Rating Overview and Context
On 01 December 2025, MarketsMOJO revised the rating for Chartered Capital & Investment Ltd from 'Hold' to 'Sell', accompanied by a decrease in the Mojo Score from 51 to 47. This adjustment reflects a reassessment of the company's overall investment appeal based on a comprehensive evaluation of multiple parameters. It is important to note that while the rating change date is fixed, the data and insights discussed below are current as of 15 January 2026, ensuring investors receive the latest information to guide their decisions.
Current Fundamentals and Quality Assessment
As of 15 January 2026, Chartered Capital & Investment Ltd exhibits below-average quality metrics. The company’s long-term fundamental strength remains weak, with an average Return on Equity (ROE) of just 1.54%. This low ROE indicates limited profitability relative to shareholder equity, signalling challenges in generating sustainable returns. Additionally, the latest quarterly results for September 2025 reveal flat financial performance, with operating cash flow for the year at a low of ₹-13.55 crores, and Profit Before Depreciation, Interest, and Taxes (PBDIT) at ₹1.14 crore, marking the lowest levels recorded. Profit Before Tax excluding other income also stood at ₹1.14 crore, underscoring subdued earnings momentum.
Valuation Perspective
Despite the weak fundamentals, the valuation grade for Chartered Capital & Investment Ltd is classified as very attractive. This suggests that the stock is trading at a price level that may offer value relative to its earnings and asset base. Investors seeking bargains in the Non-Banking Financial Company (NBFC) sector might find the current price appealing, especially given the microcap status of the company, which often entails higher volatility but also potential for upside if operational improvements materialise.
Financial Trend and Stability
The financial trend for the company is currently flat, indicating a lack of significant growth or deterioration in key financial metrics over recent periods. This stagnation is reflected in the modest stock returns: as of 15 January 2026, the stock has delivered a 1-year return of -5.69%, with a 6-month gain of 5.58%, but a notable 3-month decline of -25.51%. Year-to-date, the stock has appreciated by 1.07%, while the 1-month return stands at -5.02%. These mixed returns highlight a volatile performance pattern, which may be influenced by sector-specific challenges and company-specific operational issues.
Technical Outlook
From a technical standpoint, the stock is mildly bullish. This suggests that short-term price movements show some positive momentum, potentially driven by market sentiment or speculative interest. However, this mild bullishness is insufficient to offset the concerns raised by the fundamental and financial trend assessments. Investors should weigh this technical optimism against the broader context of weak quality and flat financial trends before making investment decisions.
Implications of the 'Sell' Rating
The 'Sell' rating assigned by MarketsMOJO indicates that the stock is currently considered unattractive for investors seeking capital appreciation or stable returns. This rating reflects a cautious stance, advising investors to consider reducing exposure or avoiding new positions until there is clear evidence of improvement in the company’s fundamentals and financial trajectory. The combination of below-average quality, flat financial trends, and only mild technical support underpins this recommendation.
Sector and Market Context
Operating within the NBFC sector, Chartered Capital & Investment Ltd faces a competitive and regulatory environment that can impact earnings stability and growth prospects. Microcap stocks in this sector often experience heightened volatility and liquidity constraints, which can exacerbate price swings. Investors should consider these sector-specific risks alongside the company’s individual performance metrics when evaluating the stock.
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Investor Takeaway
For investors, the current 'Sell' rating on Chartered Capital & Investment Ltd serves as a signal to exercise caution. While the valuation appears attractive, the underlying quality and financial trends do not support a confident buy stance at this time. The mild technical bullishness may offer short-term trading opportunities, but longer-term investors should prioritise companies with stronger fundamentals and clearer growth trajectories.
Monitoring future quarterly results and sector developments will be crucial to reassessing the stock’s outlook. Any meaningful improvement in profitability, cash flow generation, or operational efficiency could warrant a re-evaluation of the rating. Until then, the prudent approach aligns with the current recommendation to limit exposure.
Summary of Key Metrics as of 15 January 2026
- Mojo Score: 47.0 (Sell Grade)
- Market Capitalisation: Microcap
- Quality Grade: Below Average
- Valuation Grade: Very Attractive
- Financial Grade: Flat
- Technical Grade: Mildly Bullish
- 1-Year Return: -5.69%
- 6-Month Return: +5.58%
- 3-Month Return: -25.51%
- Operating Cash Flow (Year): ₹-13.55 crores
- PBDIT (Quarter): ₹1.14 crore
- PBT Less Other Income (Quarter): ₹1.14 crore
These figures collectively illustrate the challenges and opportunities facing Chartered Capital & Investment Ltd in the current market environment.
Conclusion
In conclusion, Chartered Capital & Investment Ltd’s 'Sell' rating reflects a comprehensive assessment of its current financial health, valuation, and market positioning. Investors should carefully consider these factors in the context of their portfolio objectives and risk tolerance. While the stock’s valuation may tempt value-oriented investors, the prevailing fundamental weaknesses and flat financial trends counsel prudence.
Continued monitoring of the company’s quarterly performance and sector dynamics will be essential to identify any shifts that could influence future recommendations.
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