2 Undervalued Education Stocks Trading Below Fair Value

India's educational publishing industry has faced a mixed few years, with digital learning adoption competing against steady demand for printed textbooks and stationery tied to the academic calendar. Not every stock in the space carries the same valuation. A screen of listed education stocks against the sector's average price to earnings ratio surfaces two names trading at a steep discount to that benchmark.

Navneet Education and S Chand and Company both currently trade well below the broader education industry PE, despite posting positive earnings. This piece breaks down why each stock screens as undervalued, what the underlying financials show, and the risks that come with owning educational publishing companies.

Click Here – Get Free Investment Predictions

Why These Education Stocks Screen as Undervalued

The education industry currently carries an average price to earnings ratio of close to 35 times trailing earnings for publishing and learning companies in this classification. A stock trading meaningfully below that average, while still posting positive earnings, is a reasonable starting point for a relative valuation screen.

Both companies below clear that bar by a wide margin, a combination not always available among education stocks with positive, if modest, profitability.

The table below lists these two companies alongside their current price, valuation multiple and return ratios.

Company	NSE Ticker	CMP (Rs)	PE Ratio	Sector PE	ROE	Market Cap (Rs Cr)
Navneet Education	NAVNETEDUL	133.12	8.35	35.17	7.15%	2,949
S Chand and Company	SCHAND	137.01	7.16	35.17	7.20%	490

Navneet Education: Publishing and Stationery Combined

Navneet Education publishes textbooks and educational content alongside a meaningful stationery products business sold under its own brands. The stock trades at a price to earnings ratio of 8.35, well below the sector average of 35.17, at a current price of around Rs 133.

Return on equity of 7.15 percent is modest but positive, supported by a debt to equity ratio of just 0.05. On an EPS of Rs 15.96 and book value of Rs 92.32, the price to book multiple works out to 1.44, close to its own book value.

S Chand and Company: Deepest Discount in the Group

S Chand and Company publishes school and higher education textbooks and learning materials across a wide range of subjects and curricula. Its price to earnings ratio of 7.16 is the lowest of the two education stocks in this list, at a current share price of around Rs 137.

Return on equity of 7.20 percent is broadly similar to Navneet Education, and the debt to equity ratio of 0.13 remains low. On an EPS of Rs 19.41 and book value of Rs 298.84, the price to book multiple of 0.46 means the stock trades at less than half its own book value, the deepest discount of the two.

Valuation Snapshot: PE, PB and Dividend Yield

Beyond the headline price to earnings ratio, book value multiples and dividend yield round out the valuation picture for these two companies. S Chand and Company trades at a much steeper discount to book value than Navneet Education, despite similar profitability.

Company	Price to Book	Book Value (Rs)	Dividend Yield	Debt to Equity
Navneet Education	1.44	92.32	1.12%	0.05
S Chand and Company	0.46	298.84	2.88%	0.13

S Chand and Company pays the higher dividend yield of the two and trades well below its own book value, while Navneet Education carries the lower leverage of the pair. Both remain modestly profitable, low debt businesses priced at a significant discount to the broader education sector.

Check Live PE, PB and ROE Data on the Univest Screener

Risks to Consider Before Buying These Education Stocks

A discount to the sector average price to earnings ratio does not remove company specific risk for education stocks exposed to curriculum changes and digital disruption.

Digital Learning Disruption

The gradual shift toward digital and online learning content poses a long term structural risk to printed textbook demand, even as physical books remain dominant in many segments today.

Curriculum and Syllabus Changes

Changes in state or national curricula can require costly content revisions and inventory write downs, disrupting revenue and profitability in the affected academic years.

Seasonal and Working Capital Intensity

Textbook sales are heavily concentrated around the start of the academic year, creating working capital swings and seasonal revenue patterns that can complicate quarterly comparisons.

Paper and Printing Cost Volatility

Paper prices and printing costs can rise sharply during periods of commodity inflation, compressing margins for publishers unable to pass through costs quickly.

How to Track These Education Stocks

Investors evaluating these two names should track annual order volumes ahead of the academic year, working capital cycles, and how the sector average PE moves relative to each company's own multiple over time, rather than relying on the valuation gap in isolation among education stocks. Comparing these numbers regularly is the most reliable way to judge whether the discount to fair value remains intact or has already closed.

Download the Univest iOS App or Univest Android App to track Navneet Education and S Chand share prices live and set price alerts.

Conclusion

Navneet Education and S Chand and Company are the two education stocks currently trading well below the sector's average price to earnings ratio of close to 35 times, while both maintain positive, if modest, return on equity. That combination makes them worth a closer look for investors who already want exposure to India's educational publishing theme, though digital disruption and curriculum change risk mean position sizing and diversification still matter when adding these names to a portfolio.

FAQs on Undervalued Education Stocks

Which education stocks are trading below the sector average PE?

Ans. Navneet Education and S Chand and Company are currently trading well below the education sector's average price to earnings ratio of close to 35 times, based on live NSE and BSE pricing.

Is Navneet Education undervalued compared to its sector?

Ans. Navneet Education trades at a price to earnings ratio of 8.35, far below the sector average of 35.17, while delivering a modest but positive return on equity of 7.15 percent.

Why does S Chand and Company trade below its own book value?

Ans. S Chand and Company trades at a price to book multiple of 0.46, reflecting the market's cautious view of the traditional publishing business, even though its return on equity of 7.20 percent is positive and comparable to Navneet Education.

What is the market capitalisation of S Chand and Company?

Ans. S Chand and Company has a market capitalisation of around Rs 490 crore, with a price to earnings ratio of 7.16 against the sector average of 35.17.

Are these education stocks debt free?

Ans. Navneet Education carries a debt to equity ratio of just 0.05, close to debt free, while S Chand and Company runs a similarly low ratio of 0.13.

What are the main risks in undervalued education stocks?

Ans. The main risks include long term disruption from digital learning content, costly curriculum and syllabus changes, seasonal working capital swings tied to the academic year, and volatility in paper and printing costs.

Is a low PE enough reason to buy an education stock?

Ans. A price to earnings ratio below the sector average is a useful starting screen for education stocks but not a standalone buy signal. Investors should also review order visibility, digital strategy and working capital management before investing.