S Chand And Company Limited (SCHAND) AI Stock Analysis

• Market Cap: ₹5.36B
• Dividend Yield: 4.27%
• Average Volume (3M): 2.43K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.99
• Revenue Growth: 9.36%
• EPS Growth: 26.19%
• Country: IN
• Employees: 1,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Publishing
• EPS (TTM): -7.89
• Shares Outstanding: 35,272,190
• 10 Day Avg. Volume: 3,747
• 30 Day Avg. Volume: 2,430
• PEG Ratio: 0.82
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 8.39
• 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): 24
• Revenue Forecast (FY): ₹8.10B

• Rating: 65 Neutral
• Price Target: ₹174.00 ▲(8.65% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by mixed financial performance (revenue decline, margin pressure, and weaker free-cash-flow conversion) balanced by a strong, low-leverage balance sheet. Valuation is a key positive (modest P/E and ~4.4% yield), while technical indicators are broadly neutral with the price still below longer-term moving averages.

Positive Factors

Low leverage / strong balance sheet

Low leverage (debt-to-equity ~0.15) provides durable financial flexibility to fund content development, absorb seasonal textbook demand, and withstand revenue volatility without needing external financing. This supports medium-term capital allocation and dividend resilience.

Positive operating and free cash flow

Consistent positive operating cash flow (~0.79B) and FCF (~0.47B) mean the business generates real cash after operations. That cash underpins working-capital cycles, ongoing content investment and distribution costs, providing a durable buffer for multi-month strategy execution.

Established K‑12 franchise and returning profitability

An entrenched K–12 publishing franchise with curriculum-aligned titles and school adoption channels creates recurring demand and switching frictions. Returning from a FY2021 loss to sustained profits suggests the business model can deliver stable earnings across academic cycles.

Negative Factors

Revenue decline and margin compression

A ~16.6% TTM revenue decline alongside net and EBITDA margin compression indicates structural demand weakness or pricing/mix pressure. Sustained top-line weakness plus lower margins undermine reinvestment capacity and could force ongoing cost measures to protect cash flow.

Weaker free cash flow conversion

An ~18% fall in FCF and coverage of only ~59% of net income highlights weak earnings-to-cash conversion. For a seasonal publisher, persistent conversion shortfalls limit funds for new titles, digital initiatives or shareholder returns and raise reliance on balance-sheet liquidity.

Modest and easing returns on equity

A TTM ROE around ~5.5%, down from ~7.4%, signals limited capital efficiency. Persistently low ROE constrains the firm's ability to self-fund expansion, pressures management to improve allocation, and can hinder long-term shareholder-value creation versus higher-return peers.

S Chand And Company Limited Business Overview & Revenue Model

Company Description

S Chand and Company Limited, an education content company, develops and delivers content, solutions, and services for the early learning, K-12, and higher education segments in India. The company provides instructional resources to students from ages four through eighteen years; test preparation, and college and university/technical and professional content; early learning content for 0-4 years of age; and digital and interactive content, as well as service offerings under the S Chand, Vikas, Madhubun, Saraswati, Chhaya Prakashani, mylestone, Test Coach, BPI, Smartivity, SamrtK, Destination Success, Mystudygear, Ignitor, and Learnflix brand names. It also offers Flipclass, a marketplace for tutoring. The company also exports its printed content to approximately 15 countries and digital content to countries in Asia, the Middle East, Africa, and internationally. S Chand and Company Limited was incorporated in 1970 and is based in New Delhi, India.

How the Company Makes Money

S Chand And Company generates revenue primarily through the sale of educational textbooks and materials. Its revenue model is built on multiple streams, including direct sales to schools and institutions, distribution through retail channels, and online sales platforms. Additionally, the company has expanded its offerings to include digital learning solutions and e-books, which contribute to its revenue growth in the increasingly digital education space. Significant partnerships with educational institutions and government initiatives in the education sector further bolster its sales. The company also benefits from the growing demand for quality educational content in India, driven by rising literacy rates and the emphasis on quality education.

S Chand And Company Limited Financial Statement Overview

Summary

Financials are mixed: revenue declined (~16.6% TTM) with margin compression, and free cash flow fell (~-18%) with weaker cash conversion (~59% of net income). Offsetting this, the balance sheet remains solid with low leverage (debt-to-equity ~0.15) and continued profitability.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined ~16.6% versus the prior annual period, and profitability stepped down (net margin ~7.1% in TTM vs ~8.8% last year; EBITDA margin ~17.9% vs ~20.6%). The longer-term picture is improved versus earlier years (moving from a loss in FY2021 to consistent profits since), but the recent revenue contraction and margin compression point to a weaker near-term earnings trajectory.

