Cheviot Co. Ltd. (CHEVIOT) AI Stock Analysis

• Market Cap: ₹5.87B
• Dividend Yield: 0.45%
• Average Volume (3M): 13.65K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.91
• Revenue Growth: 21.72%
• EPS Growth: -26.78%
• Country: IN
• Employees: 4,098
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 25.40
• Shares Outstanding: 5,841,875
• 10 Day Avg. Volume: 411
• 30 Day Avg. Volume: 13,646
• PEG Ratio: -0.70
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 50.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹1,070.00 ▲(1.50% Upside)

Cheviot Co. Ltd. has a stable financial foundation with strong equity and low debt, but faces challenges in revenue consistency and cash flow conversion. Technical indicators suggest a bearish trend, while valuation metrics show the stock is reasonably priced. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Strength

A high equity ratio and low debt provide durable financial flexibility for Cheviot, allowing it to fund inventory cycles, absorb retail demand volatility, and invest in brand distribution or store initiatives without heavy reliance on external financing. This supports long-term stability and strategic optionality.

Gross Margin Quality

Sustainably healthy gross margins suggest Cheviot has effective sourcing, pricing and cost control in apparel distribution. Strong product-level profitability helps the company withstand SG&A pressures, fund marketing or omnichannel investments, and preserve operating leverage across business cycles.

Recent Revenue Growth

A recent ~22% reported revenue increase indicates the company can expand top-line through distribution or retail channels, showing market traction. If management sustains this growth and improves cash conversion, Cheviot can leverage scale to improve margins and fund long-term brand investments.

Negative Factors

Free Cash Flow Decline

Falling free cash flow growth is a structural concern for a retail distributor: it limits capacity to invest in inventory, stores, and digital channels, raises dependence on working capital or financing, and reduces buffer for downturns, weakening long-term operational resilience.

Revenue Volatility

Inconsistent revenue and a recent decline point to demand cyclicality or execution gaps in merchandising and brand management. For apparel distribution, persistent top-line instability undermines forecasting, inventory turns, and supplier leverage, constraining sustainable margin and growth planning.

Eroding Net Margin

A falling net margin reduces retained earnings and lowers return on equity, limiting funds for reinvestment or dividend policy. If driven by structural cost or non-operating pressures, margin erosion can persistently constrain the company's ability to fund brand development and compete on promotional intensity.

Cheviot Co. Ltd. Business Overview & Revenue Model

Company Description

Cheviot Company Limited engages in the manufacture and sale of jute goods in India. The company offers jute shopping bags, jute yarns, Hessian cloth and bags, and sacking bags; and decorative fabrics. It also exports its products. The company was formerly known as Budge Budge Amalgamated Mills Limited. Cheviot Company Limited was incorporated in 1897 and is headquartered in Kolkata, India. Cheviot Company Limited is a subsidiary of Harsh Investments Private Limited.

How the Company Makes Money

Cheviot Co. Ltd. generates revenue through multiple streams, primarily from the manufacturing and sale of textile products. Their core revenue comes from the production of woolen fabrics and garments, which are sold to retailers and wholesalers. In addition to direct sales, Cheviot capitalizes on partnerships with fashion brands and retailers for co-branded products and private label manufacturing. The company also benefits from export opportunities, supplying textiles to various countries, which enhances its earnings. Seasonal demand for certain products, coupled with strategic marketing initiatives, further contributes to Cheviot's financial performance. Additionally, investing in sustainable practices has attracted a niche market willing to pay a premium for eco-friendly products, thereby boosting revenue.

Cheviot Co. Ltd. Financial Statement Overview

Summary

Cheviot Co. Ltd. demonstrates a stable financial position with strong equity and low debt levels, providing a solid foundation for long-term growth. However, challenges in maintaining consistent revenue growth and converting earnings into cash highlight areas for improvement. Focusing on enhancing profitability and cash flow efficiency will be crucial for sustaining future growth and financial health.

Income Statement

Cheviot Co. Ltd. shows a mixed performance in its income statement. The gross profit margin is healthy, indicating efficient production and cost management. However, the net profit margin has declined over the years, suggesting challenges in controlling non-operating expenses or taxes. Revenue growth has been inconsistent, with a notable decline in the latest year, which could be a concern for future profitability. EBIT and EBITDA margins indicate moderate operational efficiency, but there is room for improvement.

Balance Sheet

The balance sheet of Cheviot Co. Ltd. reflects a strong equity position with a high equity ratio, indicating financial stability and low leverage. The debt-to-equity ratio is low, suggesting prudent financial management and minimal reliance on debt financing. Return on equity has been positive, although it has fluctuated, which may indicate variability in profitability. Overall, the company maintains a solid financial foundation with manageable liabilities.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could impact the company's ability to fund operations and investments. The operating cash flow to net income ratio is below optimal levels, indicating potential issues in converting earnings into cash. However, the company has maintained a positive free cash flow to net income ratio, suggesting some ability to generate cash relative to its earnings. Improvements in cash flow management are necessary to enhance liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.64B	4.39B	4.63B	5.60B	5.62B	3.91B
Gross Profit	1.99B	1.31B	2.06B	2.35B	2.34B	1.49B
EBITDA	872.42M	821.07M	918.75M	761.87M	1.07B	979.57M
Net Income	599.36M	577.42M	693.94M	544.61M	793.49M	757.23M
Balance Sheet
Total Assets	0.00	7.13B	6.81B	6.22B	6.06B	7.39B
Cash, Cash Equivalents and Short-Term Investments	421.70M	439.45M	514.97M	762.27M	777.44M	1.42B
Total Debt	0.00	66.83M	89.28M	68.01M	85.33M	96.72M
Total Liabilities	-6.51B	623.28M	547.31M	491.27M	530.79M	571.24M
Stockholders Equity	6.51B	6.51B	6.26B	5.73B	5.53B	6.82B
Cash Flow
Free Cash Flow	0.00	121.01M	267.71M	308.97M	455.11M	270.18M
Operating Cash Flow	0.00	293.04M	359.19M	550.18M	559.75M	348.42M
Investing Cash Flow	0.00	249.70M	-238.93M	-222.41M	1.13B	-232.80M
Financing Cash Flow	0.00	-459.83M	-143.76M	-383.47M	-1.64B	-189.14M

Cheviot Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1054.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CHEVIOT, the sentiment is Positive. The current price of 1054.15 is above the 20-day moving average (MA) of 1011.75, above the 50-day MA of 1047.65, and below the 200-day MA of 1116.35, indicating a neutral trend. The MACD of -12.93 indicates Negative momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 58.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CHEVIOT.

Cheviot Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRISDOREME	71 Outperform	₹6.33B	43.82	―	―	12.30%	92.63%
RSWM	64 Neutral	₹6.43B	88.56	―	―	5.54%	―
RUBYMILLS	64 Neutral	₹6.36B	11.83	―	0.78%	31.27%	38.24%
CHEVIOT	63 Neutral	₹5.87B	10.43	―	0.45%	21.72%	-26.78%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
PRECOT	56 Neutral	₹3.94B	12.57	―	0.70%	-8.05%	-23.39%
SUTLEJTEX	46 Neutral	₹4.69B	-5.72	―	―	-1.07%	-5.16%