Cheviot Company Receives 'Hold' Rating from MarketsMOJO, Shows Positive Valuation and Returns, But Poor Long-Term Growth

Cheviot Company, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on September 27, 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 both Bullish. In terms of valuation, Cheviot Company has an attractive ROE of 12.6 and a 1.3 Price to Book Value. However, the stock is currently trading at a premium compared to its average historical valuations. Over the past year, the stock has generated a return of 21.15%, while its profits have risen by 28.8%. The PEG ratio of the company is 0.4. Despite these positive factors, Cheviot Company has shown poor long-term growth with Net Sales growing at an annual rate of 1.29% and Operating profit at 3.81% over the last 5 years. In addition, the company's results in June 2024 were negative, with the lowest OPERATING CF(Y) at Rs 35.92 Cr and CASH AND CASH EQUIVALENTS(HY) at Rs 2.95 cr. The NET SALES(Q) were also at their lowest at Rs 94.72 cr. In the last 1 year, Cheviot Company has underperformed the market, generating a return of 21.15% compared to the market (BSE 500) returns of 40.53%. While the company's current rating is 'Hold', investors should carefully consider the company's long-term growth and financial performance before making any investment decisions.