Target: ₹338

CMP: ₹248.30

National Curriculam Framework (NCF) implementation likely to result in significant volume growth, as 2nd hand book market would turn redundant and new SKUs will be launched.

We increase our FY25 EPS estimates by 21 per cent as NCF implementation would make second hand books market redundant and result-in significant volume delta. Further, given the overhaul in curriculum, we expect new SKUs to get launched providing additional volume kicker.

Substantial yield advantage is also expected, as repricing at higher level becomes easier post curriculum revamp.

We introduce FY26 projections, as we expect adoption of new curriculum to gather pace in a phased manner. We expect sales/EBITDA CAGR of 17 per cent/26 per cent over FY23-FY26, as policy change is likely to result in secular growth for next 2-3 years.

S Chand has a net cash BS and trades at attractive valuations of 9.5x/8.2x on our FY25/FY26 EPS. We maintain ‘BUY’ with a revised TP of ₹338 (earlier ₹260), as we roll forward to Sep-25E (target P/E multiple intact at 12x).