Tree House Education & Accessories Limited (TREEHOUSE) AI Stock Analysis

• Market Cap: ₹385.87M
• Dividend Yield: N/A
• Average Volume (3M): 9.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -35.95%
• EPS Growth: -416.59%
• Country: IN
• Employees: 13
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Education & Training Services
• EPS (TTM): -0.02
• Shares Outstanding: 42,310,722
• 10 Day Avg. Volume: 1,367
• 30 Day Avg. Volume: 9,110
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 5.59
• P/FCF Ratio: -347.45
• 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: 51 Neutral
• Price Target: ₹9.00 ▲(11.39% Upside)

Overall score is held back primarily by weak financial performance (losses, declining margins, and negative operating/free cash flow), partially offset by supportive technical momentum (price above key moving averages with positive MACD). Valuation is constrained by negative earnings and no stated dividend yield.

Positive Factors

Conservative balance sheet

A high equity ratio and low debt-to-equity provide durable financial flexibility, lowering default risk and preserving borrowing capacity during downturns. This structural strength supports continued operations and potential capital raises even as assets and equity have recently declined.

Diverse revenue channels

Multiple sales channels and institutional partnerships reduce customer concentration and distribution risk, enabling the company to pivot between online, retail, and wholesale as market conditions change. This diversified model supports more stable long-term revenue opportunities.

Product-market fit in education

A focused product portfolio serving parents, educators, and schools targets a persistent, structural need for learning resources. If product quality and distribution execution hold, this sector positioning supports recurring demand and long-term customer relationships.

Negative Factors

Persistent unprofitability

Sustained negative operating and net results indicate structural issues in pricing, cost control, or product mix. Continued losses erode retained earnings, limit reinvestment capacity, and make it harder to build durable competitive advantages without material margin improvement.

Negative operating and free cash flow

Ongoing negative operating and free cash flow undermines the company's ability to self-fund inventory, marketing, and product development. Over months, this forces reliance on external financing or equity, constraining strategic flexibility and increasing funding risk.

Shrinking, unstable revenue

A marked decline and instability in revenue reduces scale benefits, pressures margins, and raises customer retention concerns. Without a sustained reversal, shrinking top-line trends limit operating leverage and make recovery of profitability and cash generation more difficult.

Tree House Education & Accessories Limited Business Overview & Revenue Model

Company Description

Tree House Education & Accessories Limited provides educational services in India. The company offers a range of programs for children, including play group, nursery, junior kindergarten, senior KG, day care services, teacher training courses, summer camps, and hobby classes. It also leases education infrastructure. The company was founded in 2003 and is based in Mumbai, India.

How the Company Makes Money

TREEHOUSE generates revenue through multiple streams including direct sales of educational products via its online platform and physical retail partnerships. Additionally, the company may engage in wholesale distribution to educational institutions and daycare centers, contributing to bulk sales. Strategic partnerships with schools and educational organizations enhance brand visibility and create opportunities for co-branded products. Seasonal promotions and educational workshops may also provide supplementary income, attracting families and educators looking for innovative teaching solutions.

Tree House Education & Accessories Limited Financial Statement Overview

Summary

Tree House Education & Accessories Limited faces significant financial challenges, particularly in terms of profitability and cash flow management. The income statement reflects negative EBIT and net income, with declining revenue trends. The balance sheet is stable with a strong equity base and low leverage, but the cash flow statement highlights liquidity concerns due to negative free cash flow and operating cash flow.

Income Statement

The income statement reflects significant challenges in profitability, with negative EBIT and net income in the most recent period. Gross profit margin has declined over the years, indicating cost management issues. Revenue has been unstable with a declining trend, which poses a risk to future growth.

Balance Sheet

The balance sheet is relatively stable with a high equity ratio, suggesting strong equity financing. However, the company has been experiencing a decrease in total assets and stockholders' equity over the years, which may indicate deteriorating financial health. The debt-to-equity ratio remains low, indicating conservative leverage.

Cash Flow

The cash flow statement highlights negative free cash flow and operating cash flow, which raises concerns about liquidity and operational efficiency. Despite a positive investing cash flow trend, the company struggles with cash flow from operations, potentially impacting future investments and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.00M	71.40M	80.22M	100.50M	59.67M	37.99M
Gross Profit	23.60M	31.30M	33.21M	59.00M	37.82M	17.57M
EBITDA	-509.00K	-32.94M	9.60M	-68.80M	-31.47M	-103.06M
Net Income	-167.70M	-173.00M	-37.88M	-446.60M	-272.11M	-403.00M
Balance Sheet
Total Assets	0.00	1.96B	2.13B	2.20B	2.86B	3.34B
Cash, Cash Equivalents and Short-Term Investments	0.00	3.30M	25.00K	8.52M	111.24K	2.18M
Total Debt	0.00	400.00K	243.00K	3.35M	198.66M	334.00M
Total Liabilities	-1.91B	53.40M	46.04M	84.20M	294.88M	479.60M
Stockholders Equity	1.91B	1.91B	2.08B	2.12B	2.57B	2.86B
Cash Flow
Free Cash Flow	0.00	-1.15M	-8.51M	90.86M	24.19M	8.12M
Operating Cash Flow	0.00	-1.07M	-8.31M	105.05M	30.94M	10.99M
Investing Cash Flow	0.00	1.09M	-154.00K	165.83M	164.88M	-2.76M
Financing Cash Flow	0.00	-26.00K	-32.00K	-262.49M	-197.87M	-7.70M

Tree House Education & Accessories Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TREEHOUSE, the sentiment is Positive. The current price of 8.08 is below the 20-day moving average (MA) of 8.20, below the 50-day MA of 8.09, and above the 200-day MA of 8.08, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.64 is Neutral, neither overbought nor oversold. The STOCH value of 65.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TREEHOUSE.

Tree House Education & Accessories Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCHAND	68 Neutral	₹5.57B	10.86	―	4.27%	9.36%	26.19%
NAVNETEDUL	63 Neutral	₹31.77B	15.54	―	2.03%	-0.37%	-71.05%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TREEHOUSE	51 Neutral	₹385.87M	-2.39	―	―	-35.95%	-416.59%