Cheviot Co. Ltd. (CHEVIOT) AI Stock Analysis

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Cheviot Co. Ltd.

(NSE:CHEVIOT)

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Rating:78Outperform

Price Target:INR 1,333.00▲(24.81% Upside)

Action:reiterated

Date:08/25/26

The score is led by strong financial resilience from a very low-debt balance sheet and steady equity growth, supported by attractive valuation (low P/E and a solid dividend yield). Offsetting factors include margin compression and declining free cash flow in 2026, while technicals are positive but reflect only moderate momentum.

Positive Factors

Very low financial leverageThe extremely low-debt structure limits interest burden and refinancing risk, while sustained equity growth provides a substantial cushion for operations, investment and future downturns.

Negative Factors

Significant margin compressionThe sharp decline in gross and net margins points to weaker pricing, product mix or higher input costs. Persistent compression could reduce earnings growth and weaken the benefits of revenue expansion.

Cheviot Co. Ltd. (CHEVIOT) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 6.31B
Dividend Yield: 2.35%
Average Volume (3M): 326
Price to Earnings (P/E): 9.2
Beta (1Y): 0.90
Revenue Growth: 28.81%
EPS Growth: 13.91%
Country: India
Employees: 3,838
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Cheviot Co. Ltd. Business Overview & Revenue Model

Company Description

Cheviot Company Limited specializes in the production and distribution of a diverse range of jute-based products. These offerings include jute shopping bags, yarns, Hessian cloth and bags, sacking bags, and decorative fabrics. While its primary opera...

How the Company Makes Money

Cheviot Co. Ltd. makes money primarily by selling alcoholic beverage products (notably spirits) under its brand portfolio. Revenue is generated from (1) wholesale and distributor sales to trade customers (e.g., distributors, wholesalers, retailers, a...

Cheviot Co. Ltd. Financial Statement Overview

Summary

Strong financial stability is driven by an extremely low-leverage balance sheet (debt-to-equity ~0.012 in 2026) and steadily rising equity. However, operating performance is mixed: revenue turned positive in 2026 (+7.4%) but gross and net margins declined meaningfully versus prior years, and free cash flow fell (-20.4%) with somewhat volatile conversion.

Income Statement

72Positive

Balance Sheet

92Very Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.98B	5.47B	4.39B	4.63B	5.60B	5.62B
Gross Profit	1.63B	1.41B	1.31B	2.06B	2.35B	2.34B
EBITDA	528.09M	779.41M	821.07M	918.75M	761.87M	1.07B
Net Income	682.72M	516.91M	577.42M	693.94M	544.61M	793.49M
Balance Sheet
Total Assets	0	7.70B	7.13B	6.81B	6.22B	6.06B
Cash, Cash Equivalents and Short-Term Investments	303.14M	320.92M	439.45M	514.97M	762.27M	777.44M
Total Debt	0	85.86M	66.83M	89.28M	68.01M	85.33M
Total Liabilities	-7.06B	645.38M	623.28M	547.31M	491.27M	530.79M
Stockholders Equity	7.06B	7.06B	6.51B	6.26B	5.73B	5.53B
Cash Flow
Free Cash Flow	419.43M	333.72M	121.01M	267.71M	308.97M	455.11M
Operating Cash Flow	504.80M	441.90M	293.04M	359.19M	550.18M	559.75M
Investing Cash Flow	-567.96M	-495.94M	249.70M	-238.93M	-222.41M	1.13B
Financing Cash Flow	4.78M	-11.51M	-459.83M	-143.76M	-383.47M	-1.64B

Cheviot Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:CHEVIOT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CHEVIOT	78Outperform	INR 6.24B	9.20	―	2.35%	28.81%	13.91%
IN:RSWM	68Neutral	INR 8.43B	13.31	―	―	-5.08%	―
IN:NAHARSPING	62Neutral	INR 9.40B	12.48	―	0.38%	2.49%	249.40%
IN:RAYMOND	56Neutral	INR 73.26B	126.31	―	―	-5.56%	-99.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:PRECOT	52Neutral	INR 7.23B	14.13	―	0.66%	-1.31%	47.06%
IN:SUTLEJTEX	50Neutral	INR 5.57B	-9.99	―	―	1.71%	36.44%

* General Sector Average

Performance Comparison

IN:CHEVIOT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:CHEVIOT	Cheviot Co. Ltd.	1068.05	-47.85	-4.29%
IN:NAHARSPING	Nahar Spinning Mills Ltd	260.65	54.06	26.17%
IN:PRECOT	Precot Ltd.	602.20	110.47	22.47%
IN:RAYMOND	Raymond Limited	1100.40	525.05	91.26%
IN:RSWM	RSWM Ltd	178.95	25.60	16.69%
IN:SUTLEJTEX	Sutlej Textiles & Industries Ltd.	34.00	-1.30	-3.68%

Cheviot Co. Ltd. Corporate Events

Cheviot Confirms SEBI-Compliant Dematerialisation for Q1 FY2026

Jul 11, 2026

Cheviot Company Limited has notified the stock exchanges and depositories that it has obtained the statutory certificate required under Regulation 74(5) of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 f...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 25, 2026

Cheviot Co. Ltd. AI Stock Analysis