Chartered Capital & Investment operates within the NBFC sector, which has witnessed varied performance across its constituents amid evolving economic conditions. The company’s current market price stands at ₹312.00, down from the previous close of ₹328.00, with a 52-week high of ₹439.00 and a low of ₹200.05. The stock’s recent price movement reflects a day change of -4.88%, signalling some short-term pressure.
Quality Assessment
Quality metrics for Chartered Capital & Investment reveal a mixed picture. The company’s return on equity (ROE) averages at 1.54%, indicating modest profitability relative to shareholder equity. This figure is relatively low compared to industry benchmarks, suggesting limited efficiency in generating returns from equity capital. However, the company’s profit after tax (PAT) for the latest six months is ₹3.65 crores, which corresponds to a growth rate of 55.98%. This growth in PAT highlights some operational strength despite other challenges.
On the downside, operating cash flow for the year is at a low of ₹-13.55 crores, signalling cash generation issues that could affect liquidity and operational flexibility. Additionally, quarterly earnings before depreciation, interest, and taxes (PBDIT) and profit before tax excluding other income (PBT less OI) are both at ₹1.14 crores, marking the lowest levels in recent periods. These figures point to constrained earnings quality and operational challenges that investors should consider carefully.
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Valuation Perspective
From a valuation standpoint, Chartered Capital & Investment presents an attractive profile. The company’s price-to-book value ratio stands at 0.6, which is below the average for its peer group, indicating that the stock is trading at a discount relative to its book value. This valuation metric suggests that the market may be pricing in some risks or uncertainties, but it also offers potential value for investors seeking exposure to the NBFC sector.
Moreover, the company’s ROE of 4% in the recent period supports the notion of reasonable valuation, as it reflects some capacity to generate returns on equity. The price-to-earnings-growth (PEG) ratio is 1.4, which is within a moderate range, implying that the stock’s price is somewhat aligned with its earnings growth prospects. Over the past year, Chartered Capital & Investment has delivered a return of 11.93%, outperforming the Sensex’s 9.81% return during the same period. This relative outperformance underscores the stock’s potential appeal despite recent volatility.
Financial Trend Analysis
The company’s financial trend has shifted from positive to flat in the most recent quarter ending September 2025. The flat performance is evident in the stagnation of key financial indicators such as PBDIT and PBT less other income, both registering their lowest quarterly values at ₹1.14 crores. This stagnation contrasts with the previous three-month period, where the company exhibited a more positive trajectory.
While the PAT growth over six months remains robust at nearly 56%, the flat quarterly trend suggests that momentum may be slowing. The operating cash flow’s negative figure of ₹-13.55 crores further emphasises the challenges in converting earnings into cash, which is critical for sustaining operations and funding growth initiatives. Investors should weigh these factors carefully, as flat financial trends can signal a period of consolidation or potential headwinds ahead.
Technical Indicators
Technical analysis of Chartered Capital & Investment reveals a nuanced picture. Weekly and monthly Moving Average Convergence Divergence (MACD) indicators remain bullish, signalling underlying positive momentum in the stock’s price movement. However, the Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, indicating neither overbought nor oversold conditions at present.
Bollinger Bands on weekly and monthly timeframes suggest a mildly bullish stance, reflecting moderate upward price pressure but with some caution. Daily moving averages also align with a mildly bullish outlook, supporting the notion of gradual positive momentum. Conversely, the Know Sure Thing (KST) indicator presents a mixed view: bullish on the weekly chart but mildly bearish on the monthly chart, highlighting some divergence in short- and medium-term trends.
Dow Theory analysis on both weekly and monthly scales indicates no definitive trend, suggesting that the stock may be in a consolidation phase. The On-Balance Volume (OBV) data is inconclusive, providing limited insight into volume-driven price movements. Overall, the technical landscape points to a cautiously optimistic scenario with some indicators favouring mild bullishness while others remain neutral or mixed.
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Long-Term Performance and Shareholding
Examining the longer-term returns, Chartered Capital & Investment has demonstrated consistent performance. Over the last three years, the stock has generated a cumulative return of 121.28%, significantly outpacing the Sensex’s 38.15% return in the same period. Extending the horizon to five and ten years, the stock’s returns stand at 428.81% and 672.28% respectively, compared to the Sensex’s 95.38% and 229.64%. These figures highlight the company’s capacity to deliver substantial value over extended periods.
Majority ownership remains with promoters, which often implies a stable controlling interest and potential alignment with shareholder interests. However, the company’s weak long-term fundamental strength, as reflected in the modest ROE, warrants attention from investors seeking sustainable profitability.
In summary, the recent revision in Chartered Capital & Investment’s evaluation metrics reflects a complex interplay of flat financial trends, attractive valuation, mixed quality indicators, and cautiously optimistic technical signals. While the company’s profitability growth and valuation metrics offer some positives, challenges in cash flow and earnings quality temper enthusiasm. The technical outlook suggests mild bullishness but also highlights areas of uncertainty.
Investors considering exposure to Chartered Capital & Investment should carefully analyse these factors in the context of their investment objectives and risk tolerance. The stock’s historical outperformance relative to the Sensex and peers may appeal to those with a longer-term horizon, while the current flat financial trend and mixed technical signals advise prudence in the near term.
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