Moneycontrol Be a Pro
Get App
Last Updated : Nov 26, 2018 10:42 AM IST | Source: Moneycontrol.com

Buy Cheviot, target Rs 892: Rudra Shares and Brokers

The outlook for the current year appears to be promising. We value cheviot at Rs 892, which corresponds to 10x P/E, says Manali Bhatia of Rudra Shares and Brokers.

Moneycontrol Contributor @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Manali Bhatia

The flagship of Cheviot Group witnessed substantial growth in production with better capacity utilisation during the FY18 and significant growth in exports. Cheviot's export oriented unit at Falta Special Economic Zone has been at ease.

It offers a series of jute shopping bags, pick according to need, essentially for promotional, fashion, beach, etc. Efforts are being made to increase customer base in conventional and diversified hessian fabrics.

Close

The company has reported net sales of Rs 101.84 crore during the quarter ended September 30, 2018 as compared to Rs 90.44 crore in the previous quarter. Cheviot has a negligible debt with low equity and around Rs 250 crore of investments, is financially sound.

Moreover, a nod to raise jute packaging for food grains to 100 percent from 80 percent and 20 percent for sugar in 2018-19 would provide a push to the stock. Barring unforeseen circumstances, the outlook for the current year appears to be promising. We value cheviot at Rs 892, which corresponds to 10x P/E.

The author is a senior research analyst at Rudra Shares and Brokers.

Disclosure: Rudra or its research analysts, or his/her relative or associate do not have any direct or indirect financial interest nor any other material conflict of interest at the time of stock recommendation, in the subject company. Also, Rudra or its research analysts, or his/her relative or associates does not have actual/beneficial ownership of one percent or more securities of the subject company. However, Rudra or its research analysts, or his/her relative or associate may have positions In Futures & Options.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.



LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.
First Published on Nov 26, 2018 10:42 am
Loading...
Follow us on
Available On