1. At a Glance
Cheviot makes 50 million jute bags a year, but its sales chart looks like a jute mill caught in a cyclone. An old-money, Kanoria-family-run textile legacy that’s still standing strong—but slowly. Welcome to India’s quietest Three-Star Export House.
2. Introduction with Hook
Cheviot Company Ltd is like the Dronacharya of jute—respected, forgotten, but not irrelevant. Incorporated in 1976 and rooted deeper than some mutual fund careers, it churns out lakhs of jute bags for the Indian government while sipping dividend tea on the side.
- FY25 EPS: ₹95.96
- ROCE: ~10%, Debt: almost nil
- Market cap: ₹706 Cr vs Investments worth ₹311 Cr
If India’s jute story were Mahabharata, Cheviot would be Bhishma Pitamah—immortal, but lying low.
3. Business Model (WTF Do They Even Do?)
Cheviot is in the business of jute—plain, premium, patriotic.
- Main Products: Jute yarn, hessian fabric, and foodgrain packaging bags.
- Clients: Primarily Government of India and state agencies (Fertilizer, Food & Civil Supplies).
- Certifications: ISO 9001:2015, ISO 14001, OEKO TEX Standard 100.
- Side Quests: Tea, education, and a modest treasury portfolio.
It’s not sexy. It’s not new. But it’s certified, export-worthy, and Bharat Sarkar-approved.
4. Financials Overview
| FY | Sales (₹ Cr) | EBITDA Margin | Net Profit (₹ Cr) | EPS (₹) | ROE (%) |
|---|---|---|---|---|---|
| FY21 | 396 | 13% | 76 | 120.83 | 14% |
| FY22 | 571 | 15% | 79 | 131.88 | 16% |
| FY23 | 564 | 12% | 54 | 90.51 | 13% |
| FY24 | 463 | 10% | 69 | 115.33 | 13% |
| FY25 | 439 | 12% | 58 | 95.96 | 10% |
Sales dropped but profitability held, thanks to their fortress balance sheet and non-operating income magic.
5. Valuation
- CMP: ₹1,175
- Book Value: ₹1,082
- P/E: 14.3
- P/BV: 1.09
Fair Value Range (Based on 12x–15x core EPS + cash adj.):
➡ ₹1,300 – ₹1,500
Price has fallen 16% YoY—while cash keeps flowing. Classic value investor bait.
6. What’s Cooking – News, Triggers, Drama
- RIL Shares Bought (Jul 2025): Acquired 13,500 RIL shares at ₹1,481 as “long-term investment.”
- AGM Notice: MD reappointment, ₹5/share dividend, auditor updates.
- Volatility Ahead? Raw jute prices remain unpredictable.
- Government Orders: Dependent on foodgrain procurement season.
No drama. Just dividend dispatches and AGM invites.
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 6 |
| Reserves | 645 |
| Borrowings | 7 |
| Investments | 311 |
| Fixed Assets | 224 |
| Total Assets | 713 |
Key Observations
- Investments = 44% of balance sheet
- Debt is negligible
- Net worth ~₹651 Cr
- Liquid, old-school, rock-solid
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | 55 | -22 | -38 | -6 |
| FY24 | 36 | -24 | -14 | -2 |
| FY25 | 26 | 28 | -46 | +8 |
Interpretation:
- Consistent operating cash
- Investing in RIL-type blue chips
- Financing = mostly dividends
- Very clean cash management
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 10% |
| ROE | 8% |
| OPM | 12% |
| Debtor Days | 23 |
| Inventory Days | 196 |
| CCC | 207 |
| D/E | 0.01 |
Commentary:
High inventory days = seasonal procurement cycles.
Returns are okay—not racy—but debt-free, which earns it points.
10. P&L Breakdown – Show Me the Money
| Item | FY25 |
|---|---|
| Sales | ₹439 Cr |
| EBITDA | ₹53 Cr |
| Other Income | ₹29 Cr |
| PBT | ₹75 Cr |
| Net Profit | ₹58 Cr |
| EPS | ₹95.96 |
| Dividend Declared | ₹5/share |
Decent OPM, low interest burden, and a neat ₹29 Cr in treasury returns. Buffett would at least raise an eyebrow.
11. Peer Comparison
| Company | CMP ₹ | P/E | ROCE | ROE | OPM | M-Cap ₹ Cr | P/B |
|---|---|---|---|---|---|---|---|
| Cheviot | 1,175 | 14.3 | 10% | 8% | 12% | 706 | 1.09 |
| Gloster | 689 | — | 1.5% | -1.2% | 6% | 763 | 0.70 |
| Ludlow Jute | 463 | — | -0.6% | -6.3% | 3% | 498 | 2.97 |
| AI Champdany | 54 | — | -107% | — | -61% | 167 | — |
Verdict: Cheviot is the least dirty shirt in the Jute laundry.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 74.88% (unchanged, stable)
- FIIs: 0.33% (tiny, passive)
- DIIs: 0.15%
- Public: 24.61%
- No. of Shareholders: 21,279
The stock has decent liquidity for a ₹700 Cr company, but no institutional push yet. Classic under-the-radar material.
13. EduInvesting Verdict™
Cheviot is not here to break records. It’s here to quietly fill government warehouses with jute bags and its own books with dividend income.
- Positives: Clean books, decent cash flows, no debt, strong export infra
- Negatives: Growth is declining, earnings are flattish, low dividend payout
This isn’t a racehorse. It’s a wise old bullock cart loaded with jute bags, balance sheet strength, and Kanoria conservatism.
If you like dividends, low-beta peace, and old-school assets—Cheviot might just be your meditative midcap.
Metadata
– Written by EduInvesting Analyst | 18 July 2025
– Tags: Cheviot Company, Jute Stocks, Old Economy, Value Investing, Underfollowed Midcap, Kanoria Group, Export House
