S Chand falls for second day; down over 22% on YTD basis

S Chand and Company slipped 0.72% to Rs 165.90, extending losses for second day in a row.

The stock has declined 2.53% in two session, from its recent closing high of Rs 170.20 recorded on 19 November 2025.

On a year-to-date (YTD) basis, the stock has fallen 22.46% while the S&P BSE SmallCap index has lost 6.47%. In that same period, the benchmark S&P BSE Sensex has gained 8.60%.

On the technical front, the stocks RSI (14) was currently at 36.291. An RSI reading of 70 or above indicates an overbought condition. A reading of 30 or below indicates an oversold condition.

On the daily chart, the scrip is trading below its 10-day, 20-day and 100-day simple moving averages placed at 169.79, 173.85 and 196.57, respectively.

S Chand and Company said that the credit rating agency ICRA has upraded the companys long-term rating to [ICRA] A (Stable) from [ICRA] A- (Stable).

ICRA stated that the rating upgrade factors in the gradual improvement in the margin profile, with OPBDIT margin rising to 19% in FY2025 from sub 15% till FY2022, led by better operating efficiencies and favourable paper prices since the last two fiscals.

The Group's working capital efficiency posted an improvement, driven by continued efforts to optimise inventory and reduce dealer collection period.

The financial risk profile is further supported by steady revenue growth and net debt free status as on 31 March 2025, facilitated by sequential deleveraging of its balance sheet, despite increasing scale of operations, through prudent working capital management.

The Group reported 9% growth in operating income (OI) in FY2025 and 3% in H1 FY2026. It is expected to surpass the pre-Covid levels in FY2026 led by growth in K12 books business segment. The debt coverage metrics have strengthened.

ICRA expects these positive trends to persist, ensuring a comfortable financial risk profile over the medium icon. The rating continues to take cognisance of the Group's strong operational profile with established market position in the K-12 (or schoolbooks) textbook publishing industry, having over eight decades of track record in the industry and experienced promoters.

Established relationships with schools and tie-ups with various authors and professors and a robust distribution network of 3,000 partners strengthen its foothold in pan-India market.

Additionally, the Group's increasing focus on digital offerings, though currently contributing marginally to revenues, positions it well for future competitiveness.

The rating however, remains constrained by the inherent seasonality of operations and elongated working capital cycle on account of lengthy receivable cycle and high inventory requirements (notwithstanding the improving trend in the recent years).

Any material sales return/write-offs could adversely impact its profitability and hence remains a key monitorable.

The rating is constrained by the susceptibility of the business to volatile raw material prices and the intense competition due to the fragmented industry structure. Moreover, the Group is exposed to digital transformation, regulatory risks and piracy.

The digital transformation requires a significant change in content distribution and the content provider's position between retailers and authors. The Group's inability to adapt to the transition faster than its competitors may render its products obsolete or it may lose its competitive edge and market share.

The publishing industry in India faces challenges of piracy and copyright issues, which can lead to significant revenue losses, erode brand value and undermine the return on intellectual property investments.

S Chand and Company is part of the S. Chand Group. It is among India's leading publishers of school and technical books. The company specialises in academic publishing and offers educational services through its subsidiaries.

The company reported a consolidated net loss of Rs 52.72 crore in the quarter ended September 2025 as against net loss of Rs 51.68 crore during the previous quarter ended September 2024. Sales rose 31.78% to Rs 49.35 crore in Q2 FY26 as compared with Q2 FY25.

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