MT Educare Ltd (MTEDUCARE) AI Stock Analysis

• Market Cap: ₹101.84M
• Dividend Yield: N/A
• Average Volume (3M): 4.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -3.63%
• EPS Growth: 24.10%
• Country: IN
• Employees: 135
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): 0.20
• Shares Outstanding: 72,228,060
• 10 Day Avg. Volume: 6,488
• 30 Day Avg. Volume: 4,559
• PEG Ratio: -0.04
• Price to Book (P/B): -8.66
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -10.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹1.50 ▼(-13.79% Downside)

The score is primarily constrained by weak financial fundamentals—persistent losses, negative equity, and strained cash generation. Technicals are also bearish with the stock below major moving averages and negative MACD, despite oversold readings. Valuation is penalized by unprofitability (negative P/E) and the absence of a dividend yield.

Positive Factors

Diverse revenue streams

Multiple program types (long-duration classroom, crash/revision courses, and learning-material sales) provide recurring and staggered revenue across academic cycles. This diversification reduces reliance on any single enrollment wave and supports steadier cash inflows over months.

Established test-prep focus and brands

Operating in test-prep and supplementary education targets durable, exam-driven demand in India. Brand recognition and an on-ground classroom network create local barriers to entry, supporting repeat enrollments and a stable addressable market over the medium term.

Improving EPS trend

Reported EPS growth indicates improvement in per-share earnings metrics, suggesting better operating leverage or cost control versus prior periods. If sustained, this trend can help rebuild retained earnings and improve financial flexibility over several quarters.

Negative Factors

Weak balance sheet / negative equity

Negative shareholders' equity and a high debt profile materially limit strategic flexibility. Persistent negative equity raises refinancing costs, increases dilution risk on capital raises, and heightens insolvency vulnerability if operating performance doesn't improve sustainably.

Poor cash generation

Ongoing negative operating cash flow and falling free cash flow reduce liquidity and force reliance on external funding. Weak cash generation undermines the ability to reinvest in centers or digital capabilities and increases refinancing risk over the medium term.

Declining revenues and margins

Sustained revenue declines alongside shrinking gross margins point to weakening demand or pricing pressure. This erodes scale economics, makes fixed costs harder to cover, and prolongs losses, complicating any durable path back to consistent profitability.

MT Educare Ltd Business Overview & Revenue Model

Company Description

MT Educare Limited, together with its subsidiaries, provides education support and coaching services in India. The company offers courses for school, science, and commerce education, as well as management entrance test preparations under the Robomate+, Lakshya, Mahesh Tutorials School Section, Mahesh Tutorials Science, Mahesh Tutorials Commerce, and CPLC brand names. It also operates college under Mahesh PU College brand name. In addition, the company engages in the business of acquiring and leasing properties. The company was founded in 1988 and is headquartered in Mumbai, India. MT Educare Limited is a subsidiary of Zee Learn Limited.

How the Company Makes Money

MT Educare generates revenue primarily through tuition fees collected from students enrolled in its various coaching programs and online courses. The company's revenue model includes several key streams: first, direct fees from classroom coaching programs and online classes; second, sales of study materials and test preparation resources; and third, partnerships with educational institutions for curriculum development and training services. Additionally, MTEDUCARE may benefit from strategic alliances with technology firms to enhance its digital learning platforms, which can also attract more students and increase overall earnings.

MT Educare Ltd Financial Statement Overview

Summary

Income statement, balance sheet, and cash flow data point to significant stress: declining revenue, persistent negative EBIT/net income, negative stockholders’ equity (liabilities exceeding assets), and weak/negative operating and free cash flow. These factors imply elevated solvency and liquidity risk.

Income Statement

MT Educare Ltd has faced declining revenues and negative profitability over recent years. The gross profit margin has decreased alongside a significant drop in revenue, indicating declining operational efficiency. The company has consistently reported negative EBIT and net income, highlighting ongoing challenges in achieving profitability. These factors contribute to a lower income statement score.

Balance Sheet

The company's balance sheet shows concerning signs with negative stockholders' equity, indicating liabilities exceed assets. The high debt-to-equity ratio due to negative equity poses financial risk. Return on Equity (ROE) is negative due to consistent net losses. These factors contribute to a low balance sheet score, reflecting financial instability and leverage concerns.

Cash Flow

MT Educare Ltd has experienced fluctuating cash flows with recent negative operating cash flow and declining free cash flow. The inability to generate positive free cash flow consistently raises concerns about liquidity and financial flexibility. Despite occasional positive investing cash flow, the overall cash flow position is weak, leading to a lower score.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	436.94M	503.60M	473.35M	581.93M	530.50M	751.78M
Gross Profit	41.05M	75.14M	31.53M	-48.47M	92.30M	166.75M
EBITDA	-24.51M	22.86M	-37.98M	-434.10M	2.66M	250.72M
Net Income	-332.03M	-309.94M	-276.53M	-607.07M	-255.24M	-302.29M
Balance Sheet
Total Assets	0.00	2.64B	2.91B	2.94B	3.33B	3.77B
Cash, Cash Equivalents and Short-Term Investments	115.97M	448.22M	177.13M	176.66M	216.52M	236.18M
Total Debt	0.00	1.39B	1.35B	1.15B	975.96M	1.08B
Total Liabilities	17.95M	2.66B	2.61B	2.38B	2.15B	2.34B
Stockholders Equity	-17.95M	-17.95M	294.21M	568.29M	1.18B	1.43B
Cash Flow
Free Cash Flow	0.00	-14.27M	-34.08M	-5.67M	54.23M	-35.23M
Operating Cash Flow	0.00	-8.28M	-20.18M	19.99M	54.23M	-28.10M
Investing Cash Flow	0.00	35.83M	62.23M	-27.54M	43.54M	85.98M
Financing Cash Flow	0.00	439.00K	-37.54M	12.27M	-87.97M	-69.21M

MT Educare Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MTEDUCARE, the sentiment is Negative. The current price of 1.74 is above the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.83, and below the 200-day MA of 2.12, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 30.26 is Neutral, neither overbought nor oversold. The STOCH value of 7.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MTEDUCARE.

MT Educare Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLOBAL	75 Outperform	₹4.16B	18.96	―	1.06%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEELEARN	55 Neutral	₹2.11B	23.76	―	―	28.91%	-94.80%
CLEDUCATE	52 Neutral	₹4.04B	-22.39	―	―	43.91%	-249.30%
MTEDUCARE	41 Neutral	₹101.84M	-0.45	―	―	-3.63%	24.10%

MT Educare Ltd Corporate Events

MT Educare Discloses Loan Defaults Amid Ongoing Insolvency Process

MT Educare Limited has disclosed that it has defaulted on repayment of principal and interest on multiple secured borrowings, including term loans, overdraft facilities and corporate guarantees, with total outstanding borrowings from banks and financial institutions of about Rs 32.33 crore. The defaults, which relate mainly to obligations towards Prudence ARC and Axis Bank dating back to March 2021, also encompass invoked corporate guarantees for third-party borrowers and are being addressed within the ongoing Corporate Insolvency Resolution Process, while certain disputed guarantee-related claims continue to be contested before higher judicial forums, underscoring the company’s stressed financial position and the unresolved exposure for its secured creditors.