Prabhudas Lilladher's research report on S Chand and Company
In a seasonally weak quarter, while SCHAND’s topline was flat, GM improved to 53.1% (PLe 55.0%) aided by a content syndication deal. The management reaffirmed its FY25E guidance of double-digit revenue growth with EBITDA margin of 17-19% supported by 1) single-digit price hike, 2) RM cost stabilization, and 3) anticipated volume delta arising from phased rollout of the new NCF. Although adoption of NCF-aligned content has been gradual, with NCERT announcing new syllabus books only for grades 3 and 6 so far, further announcements during the course of the year will drive higher adoption rate and aid revenue. Backed by these factors, we expect sales/PAT CAGR of 12%/18% over FY25E-FY27E.
Outlook
SCHAND trades at attractive valuations of 8.0x/7.5x our FY26E/FY27E EPS estimates. We broadly maintain our estimates and retain ‘BUY’ with a revised TP of Rs 322 (12x Sep’26EPS; no change in target multiple).
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