Understanding the Current Rating
The 'Sell' rating assigned to Chartered Capital & Investment Ltd indicates a cautious stance for investors, suggesting that the stock may 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. Each of these factors contributes to the overall Mojo Score, which currently stands at 31.0, reflecting a below-average outlook.
Quality Assessment
As of 06 February 2026, the company’s quality grade is categorised as below average. This is primarily due to weak long-term fundamental strength, with an average Return on Equity (ROE) of just 1.54%. Such a low ROE suggests that the company is generating limited profits relative to shareholder equity, which may raise concerns about operational efficiency and profitability sustainability. Additionally, recent quarterly results have been flat, with operating cash flow for the year at a low of ₹-13.55 crores, indicating cash generation challenges.
Valuation Perspective
Despite the quality concerns, the valuation grade is very attractive. This implies that the stock is trading at a relatively low price compared to its intrinsic value or sector benchmarks. For value-oriented investors, this could present an opportunity to acquire shares at a discount. However, the attractive valuation alone does not offset the risks posed by weak fundamentals and financial trends, which must be carefully weighed before making investment decisions.
Financial Trend Analysis
The financial grade is currently flat, reflecting a lack of significant improvement or deterioration in the company’s financial performance. The latest quarterly figures show the lowest Profit Before Depreciation, Interest, and Taxes (PBDIT) at ₹1.14 crore and Profit Before Tax less Other Income (PBT less OI) also at ₹1.14 crore. These subdued earnings metrics highlight the company’s struggle to generate robust profits, which may limit its ability to invest in growth or return value to shareholders.
Technical Outlook
From a technical standpoint, the stock is mildly bearish. Price movements over recent periods have been negative, with a 3-month return of -29.00% and a one-year return of -13.14% as of 06 February 2026. The stock’s performance over shorter intervals also reflects weakness, including a 1-month decline of -5.79% and a year-to-date drop of -6.58%. These trends suggest that market sentiment remains cautious, and the stock may face resistance in regaining upward momentum in the near term.
Performance Summary
Currently, Chartered Capital & Investment Ltd is classified as a microcap within the Non-Banking Financial Company (NBFC) sector. The stock’s recent price stability is reflected in a 0.00% change on the day of analysis, but the broader trend remains negative. Investors should consider the combination of weak quality metrics, flat financial trends, and bearish technical signals alongside the attractive valuation before making portfolio decisions.
Implications for Investors
The 'Sell' rating serves as a cautionary signal for investors, indicating that the stock may not be well positioned for near-term gains. While the valuation appears compelling, the underlying operational challenges and subdued financial performance suggest that risks remain elevated. Investors seeking exposure to the NBFC sector might prefer to explore alternatives with stronger fundamentals and more positive technical trends.
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Sector and Market Context
The NBFC sector has faced headwinds in recent years, including tighter regulatory scrutiny and liquidity pressures. Chartered Capital & Investment Ltd’s performance must be viewed within this broader context, where many peers have struggled to maintain growth and profitability. The company’s microcap status further adds to volatility and liquidity concerns, which investors should factor into their risk assessments.
Looking Ahead
Investors monitoring Chartered Capital & Investment Ltd should keep a close eye on upcoming quarterly results and any strategic initiatives aimed at improving operational efficiency and financial health. Improvements in cash flow generation, profitability, and technical momentum would be necessary to reconsider the current 'Sell' stance. Until then, the cautious rating reflects the need for prudence given the company’s current challenges.
Summary
In summary, Chartered Capital & Investment Ltd’s 'Sell' rating by MarketsMOJO, last updated on 01 December 2025, is supported by below-average quality metrics, a very attractive valuation, flat financial trends, and a mildly bearish technical outlook as of 06 February 2026. This comprehensive assessment provides investors with a clear understanding of the stock’s current position and the factors influencing its recommendation.
Investor Takeaway
For investors, the key takeaway is that while the stock’s valuation may appear enticing, the underlying fundamentals and market sentiment suggest caution. A 'Sell' rating advises a defensive approach, encouraging investors to prioritise capital preservation and consider alternative opportunities with stronger growth prospects and financial stability.
Final Note
MarketsMOJO’s rating system integrates multiple dimensions of analysis to provide a holistic view of stock potential. The current 'Sell' rating for Chartered Capital & Investment Ltd reflects a balanced evaluation of risks and opportunities, helping investors make informed decisions in a complex market environment.
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