Usha Martin Education & Solutions Limited (UMESLTD) AI Stock Analysis

• Market Cap: ₹155.85M
• Dividend Yield: N/A
• Average Volume (3M): 4.33K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 1.04
• Revenue Growth: -26.73%
• EPS Growth: 388.56%
• Country: IN
• Employees: 9
• Sector: Services
• Sector Strength: N/A
• Industry: Education & Training Services
• EPS (TTM): 0.03
• Shares Outstanding: 26,415,812
• 10 Day Avg. Volume: 2,174
• 30 Day Avg. Volume: 4,334
• PEG Ratio: 0.44
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 26.22
• P/FCF Ratio: 12.03
• 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: 69 Neutral
• Price Target: ₹6.50 ▲(31.58% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven by strong profitability, solid balance sheet quality, and healthy cash flow, supported by an uptrend in technicals (price above major DMAs with positive MACD). This is tempered by a steep revenue decline and a high P/E valuation with no dividend yield data provided.

Positive Factors

High profitability and margins

Exceptionally high gross, net and EBITDA margins indicate the business earns strong unit economics and pricing power. Durable margin strength supports internal reinvestment and cash retention, enabling operational resilience and strategic choices over the next 2-6 months.

Strong free cash flow generation

Rising free cash flow and solid operating-cash-to-net-income conversion demonstrate durable cash generation even amid revenue pressures. This underpins debt capacity, capital allocation flexibility and the ability to fund strategic initiatives without external financing in the medium term.

Very low leverage and strong equity base

A high equity ratio and minimal debt materially reduce financial risk and interest burden. This balance sheet strength provides capacity to absorb demand shocks, pursue opportunistic investments or acquisitions, and maintain operations through cyclical headwinds over several months.

Negative Factors

Steep year-on-year revenue decline

A nearly 30% YoY revenue drop is a material structural concern that undermines the sustainability of margins and cash flow. It suggests weakening demand or lost contracts, and over the next 2-6 months could limit organic recovery or require strategic corrective actions to restore top-line momentum.

Very small employee base constrains scale

Operating with a tiny workforce implies heavy reliance on key individuals or external partners, limiting capacity to scale programs, diversify offerings, or execute growth initiatives. This raises execution and succession risk that can hinder medium-term operational expansion.

Margin durability concerns given sales fall

Exceptionally high margins alongside steep revenue decline suggest margins could be supported by one-offs or fixed-cost leverage rather than sustainable demand. If revenue pressure persists, margins and reported cash generation may compress, reducing earnings quality over the medium term.

Usha Martin Education & Solutions Limited Business Overview & Revenue Model

Company Description

Usha Martin Education & Solutions Limited provides educational support services in India. It operates training centers for various higher education courses under the Usha Martin Academy brand name. The company also offers ERP certification courses; big data analytics training and certification courses; Hybris training and certification courses; and industry and university connect courses. In addition, it provides career development programs. The company was formerly known as Usha Martin Infotech Limited and changed its name to Usha Martin Education & Solutions Limited in 2009. Usha Martin Education & Solutions Limited was incorporated in 1997 and is based in Kolkata, India.

How the Company Makes Money

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Usha Martin Education & Solutions Limited Financial Statement Overview

Summary

Strong profitability and efficiency (Gross Margin 56.1%, Net Margin 59.8%, EBITDA Margin 88.9%) and healthy cash generation with growing free cash flow. The main offset is a notable revenue decline of 28.5% year-on-year, which raises growth sustainability risk despite a low-leverage balance sheet (D/E 0.05, Equity Ratio 92.5%).

Income Statement

The company has shown strong gross and net profit margins with Gross Profit Margin at 56.1% and Net Profit Margin at 59.8% for the latest year. However, revenue has declined compared to the previous year by 28.5%, which is a concern. The EBITDA Margin is exceptionally high at 88.9%, indicating strong operational efficiency.

Balance Sheet

The company maintains a solid equity position with an Equity Ratio of 92.5%. The Debt-to-Equity Ratio is low at 0.05, indicating low leverage, which reduces financial risk. Return on Equity is strong at 2.1%, showing effective use of equity to generate income.

Cash Flow

Operating Cash Flow to Net Income Ratio is strong, indicating good cash generation relative to net income. Free Cash Flow has grown significantly, with a notable increase year-on-year. The company shows robust cash flow management with positive Free Cash Flow even during revenue declines.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.87M	5.24M	7.33M	6.55M	7.84M	5.90M
Gross Profit	3.54M	2.94M	5.28M	4.18M	5.10M	3.04M
EBITDA	4.99M	4.66M	3.13M	1.06M	1.90M	2.10M
Net Income	3.95M	3.13M	1.51M	632.82K	605.00K	251.86K
Balance Sheet
Total Assets	163.46M	157.71M	178.05M	183.92M	185.86M	186.50M
Cash, Cash Equivalents and Short-Term Investments	388.00K	1.75M	351.68K	478.28K	495.87K	161.89K
Total Debt	4.25M	7.15M	17.00M	25.71M	27.07M	27.07M
Total Liabilities	23.70M	11.75M	35.23M	42.68M	45.26M	46.51M
Stockholders Equity	139.76M	145.96M	142.82M	141.23M	140.60M	139.99M
Cash Flow
Free Cash Flow	2.67M	11.42M	6.17M	1.19M	1.99M	-211.46K
Operating Cash Flow	2.68M	11.47M	6.17M	1.25M	1.99M	-211.46K
Investing Cash Flow	177.00K	438.00K	2.59M	1.69M	175.11K	160.62K
Financing Cash Flow	-3.03M	-11.67M	-8.89M	-2.96M	-1.83M	-150.58K

Usha Martin Education & Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.94
• 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:UMESLTD, the sentiment is Positive. The current price of 4.94 is above the 20-day moving average (MA) of 4.46, above the 50-day MA of 4.66, and below the 200-day MA of 5.34, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 68.36 is Neutral, neither overbought nor oversold. The STOCH value of 78.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:UMESLTD.

Usha Martin Education & Solutions Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLOBAL	82 Outperform	₹5.27B	17.04	―	1.06%	―	―
UMESLTD	69 Neutral	₹155.85M	40.81	―	―	-26.73%	388.56%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEELEARN	55 Neutral	₹1.79B	-22.75	―	―	28.91%	-94.80%
EDUCOMP	42 Neutral	₹124.92M	―	―	―	―	―
MTEDUCARE	41 Neutral	₹102.56M	-1.48	―	―	-3.63%	24.10%