S Chand is a Money Roller or Money Loser?


S Chand which was considered as one of the top opportunity for the education sector has been on downward trail ever since the IPO.

Newspaper and the Research houses which took a very positive stance on the company has all been backfired. Even some of the marque investors are having the toughest time with the stock.

Here is a Way2Wealth report and NirmalBang Report talking in details about the company.

On the contrary the most of the estimates have not been met and it looks like either the expectations were high on performance or relative growth was not achieved.

Most of the initial investors have lost almost 80% of their investment. I came across certain comments saying that, “Mutual Fund investors are acting like Retail Investors”

I am also still accessing the company inspite of this not being in my radar because of low capital efficiency and moderate growth. Market Cap to sales is still on a higher side of the equation. I would look at following this company on a quarter to quarter basis. Also would try to talk to the management.

Positives are it’s trading at .50 of BV along with reduced debt. I would keep in deep value investing list and monitor and take a call on the same.

I would appreciate to listen to your view point on the same.