Buy

Last Updated: 26 Feb 2026, 03:09 pm IST | Report Date: Feb 14, 2026

Cheviot Company Limited Stock Analysis

Name: Cheviot Company Limited (CHEVIOT) Stock Analysis
Brand: NSE India
Rating: 7.5 (1 reviews)

CHEVIOT NSE India

Cheviot Company Limited (CHEVIOT) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

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Cheviot Company demonstrates strong earnings quality with exceptional profitability improvement, delivering PAT of Rs 1,719.55 lakhs in Q3 FY2025-26 versus Rs 344.09 lakhs in Q3 FY2024-25, marking a 400% surge and EPS of Rs 29.43. Revenue from operations grew robustly at 28.48% YoY to Rs 13,886.18 lakhs, while EBITDA margin expanded to 16.21% and net profit margin reached 11.68%, indicating operational leverage and pricing power in the jute manufacturing segment. The company maintains a fortress balance sheet with minimal finance costs of Rs 9.85 lakhs, exceptional interest coverage of 221.34x, and total equity of Rs 53,467.28 lakhs (book value per share Rs 915.11), though the absence of cash flow and working capital metrics limits visibility into cash generation quality. While the 400% PAT jump and recovery from prior quarter FVTPL losses (other income turned positive at Rs 829.72 lakhs) warrant scrutiny for sustainability, the nine-month PAT of Rs 6,074.54 lakhs versus Rs 4,843.53 lakhs prior year confirms a sustained improvement trend rather than one-time windfall.

Based on: Cheviot Company Limited - Financial Results (14/2/2026) (Feb 14, 2026)

+ Key Strengths

Exceptional profitability surge with Q3 FY2025-26 PAT of Rs 1,719.55 lakhs representing a 400% increase over Rs 344.09 lakhs in Q3 FY2024-25, with nine-month PAT at Rs 6,074.54 lakhs versus Rs 4,843.53 lakhs confirming sustained improvement

Strong revenue growth momentum of 28.48% YoY to Rs 13,886.18 lakhs in Q3 FY2025-26, demonstrating robust demand in the jute goods segment

Improved margin profile with EBITDA margin at 16.21%, operating margin at 15.7%, and net profit margin at 11.68%, coupled with healthy gross margin of 37.69% indicating pricing power and operational efficiency

Pristine balance sheet with minimal leverage evidenced by finance costs of only Rs 9.85 lakhs, exceptional interest coverage of 221.34x, and strong equity base of Rs 53,467.28 lakhs with book value per share at Rs 915.11

Recovery in other income to Rs 829.72 lakhs in Q3 from negative other income in prior quarters due to FVTPL investment losses, indicating improved treasury management and investment portfolio stabilization

Single-segment focus on jute goods manufacturing provides operational clarity and management focus without complexity from diversification or subsidiary management

- Key Risks

Absence of critical cash flow metrics (operating cash flow, free cash flow, cash conversion cycle) prevents assessment of earnings quality, cash generation capability, and actual liquidity despite strong reported profitability

Missing working capital components (inventory, receivables, payables) and related turnover ratios limit visibility into operational efficiency and potential working capital stress despite revenue growth

Regulatory uncertainty from New Labour Codes effective 21 November 2025 consolidating 29 legislations, with supporting rules yet to be notified and potential impacts on contract workforce arrangements still under evaluation

Sustainability concerns around 400% PAT jump driven partly by Rs 829.72 lakhs other income recovery from prior FVTPL losses, raising questions about core operating profit contribution versus treasury gains

Single-segment concentration in jute goods (100% revenue) exposes the company to sector-specific cyclicality, commodity price volatility, and lack of diversification buffer against industry downturns

Absence of liquidity ratios (current ratio, quick ratio) and debt metrics (debt-to-equity, debt-to-assets) despite minimal finance costs limits comprehensive assessment of financial flexibility and leverage position

