1. At a Glance – The Boring Jute Stock That Just Posted a 400% Profit Jump
Meet Cheviot Company Ltd — a 1976-born, government food-grain-packaging supplier that makes 50+ million jute bags a year and quietly printed a 400% YoY jump in quarterly profit.
Market Cap: ₹636 Cr
Current Price: ₹1,088
Stock P/E: 9.07
Price to Book: 0.90
ROCE: 10%
ROE: 7.75%
Debt to Equity: 0.01 (basically allergic to debt)
Return (3 months): -3.45%
Latest Q3 FY26 numbers?
Revenue: ₹139 Cr
PAT: ₹17.2 Cr
Quarterly Sales Growth: 28.5%
Quarterly Profit Growth: 400%
And yet… the stock trades below book value.
The company just completed a buyback at ₹1,800 per share in 2024. Today the market says ₹1,088. That’s a 40% discount to its own buyback price.
Either Mr. Market is confused… or he knows something we don’t.
Let’s open the jute sack and see what’s inside.
2. Introduction – From Gunny Bags to Global Exports
Cheviot isn’t some random microcap running out of a shed.
It is part of the Kanoria family group. ISO certified. Three Star Export House. OEKO TEX certified. Makes hessian, yarn, technical textiles, and geotextiles. Also owns a tea estate called Binnakandy in Assam.
Yes. Jute and Tea. Very colonial-core portfolio.
The company produces over 50 million jute bags annually, mainly used for food grain packaging by the Government of India.
Translation:
If India distributes rice or wheat, Cheviot probably supplied the bag.
Exports contribute around 35–40% of revenue. Domestic is ~65%. That gives it some global cushion when Indian demand fluctuates.
But here’s the twist.
Over the last 5 years:
- Sales growth: -1%
- Profit growth: 0%
- 3-year profit growth: -14%
So historically? Meh.
But suddenly, in Q3 FY26, profits explode 400% YoY.
Is this a one-quarter sugar rush? Or operational revival?
Let’s find out.
3. Business Model – WTF Do They Even Do?
Imagine you’re explaining this to a lazy but intelligent investor.
Cheviot basically:
- Buys raw jute.
- Spins it into yarn.
- Converts yarn into fabrics, sacks, and technical textiles.
- Sells these to:
- Government of India (food grain packaging)
- Export markets like USA, Germany, Netherlands
- Industrial buyers (geotextiles etc.)
It has:
- Budge-Budge unit: 160 metric tons per day capacity
- Falta SEZ unit: 100+ automatic
