Chartered Capital & Investment Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO currently assigns a 'Sell' rating to Chartered Capital & Investment Ltd, reflecting a cautious stance towards the stock. This rating indicates that, based on a thorough evaluation of multiple parameters, the stock is expected to underperform relative to the broader market or its sector peers in the near term. Investors are advised to consider this recommendation carefully, especially in the context of their portfolio risk tolerance and investment horizon.

Rating Update Context

The rating was revised to 'Sell' on 01 December 2025, with the Mojo Score declining by 4 points from 51 to 47. This adjustment reflects a reassessment of the company's prospects based on evolving financial and market conditions. It is important to note that while the rating change date is fixed, the analysis below incorporates the most recent data available as of 04 January 2026, ensuring an up-to-date perspective.

Here's How the Stock Looks Today

As of 04 January 2026, Chartered Capital & Investment Ltd remains a microcap entity operating within the Non Banking Financial Company (NBFC) sector. The stock has experienced mixed performance over various time frames, with a one-day gain of 2.97% contrasting with a one-month decline of 17.77% and a one-year negative return of 6.83%. This underperformance is notable when compared to the BSE500 index, which has delivered a positive 5.35% return over the same one-year period.

Quality Assessment

The quality grade assigned to Chartered Capital & Investment Ltd is below average. This reflects concerns regarding the company’s long-term fundamental strength. Specifically, the average Return on Equity (ROE) stands at a modest 1.54%, signalling limited profitability relative to shareholder equity. Such a low ROE suggests that the company is generating minimal returns on invested capital, which may constrain its ability to grow or reward investors sustainably.

Valuation Perspective

In contrast to its quality concerns, the stock’s valuation grade is considered very attractive. This implies that, based on current price levels relative to earnings, book value, or other valuation metrics, the stock may be undervalued compared to its intrinsic worth or sector peers. For value-oriented investors, this presents a potential opportunity, although it must be weighed against the company’s fundamental challenges and market risks.

Financial Trend Analysis

The financial grade for Chartered Capital & Investment Ltd is flat, indicating a lack of significant improvement or deterioration in recent financial performance. The latest quarterly results, as of September 2025, show subdued operational cash flows and profitability. Operating cash flow for the year was at a low of ₹-13.55 crores, while Profit Before Depreciation, Interest, and Taxes (PBDIT) and Profit Before Tax excluding other income both stood at ₹1.14 crore, marking the lowest levels recorded. These figures highlight ongoing challenges in generating robust earnings and cash flow.

Technical Outlook

From a technical standpoint, the stock exhibits a mildly bullish grade. This suggests that recent price movements and chart patterns show some positive momentum or support levels, which could provide short-term trading opportunities. However, this technical optimism is tempered by the broader fundamental and financial concerns, advising caution for investors relying solely on technical signals.

Stock Performance Summary

Examining the stock’s returns as of 04 January 2026 reveals a mixed picture. While the stock gained 2.97% on the most recent trading day, it has declined by 4.76% over the past week and 17.77% over the last month. The six-month return is marginally positive at 0.93%, but the one-year return remains negative at -6.83%. This underperformance relative to the broader market index underscores the challenges faced by the company in delivering shareholder value.

What This Rating Means for Investors

The 'Sell' rating on Chartered Capital & Investment Ltd signals that investors should exercise caution. The combination of below-average quality, flat financial trends, and underwhelming stock returns suggests that the company faces significant headwinds. Although the valuation appears attractive, this alone does not offset the risks posed by weak profitability and cash flow challenges.

Investors considering this stock should carefully evaluate their risk appetite and investment objectives. Those with a higher tolerance for volatility and a focus on value opportunities might find the current price levels worth monitoring. Conversely, more risk-averse investors may prefer to avoid or reduce exposure until clearer signs of financial improvement and sustained operational strength emerge.

Sector and Market Context

Operating within the NBFC sector, Chartered Capital & Investment Ltd is subject to regulatory, credit, and market risks typical of non-banking financial institutions. The sector has experienced varied performance recently, with some companies demonstrating resilience and growth, while others face pressure from asset quality and liquidity concerns. Against this backdrop, the company's current fundamentals and stock performance place it in a cautious category relative to peers.

Conclusion

In summary, Chartered Capital & Investment Ltd’s 'Sell' rating reflects a comprehensive assessment of its current financial health, valuation, and market performance as of 04 January 2026. While the stock’s valuation is appealing, the underlying quality and financial trends warrant prudence. Investors should closely monitor upcoming quarterly results and sector developments to reassess the stock’s outlook in the coming months.

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