Forward Outlook

The report does not disclose any new strategic initiatives, capacity expansion plans, product launches, or partnerships undertaken during Q3 FY2025-26, nor does it provide explicit forward guidance or upcoming project pipelines for the next 2-4 quarters. The primary forward-looking element is management's ongoing monitoring of New Labour Codes implementation and finalization of Central and State Government rules, with impacts on contract workforce and potential incremental liabilities to be accounted for as developments unfold. Based on current quarter trajectory, the company exhibits accelerating growth momentum with 28.48% revenue growth and 400% PAT surge suggesting strong demand environment in jute goods, though sustainability depends on whether this reflects sustainable industry tailwinds or transient factors. The lack of stated capex commitments, expansion plans, or new growth drivers beyond core jute manufacturing limits visibility into medium-term catalysts, making near-term performance dependent on continuation of current demand trends and raw material cost management. Investors should monitor subsequent quarters for evidence of sustained margin expansion and clarity on whether Q3's exceptional profitability represents a new baseline or temporary peak.

All Scores

Date	Report	Score	Sentiment	AI
Feb 26, 2026	Cheviot Company Limited - Financial Results (14/2/2026)	7.5	Buy	Claude
Cheviot Company demonstrates strong earnings quality with exceptional profitability improvement, delivering PAT of Rs 1,719.55 lakhs in Q3 FY2025-26 versus Rs 344.09 lakhs in Q3 FY2024-25, marking a 400% surge and EPS of Rs 29.43. Revenue from operations grew robustly at 28.48% YoY to Rs 13,886.18 lakhs, while EBITDA margin expanded to 16.21% and net profit margin reached 11.68%, indicating operational leverage and pricing power in the jute manufacturing segment. The company maintains a fortress balance sheet with minimal finance costs of Rs 9.85 lakhs, exceptional interest coverage of 221.34x, and total equity of Rs 53,467.28 lakhs (book value per share Rs 915.11), though the absence of cash flow and working capital metrics limits visibility into cash generation quality. While the 400% PAT jump and recovery from prior quarter FVTPL losses (other income turned positive at Rs 829.72 lakhs) warrant scrutiny for sustainability, the nine-month PAT of Rs 6,074.54 lakhs versus Rs 4,843.53 lakhs prior year confirms a sustained improvement trend rather than one-time windfall. STRENGTHS: Exceptional profitability surge with Q3 FY2025-26 PAT of Rs 1,719.55 lakhs representing a 400% increase over Rs 344.09 lakhs in Q3 FY2024-25, with nine-month PAT at Rs 6,074.54 lakhs versus Rs 4,843.53 lakhs confirming sustained improvement / Strong revenue growth momentum of 28.48% YoY to Rs 13,886.18 lakhs in Q3 FY2025-26, demonstrating robust demand in the jute goods segment / Improved margin profile with EBITDA margin at 16.21%, operating margin at 15.7%, and net profit margin at 11.68%, coupled with healthy gross margin of 37.69% indicating pricing power and operational efficiency / Pristine balance sheet with minimal leverage evidenced by finance costs of only Rs 9.85 lakhs, exceptional interest coverage of 221.34x, and strong equity base of Rs 53,467.28 lakhs with book value per share at Rs 915.11 / Recovery in other income to Rs 829.72 lakhs in Q3 from negative other income in prior quarters due to FVTPL investment losses, indicating improved treasury management and investment portfolio stabilization / Single-segment focus on jute goods manufacturing provides operational clarity and management focus without complexity from diversification or subsidiary management RISKS: Absence of critical cash flow metrics (operating cash flow, free cash flow, cash conversion cycle) prevents assessment of earnings quality, cash generation capability, and actual liquidity despite strong reported profitability / Missing working capital components (inventory, receivables, payables) and related turnover ratios limit visibility into operational efficiency and potential working capital stress despite revenue growth / Regulatory uncertainty from New Labour Codes effective 21 November 2025 consolidating 29 legislations, with supporting rules yet to be notified and potential impacts on contract workforce arrangements still under evaluation / Sustainability concerns around 400% PAT jump driven partly by Rs 829.72 lakhs other income recovery from prior FVTPL losses, raising questions about core operating profit contribution versus treasury gains / Single-segment concentration in jute goods (100% revenue) exposes the company to sector-specific cyclicality, commodity price volatility, and lack of diversification buffer against industry downturns / Absence of liquidity ratios (current ratio, quick ratio) and debt metrics (debt-to-equity, debt-to-assets) despite minimal finance costs limits comprehensive assessment of financial flexibility and leverage position

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.