Understanding the Current Rating
The 'Sell' rating assigned to Chartered Capital & Investment Ltd indicates a cautious stance for investors. This recommendation suggests that the stock may underperform relative to the broader market or its sector peers in the near term. It is important to note that this rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock's investment potential.
Quality Assessment
As of 20 February 2026, the company’s quality grade is considered below average. This reflects concerns about its 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 weigh on investor confidence and future growth prospects.
Valuation Perspective
Despite the quality concerns, the valuation grade for Chartered Capital & Investment Ltd is very attractive. This indicates that the stock is trading at a price level that may offer value relative to its earnings, assets, or cash flows. For value-oriented investors, this could represent an opportunity to acquire shares at a discount compared to intrinsic worth. However, attractive valuation alone does not guarantee positive returns, especially if other fundamentals remain weak.
Financial Trend Analysis
The financial grade is positive, reflecting encouraging trends in the company’s recent financial performance. As of 20 February 2026, the stock has delivered a 1-year return of +5.28%, with a 6-month gain of +9.74%. The year-to-date return also stands at +4.88%, signalling some resilience in the stock price despite sector challenges. These figures suggest that the company has shown some improvement or stability in its financial health over recent periods.
Technical Outlook
From a technical standpoint, the stock is mildly bearish. The latest daily price movement shows a decline of -3.17%, and the one-week return is down by -3.51%. Over the past three months, the stock has experienced a negative return of -7.53%, indicating some short-term selling pressure. This technical weakness may reflect market sentiment or external factors impacting the Non Banking Financial Company (NBFC) sector, which investors should monitor closely.
Sector and Market Context
Chartered Capital & Investment Ltd operates within the NBFC sector, a segment that has faced volatility due to regulatory changes and macroeconomic factors. As a microcap entity, the company is more susceptible to market fluctuations and liquidity constraints compared to larger peers. Investors should weigh these sector-specific risks alongside the company’s fundamentals when considering their portfolio allocation.
Summary of Current Stock Returns
As of 20 February 2026, the stock’s performance shows mixed signals. While short-term returns over one day and one week are negative, the one-month and six-month returns are positive at +7.84% and +9.74% respectively. The one-year return of +5.28% indicates modest gains over a longer horizon. These figures suggest that while the stock has faced recent volatility, it has managed to deliver some positive returns over intermediate periods.
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Implications for Investors
The 'Sell' rating on Chartered Capital & Investment Ltd advises investors to exercise caution. The combination of below-average quality and a mildly bearish technical outlook suggests potential risks ahead. However, the very attractive valuation and positive financial trend indicate that the stock may hold some value for investors with a higher risk tolerance or those seeking entry points in the NBFC sector.
Investors should consider their investment horizon and risk appetite carefully. Those prioritising capital preservation might prefer to avoid or reduce exposure to this stock until clearer signs of fundamental improvement emerge. Conversely, value investors might monitor the stock for potential rebounds, given its attractive price levels and recent positive returns over six months and one year.
Conclusion
In summary, Chartered Capital & Investment Ltd’s current 'Sell' rating reflects a nuanced view of its investment merits. While the company faces challenges in quality and technical momentum, its valuation and financial trends offer some optimism. As of 20 February 2026, investors should weigh these factors carefully and stay informed on sector developments and company-specific news to make well-rounded decisions.
Key Metrics at a Glance (As of 20 February 2026)
- Mojo Score: 37.0 (Sell Grade)
- Return on Equity (ROE): 1.54%
- 1-Day Return: -3.17%
- 1-Week Return: -3.51%
- 1-Month Return: +7.84%
- 3-Month Return: -7.53%
- 6-Month Return: +9.74%
- Year-to-Date Return: +4.88%
- 1-Year Return: +5.28%
These figures provide a snapshot of the stock’s current market standing and should be considered alongside broader market conditions and individual investment goals.
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