Chartered Capital & Investment Ltd is Rated Sell

Current Rating and Its Significance

The 'Sell' rating assigned to Chartered Capital & Investment Ltd indicates a cautious stance for investors, suggesting that the stock is expected to underperform relative to the broader market or its sector peers. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised on 01 Dec 2025, reflecting a significant change in the company’s mojo score from 51 (Hold) to 31 (Sell), signalling a deterioration in overall outlook.

How the Stock Looks Today: Quality Assessment

As of 26 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 suggests that the company is generating limited returns on shareholders’ equity, which is a critical measure of operational efficiency and profitability. Additionally, the recent quarterly results have been lacklustre, with operating cash flow for the year at a negative ₹13.55 crores, and Profit Before Depreciation, Interest, and Taxes (PBDIT) at a low ₹1.14 crore. These figures highlight ongoing challenges in generating consistent earnings and cash flows, which weigh heavily on the quality grade.

Valuation: Attractive but Reflective of Risks

Despite the weak fundamentals, the valuation grade for Chartered Capital & Investment Ltd is currently very attractive. This suggests that the stock is trading at a price level that may offer value relative to its earnings and asset base. However, investors should interpret this attractiveness cautiously, as low valuation often reflects underlying risks or market concerns about the company’s future prospects. The microcap status of the company also implies higher volatility and liquidity risks, which can affect price stability and investor confidence.

Financial Trend: Flat Performance Amidst Market Challenges

The financial trend for Chartered Capital & Investment Ltd is flat, indicating little to no improvement in key financial metrics over recent periods. The company’s quarterly performance has shown minimal growth, with the latest results marking some of the lowest operating cash flows and profits recorded. This stagnation is further reflected in the stock’s returns: as of 26 January 2026, the stock has declined by 6.04% over the past year, underperforming the BSE500 index, which has delivered a positive return of 5.14% in the same period. Such underperformance signals that the company has struggled to keep pace with broader market gains, raising concerns about its growth trajectory.

Technical Outlook: Mildly Bearish Sentiment

From a technical perspective, the stock is graded as mildly bearish. Recent price movements have been negative, with a one-day decline of 4.72% and a one-month drop of 15.09%. The three-month performance is even more concerning, showing a steep fall of 38.47%. These trends suggest that market sentiment towards the stock remains subdued, with selling pressure outweighing buying interest. Technical indicators likely reflect this bearish momentum, signalling caution for short-term traders and investors alike.

Summary for Investors

In summary, Chartered Capital & Investment Ltd’s current 'Sell' rating by MarketsMOJO is grounded in a combination of weak quality metrics, flat financial trends, and a mildly bearish technical outlook, despite an attractive valuation. For investors, this rating implies that the stock may face continued headwinds and could underperform relative to other investment opportunities in the Non Banking Financial Company (NBFC) sector. The microcap nature of the company adds an additional layer of risk, making it essential for investors to carefully weigh the potential rewards against the inherent uncertainties.

Market Context and Sector Considerations

Operating within the NBFC sector, Chartered Capital & Investment Ltd faces sector-specific challenges such as regulatory scrutiny, credit risk, and economic cycles impacting lending activities. The company’s underwhelming financial performance and weak returns relative to the broader market highlight the need for investors to remain vigilant. While valuation metrics may appear enticing, the fundamental and technical signals suggest a cautious approach is warranted at this juncture.

Investor Takeaway

Investors considering Chartered Capital & Investment Ltd should prioritise a thorough evaluation of the company’s current financial health and market position. The 'Sell' rating reflects a prudent stance given the company’s weak profitability, flat financial trends, and negative price momentum. While the valuation may tempt value-oriented investors, the risks associated with the company’s operational challenges and sector dynamics suggest that a cautious approach is advisable. Monitoring future quarterly results and any strategic initiatives by management will be critical to reassessing the stock’s outlook.

Performance Metrics at a Glance

As of 26 January 2026, the stock’s recent returns are as follows: a one-day decline of 4.72%, one-week drop of 5.10%, one-month fall of 15.09%, three-month decrease of 38.47%, six-month decline of 3.97%, year-to-date loss of 7.70%, and a one-year negative return of 6.04%. These figures underscore the stock’s underperformance relative to the BSE500 index, which has gained 5.14% over the past year.

Conclusion

Chartered Capital & Investment Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 01 Dec 2025, is supported by a comprehensive analysis of its quality, valuation, financial trend, and technical outlook as of 26 January 2026. Investors should interpret this rating as a signal to exercise caution and consider alternative investment opportunities within the NBFC sector or broader market that demonstrate stronger fundamentals and more favourable technical indicators.

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