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

• Market Cap: ₹311.41M
• Dividend Yield: N/A
• Average Volume (3M): 9.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -35.95%
• EPS Growth: -416.59%
• Country: IN
• Employees: 13
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Education & Training Services
• EPS (TTM): -0.23
• 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: 41 Neutral
• Price Target: ₹7.00 ▼(-13.37% Downside)

The score is held down primarily by weak financial performance (losses, declining/unstable revenue, and negative operating/free cash flow). Technicals also remain bearish with the stock below major moving averages and negative MACD; valuation offers limited support because the company is loss-making and no dividend yield is indicated.

Positive Factors

Low leverage / high equity ratio

A high equity ratio and low debt provide durable financial flexibility, reducing interest burden and insolvency risk. This structural conservatism helps fund operations or restructuring during prolonged losses and supports strategic options like partnerships or product investment over the next 2–6 months.

Diversified revenue channels

Multiple sales channels and institutional partnerships create durable revenue diversification, lowering dependence on any single route. This supports steadier order flow, facilitates scale for product lines, and enhances resilience to retail disruptions over a medium-term horizon.

Education-focused product suite

A clear focus on educational toys and learning materials targets a structurally stable market driven by demographics and curriculum needs. Institutional buyers and repeat consumer purchases can provide recurring demand, aiding long-term product adoption and brand positioning.

Negative Factors

Consistent unprofitability and declining revenue

Sustained losses and falling revenue undermine operational viability and limit reinvestment capacity. Without a return to positive margins, the company risks further erosion of competitive position and will struggle to fund marketing, product development, or expansion in the coming months.

Negative operating and free cash flow

Persistent negative operating and free cash flow degrade liquidity and constrain capital allocation. This structural cash drain reduces ability to finance inventory, marketing, or product investment organically and increases reliance on external funding or equity dilution over the medium term.

Declining assets and shareholders' equity

A shrinking asset and equity base signals capital erosion and weaker balance-sheet resilience. Over time this limits borrowing capacity, reduces financial buffers against downturns, and increases risk that future investments or recovery initiatives cannot be funded without external capital.

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

Overall financials are weak: profitability is negative (EBIT and net income), revenue has trended down/unstable, and operating/free cash flow are negative. The balance sheet is a partial offset with low leverage and a relatively strong equity base, but assets and equity have been declining.

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: Negative
• Last Price: 8.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 8.08 is above the 20-day moving average (MA) of 7.74, above the 50-day MA of 8.05, and above the 200-day MA of 7.91, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 32.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
NAVNETEDUL	80 Outperform	₹35.71B	9.91	―	2.03%	-0.37%	-71.05%
SCHAND	68 Neutral	₹5.78B	11.29	―	4.27%	9.36%	26.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TREEHOUSE	41 Neutral	₹311.41M	-1.90	―	―	-35.95%	-416.59%