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

• Market Cap: ₹122.31M
• Dividend Yield: N/A
• Average Volume (3M): 4.33K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 1.12
• 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: 62 Neutral
• Price Target: ₹4.50 ▼(-8.91% Downside)

The overall score is primarily driven by strong financial performance, particularly in profitability and cash flow management. However, the significant revenue decline and bearish technical indicators weigh negatively on the stock's outlook. The high P/E ratio suggests potential overvaluation, further impacting the score.

Positive Factors

Strong cash generation

Consistent operating cash conversion and rising free cash flow indicate the business generates real cash even amid revenue pressure. That strengthens liquidity, funds reinvestment or deleveraging, and supports durable operations and strategic flexibility over the next several quarters.

Very low leverage

A very high equity ratio and minimal debt reduce financial risk and interest burden, providing balance sheet flexibility to absorb shocks, invest in growth, or pursue M&A without heavy refinancing needs. This supports long-term resilience and strategic optionality.

High profit margins

Exceptionally high gross and EBITDA margins point to strong unit economics and cost control, enabling the company to remain profitable at lower revenue levels. If sustainable, such margins provide a durable earnings buffer and capacity to reinvest in product or service quality.

Negative Factors

Significant revenue decline

A near-30% revenue drop is a structural concern: it can erode scale economics, limit market share rebuilding, and make high margins harder to sustain long term. Recovery will require consistent demand restoration or new revenue streams, which can take multiple quarters.

Very small operating scale

A headcount of nine implies limited operational scale and scale-related cost absorption. Small size can constrain sales reach, product development bandwidth, and customer support capacity, making sustained growth and large-contract wins more challenging over the medium term.

Volatile earnings growth

Extreme EPS growth suggests earnings are influenced by one-offs or volatile items rather than steady operating improvement. Such volatility undermines earnings predictability, complicates planning and investor confidence, and raises the risk that past margins are not repeatable.

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

UMESLTD generates revenue through multiple streams, primarily from course fees charged for its educational programs and training services. The company offers both in-person and online training modules, allowing for flexible learning options, which attracts a diverse clientele. Additionally, UMESLTD partners with various organizations and industries to provide customized training solutions, which further contributes to its revenue. These partnerships often include contracts for bulk training sessions or specialized courses tailored to the needs of specific companies. Furthermore, UMESLTD may also generate income from certification fees, workshops, and seminars, along with potential government grants or funding for skill development initiatives.

Usha Martin Education & Solutions Limited Financial Statement Overview

Summary

Usha Martin Education & Solutions Limited shows strong profitability and operational efficiency with high EBITDA Margin and strong cash flow management. However, the decline in revenue by 28.5% is a significant concern for future growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.50M	5.24M	7.33M	6.55M	7.84M	5.90M
Gross Profit	3.18M	2.94M	5.28M	4.18M	5.10M	3.04M
EBITDA	4.52M	4.66M	3.13M	1.06M	1.90M	2.10M
Net Income	3.22M	3.13M	1.51M	632.82K	605.00K	251.86K
Balance Sheet
Total Assets	0.00	157.71M	178.05M	183.92M	185.86M	186.50M
Cash, Cash Equivalents and Short-Term Investments	591.00K	1.75M	351.68K	478.28K	495.87K	161.89K
Total Debt	0.00	7.15M	17.00M	25.71M	27.07M	27.07M
Total Liabilities	-145.96M	11.75M	35.23M	42.68M	45.26M	46.51M
Stockholders Equity	145.96M	145.96M	142.82M	141.23M	140.60M	139.99M
Cash Flow
Free Cash Flow	0.00	11.42M	6.17M	1.19M	1.99M	-211.46K
Operating Cash Flow	0.00	11.47M	6.17M	1.25M	1.99M	-211.46K
Investing Cash Flow	0.00	438.00K	2.59M	1.69M	175.11K	160.62K
Financing Cash Flow	0.00	-11.67M	-8.89M	-2.96M	-1.83M	-150.58K

Usha Martin Education & Solutions Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.94
• 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:UMESLTD, the sentiment is Negative. The current price of 4.94 is above the 20-day moving average (MA) of 4.73, above the 50-day MA of 4.92, and below the 200-day MA of 5.51, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of 27.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	₹4.27B	19.50	―	1.06%	―	―
UMESLTD	62 Neutral	₹122.31M	30.97	―	―	-26.73%	388.56%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ZEELEARN	55 Neutral	₹2.08B	23.43	―	―	28.91%	-94.80%
MTEDUCARE	41 Neutral	₹104.01M	-0.46	―	―	-3.63%	24.10%