Balance Sheet

Leverage looks conservative with low debt relative to equity (TTM debt-to-equity ~0.15), supporting financial flexibility. Returns on equity are positive but modest (TTM ROE ~5.5%) and have eased versus FY2023 (~7.4%), suggesting profitability is not translating into strong shareholder returns despite a generally solid capital structure.

Cash Flow

Cash generation is positive, with TTM operating cash flow (~0.79B) and free cash flow (~0.47B) both in the black; however, free cash flow fell meaningfully versus the prior year (growth ~-18%). Free cash flow covers only ~59% of TTM net income, indicating earnings are not fully converting into surplus cash, even though operating cash flow remains positive.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.22B	7.20B	6.63B	6.04B	4.76B	4.22B
Gross Profit	4.22B	4.91B	1.87B	3.30B	2.61B	2.29B
EBITDA	1.15B	1.48B	1.20B	1.45B	729.18M	728.49M
Net Income	480.56M	635.35M	566.34M	660.36M	111.85M	-57.66M
Balance Sheet
Total Assets	11.97B	12.66B	12.73B	12.20B	11.93B	12.36B
Cash, Cash Equivalents and Short-Term Investments	699.00M	1.70B	1.67B	1.15B	827.79M	739.36M
Total Debt	1.94B	1.08B	1.33B	1.52B	1.82B	2.38B
Total Liabilities	3.16B	2.76B	3.30B	3.16B	3.46B	3.99B
Stockholders Equity	8.84B	9.90B	9.41B	8.96B	8.31B	8.18B
Cash Flow
Free Cash Flow	466.68M	752.15M	1.04B	648.96M	906.10M	959.07M
Operating Cash Flow	794.43M	998.90M	1.21B	810.72M	1.07B	1.08B
Investing Cash Flow	-475.06M	-494.89M	-240.73M	-44.12M	-27.66M	-176.12M
Financing Cash Flow	-318.59M	-752.23M	-530.23M	-606.98M	-848.12M	-579.30M

S Chand And Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SCHAND, the sentiment is Negative. The current price of 160.15 is above the 20-day moving average (MA) of 159.67, above the 50-day MA of 159.27, and below the 200-day MA of 188.87, indicating a bearish trend. The MACD of -1.95 indicates Positive momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 9.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SCHAND.

S Chand And Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAVNETEDUL	80 Outperform	₹31.39B	8.67	―	2.03%	-0.37%	-71.05%
MONTECARLO	73 Outperform	₹11.30B	11.69	―	2.83%	8.10%	59.25%
JAICORPLTD	70 Outperform	₹18.42B	10.72	―	4.22%	―	―
SCHAND	65 Neutral	₹5.36B	11.14	―	4.27%	9.36%	26.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FILATFASH	55 Neutral	₹1.75B	41.18	―	―	9.68%	-15.18%

S Chand And Company Limited Corporate Events

S Chand Schedules Q3 FY26 Earnings Call for Investors and Analysts

S Chand and Company Limited has announced that it will hold an investors and analysts conference call on Friday, February 13, 2026 at 1:30 p.m. IST to discuss its unaudited financial results for the quarter and nine months ended December 31, 2025. The call, which will feature the managing director, group chief financial officer and head of investor relations, underscores the company’s ongoing engagement with capital-market participants and its commitment to timely financial disclosure, with details and any schedule changes to be shared via the company’s website and designated access numbers.

S Chand Subsidiary to Acquire Singapore-Based International Curriculum Publisher

S Chand And Company Limited has announced that its wholly owned subsidiary, New Saraswati House (India) Private Limited, has signed definitive agreements to acquire 100% of CPD Singapore Education Services Pte. Ltd., a Singapore-based provider of education-support services and publisher of International Curriculum (IB/IGCSE) school books and children’s materials. The cash deal, valued at SGD 1.5 million and expected to close by February 28, 2026, will make CPD Singapore a step-down subsidiary of S Chand, giving the group exposure to the international curriculum segment, filling a gap in its current portfolio, and expanding its reach in key overseas markets including the Middle East, South Asia and SAARC, with no related-party involvement or regulatory approvals required.

S Chand’s Credit Rating Upgraded by ICRA

S Chand And Company Limited announced an upgrade in its long-term credit rating by ICRA Limited from [ICRA]A- (Stable) to [ICRA]A (Stable). This upgrade reflects positively on the company’s financial stability and could enhance its borrowing capacity, potentially impacting its operations and market positioning favorably.