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Way2wealth recommend 'Subscribe' to S Chand & Company IPO with long term horizon - IndiaNotes.com
Way2wealth recommend 'Subscribe' to S Chand & Company IPO with long term horizon
Nirmal Bang | Published: 26 Apr, 2017  | Source : IndiaNotes.com

COMPANY BACKGROUND

S. Chand and Company limited is a leading Indian education content company in India. It delivers content, solutions and services across the education lifecycle through its presence in three business segments – Early Learning, K-12 and Higher Education. The company has a strong foothold in the CBSE/ICSE affiliated schools, with increasing presence in the state board affiliated schools across India. It has also developed and continues to nurture relationships with customers by developing quality content and educational innovation. In recent years it has increased focus on investing and improving their digital offerings in each of business segments. As of December 31, 2016, distribution and sales network consisted of 4,932 distributors and dealers and in-house sales team of 838 professionals working from 52 branches and marketing offices across India.


VALUATIONS

With over 70 years of presence in the this segment S Chand delivers content, solutions and services across the education lifecycle through its presence in three business segments – Early Learning, K-12 and Higher Education. The company has a strong foothold in the CBSE/ICSE affiliated schools, with increasing presence in the state board affiliated schools across India. S Chand & Company is a heritage brand in India’s school publishing sector. Approximately 55% of the issue is for offer for sale and ~`255 crs. is debt repayment. At the price band of `660-670/- the issue is demanding a ~40x PE valuation (FY16) (Chhaya + existing business).  Valuations in the education sector have always been at premium on account of various macro growth drivers like – increase in private schools, increased frequency in curriculum revisions, increasing student population etc.  With commendable historical growth & leadership we believe S Chand is well placed to further penetrate into newer markets. S Chand & Company has emerged as a heritage brand in India’s school publishing sector. We advise investor with a long term investment horizon to SUBSCRIBE to the issue.


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About Nirmal Bang

Founded in 1986 by Nirmal Bang, the Nirmal Bang is recognized as one of the largest retail broking houses in India, providing an array of financial products and services. Their retail and institutional clients have access to products such as equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS. The Group is headed by Mr. Dilip Bang and Mr. Kishore Bang.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.