Cheviot Company Receives 'Hold' Rating from MarketsMOJO Based on Strong Financials and Moderate Growth

Cheviot Company, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on May 13, 2024. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times. The stock is also in a Mildly Bullish range and its MACD and KST technical factors are Bullish.
Attractive valuation is another factor contributing to the 'Hold' rating, with a ROE of 11.5 and a 1.3 Price to Book Value. However, the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 12.30%, while its profits have risen by 22.1%. The PEG ratio of the company is 0.5.

Despite these positive factors, Cheviot Company has shown poor long-term growth with Net Sales and Operating profit growing at an annual rate of 3.67% and 3.81% respectively over the last 5 years. The company has also declared negative results for the last 8 consecutive quarters. Its CASH AND CASH EQUIVALENTS(HY) is at its lowest at Rs 4.91 cr, while NET SALES(Q) and PBDIT(Q) are also at their lowest at Rs 98.41 cr and Rs 9.24 cr respectively.

It is worth noting that despite being a microcap company, domestic mutual funds hold only 0.01% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth on-the-ground research on companies.

In the last 1 year, Cheviot Company has underperformed the market, generating a return of 12.30% compared to the market (BSE 500) returns of 31.64%. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold' rating.