Cheviot Company Hits 52-Week Low Amid Declining Sales and Profitability Concerns

Cheviot Company, a microcap player in the textile industry, has seen significant activity today, hitting a new 52-week low of Rs. 992.05. This decline follows a challenging performance trend, with the stock underperforming the broader market, as evidenced by a 1-year return of -17.16% compared to the Sensex's gain of 6.27%.
Today, Cheviot Company opened with a loss of 2.57% and reached an intraday low of Rs. 992.05. The stock has consistently traded below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.

Financial metrics reveal a concerning picture, with net sales declining at an annual rate of -0.81% and operating profit down by -5.51% over the past five years. The company's recent quarterly results showed a significant drop in profit after tax, falling by 80.8%. Additionally, both the inventory turnover ratio and debtors turnover ratio are at their lowest levels, suggesting operational inefficiencies.

Despite its microcap status, domestic mutual funds hold a minimal stake of only 0.01%, reflecting potential caution regarding the company's valuation and business outlook.