |
| Borrowings | ₹0 | ₹0 | ₹0 |
| Total Assets | ₹2.25 | ₹2.64 | ₹3.01 |
- Almost debt-free
- Tiny asset base
- Net Worth = ₹2.3 Cr
- Market Cap = 25x of Net Worth (!)
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
|---|---|---|---|---|
| FY23 | ₹0.07 | ₹0.01 | ₹0 | ₹0.09 |
| FY24 | ₹0.31 | ₹0.01 | -₹0.18 | ₹0.13 |
| FY25 | -₹1.53 | -₹0.14 | ₹0.00 | -₹1.67 |
FY25 cash flow flipped due to mismatch in receivables—classic Edu-biz cash trap. Topline may be growing but the bank balance… not so much.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 16.1% | 5.8% | 42.2% |
| ROE | 43% | 4% | 27.3% |
| Debtor Days | 3.0 | 21.9 | 9.3 |
| CCC | 3.0 | 21.9 | 9.3 |
| Working Cap Days | 54.1 | 3.9 | 3.5 |
Clean debtor management in FY25 helped. ROCE/ROE are solid—but too volatile to trend.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | OPM % | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY23 | ₹2.43 | 5.3% | ₹0.29 | 0.43 |
| FY24 | ₹5.50 | -1.3% | ₹0.04 | -0.08 |
| FY25 | ₹6.29 | 5.7% | ₹0.72 | 0.90 |
Steady growth in topline, but earnings still depend on how fast they convert MoUs to money.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE % | Sales (Cr) | PAT (Cr) | OPM % |
|---|---|---|---|---|---|---|
| NIIT Learning | 344 | 19.9 | 27.9 | 1653.3 | 235.8 | 21.5% |
| Vinsys IT | 375 | 18.3 | 28.6 | 211.7 | 30.0 | 18.7% |
| Aptech | 143 | 42.6 | 13.8 | 460.1 | 19.5 | 6.3% |
| Humming Bird | 90.6 | 101 | 42.2 | 6.3 | 0.72 | 5.7% |
P/E is higher than Aptech, NIIT, and Vinsys combined. Even Einstein wouldn’t answer that multiple.
12. Miscellaneous – Shareholding, Promoters
| Shareholders | FY25 |
|---|---|
| Promoters | 74.88% |
| Public | 25.12% |
| DIIs/FIIs | 0% |
| No. of Shareholders | 152 |
- Promoter stake unchanged for 5 years
- Public interest rising slowly
- No institutional money yet
- New partnerships with govt/CBSE = credibility, but not cash… yet
13. EduInvesting Verdict™
Humming Bird Education is flying high on paper—high ROCE, new B2G ventures, and strategic tie-ups. But behind the feathers:
- Profits are fragile
- Cash flows negative
- Valuation is out-of-syllabus
It’s not a scam; it’s just priced for perfection in an imperfect space. Until their partnerships translate into real revenues, this Olympiad champ remains a speculative play on “future brand power” rather than “present profitability.”
Metadata
– Written by EduInvesting Research | 13 July 2025
– Tags: Humming Bird Education, Olympiad Stock, CBSE Approval, EduTech India, Smallcap EdTech, Government Partnerships, High PE Stocks, Student Assessments, Critical Thinking
