Chartered Capital's Financial Metrics Raise Questions About Long-Term Viability

Mar 10 2025 08:02 AM IST
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Chartered Capital & Investment, a microcap in the finance and NBFC sector, has recently adjusted its evaluation based on financial metrics and market position. The company reported flat performance in Q3 FY24-25, raising concerns about its long-term strength, despite a significant profit increase and attractive valuation ratios.
Chartered Capital & Investment, a microcap player in the finance and non-banking financial company (NBFC) sector, has recently undergone an adjustment in its evaluation. This revision reflects a comprehensive analysis of the company's financial metrics and market position.

In the latest quarter, Q3 FY24-25, Chartered Capital reported flat financial performance, which has raised questions about its long-term fundamental strength. The company has recorded an average Return on Equity (ROE) of 1.35%, indicating challenges in generating returns for shareholders. Despite this, the stock maintains an attractive valuation with a Price to Book Value ratio of 0.4, suggesting it is trading at a discount compared to its peers' historical valuations.

Over the past year, Chartered Capital has generated a return of 4.43%, with profits rising significantly by 79.5%. The PEG ratio stands at 0.2, further highlighting its valuation metrics. Additionally, the technical trend has shown signs of sideways movement, indicating a lack of clear price momentum.

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