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.
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.
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.
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.
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