S Chand & CompanQ1 FY24

S Chand & Compan Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹144P/E: 6.9Market Cap: ₹512 CrSector: Printing & Publication

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

No

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3
  • Targeting annual revenues between Rs 7200 million and Rs 7500 million, reflecting 18%-22% growth for FY24.
  • Planning to launch about 500 new SKUs across school and higher education segments to gain better traction.
  • Anticipate strong volume growth supported by the upcoming NCF announcement, which will help volume expansion over the next 2-3 years.
  • Focus on expanding product portfolio aligned with NEP 2020 and regional education requirements.
  • Continuous introduction of new products, including artificial intelligence series for schools and collaborations with YouTubers for government exam prep.
  • Expect demand to improve with a single-digit price hike across product portfolio and potential gross margin improvement if paper prices stabilize or decline.
  • Confident of maintaining or increasing market share due to strong financials, clear product strategy, and competitive positioning against unorganized players.

See what S Chand & Compan management said on margin guidance — free account, 30 seconds.

Fundraise plans

No
  • No current plans to raise debt or equity for investments.
  • The company intends to fund any acquisitions or investments solely through internal cash flows.
  • They have taken board approval for a potential small acquisition up to Rs20 crores, which will be funded without raising external capital.
  • The company is conservative with capital allocation due to past cash flow uncertainties (e.g., COVID-19 period).
  • They have restarted dividend payments but are maintaining a minimum war chest for uncertain situations.
  • No mention of any immediate large-scale fundraising planned through debt or equity at this time.

See what S Chand & Compan management said on order book — free account, 30 seconds.

Capex plans

Yes
  • The company is currently looking at a small-sized strategic acquisition with board approval for up to Rs 20 crores; details are under NDA and the deal is niche-focused.
  • They plan to continue making strategic investments to fill gaps in their portfolio.
  • Any investments will be made using internal cash flows; there is no plan to raise debt or equity for acquisitions.
  • The company holds minority stakes in companies like Smartivity (around 16%) and iXambee (4.3%), with no immediate plans to increase stake unless secondary buyouts arise.
  • They are considering buybacks or return of capital to improve ROCE and ROE after stabilizing cash flows post-COVID.
  • Overall, capital allocation remains conservative with a focus on maintaining a war chest for uncertain circumstances while selectively pursuing strategic, smaller investments.

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How does S Chand & Compan rank vs peers in Printing & Publication?

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