Cheviot Company Limited

Market Cap: Rs. 154.82 CroresCurrent Price: Rs. 344.05Book Value: Rs. 543.04

Stock P/E: 4.37Dividend Yield: 3.78%Stock is Rs. 10.00 paid up

The stock looks interesting. Any one tracking it.

i did that, they generate good amount of cash but problem is that they are hoarding it with themselves, not doing dividend. buyback etc. Also, jute sacks are kind of stagnant business, plastics bags are preferred be people these days

Current market cap 220 Cr (stock price : 483)
This company Delivered bumber result… With quaterly eps of 34
cash equivalent of more than 200 crores.
Promoter holding is 75%
Current ROCE of 24%
People moving away from plastic should be good for this industry
… Anyone tracking this company?

@ashish620 agreed jute bags is dyeing industry and plastic bags is the trending industry but if you look at last 15 years this stock has been a 40 bagger which is very much at par with well known plastic players like wim plast or nilkamal(not necessarily bags)

Disc: Invested small amount for tracking

at the current levels, cheviot is fairly valued. company has a couple of hundred cr of treasury investments in mf’s. Why not return cash back to shareholders rather than act like a FI PM?

You would want to have a look in this

@hssodhi198 @Lynchfan

Decent business, good management…wasted a ton of cash on buying back shares at Rs 1500 though.

Disclosure: Invested.

I would still say this is worth it.Atleast as a decent compounder.

That was in place of dividends and it was done before the Bonus Issue.


The stock seems to quite cheap according to valuation parameters.The company is also having good cash reserves.But they are not distributing it in terms of dividends.They are also not investing the same.Does anyone in this forum tracking this company now.Any advice will be helpful.


Its commodity business.

Thank you for your reply.But as per my knowledge they deal with Jute bags and other jute kindly please explain how it is a commodity business.


Anything that’s sold in terms on weight i.e. Kgs is commodity, I remember reading it somewhere. But in case on Cheviot, Jute based packaging and bags are going replace plastic or non/decomposable packaging. Also, gov mandated using Jute in packaging certain type of grains. That way it has tail-wind. Company is debt free, and if you look at the section in the AR, Investments stand at 19,225.87 Lakhs Vs 21,445.70 Lakhs (2018). Also, the tone of the management on raw-material is positive.

Descl: Invested, adding more in SIP way during the fall.

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Correct. Almost nil pricing power.
Major competition from Bangladesh companies.

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Overall results look ok.sales have increased but profit margin have decreased compared to yoy.qoq good result,EBIDTA levels have increased almost 25%.EPS for this quarter is 18.55.


Very good result.

Positive for Cheviot Company Limited

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has accorded its approval for mandatory packaging of foodgrains and sugar in jute material for the Jute Year 2019-20.

The Government has retained the scope of mandatory packaging norms under the Jute Packaging Material (JPM) Act, 1987 as per last year. The decision of the Cabinet mandates that 100% of the food grains and 20% of the sugar shall be mandatorily packed in diversified jute bags.


The decision to pack sugar in diversified jute bags will give an impetus to the diversification of the jute industry. Further, the decision also mandates that initially 10% of the indents of jute bags for packing foodgrains would be placed through reverse auction on the GeM portal. This will gradually usher in a regime of price discovery.

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Any idea why capital work in progress has increased significantly. Checked their 2019 AR and Q4 FY20 results but couldn’t find much…


Buy back announced
Pursuant to Regulation 29 of the Securities and Exchange Board of lndia (Listing Obligations
and Disclosure Requirements) Regulations,2Ol5, notice is hereby given that the Board of
directors of the Company shall meet through audio-visual means on Tuesday, gth September,
2020 at 11:30 A.M. to inter-alia consider the proposal for buy-back of ordinary shares of the
Company and matters incidental thereto.
Further, please be informed that pursuant to SEBI (Prohibition of lnsider Trading) Regulations,
20L5, the Trading Window for dealing in securities of the Company by the designated persons
defined under the Company’s “Code of Conduct to Regulate, Monitor and Report Trading in
Securities of Cheviot Company Limited by lnsiders” shall remain closed from the date of this
notice till 48 hours after the outcome of the aforesaid Board meeting is disseminated on the
stock exchange.
This notice will be available on the website of 83c691e5-56b8-4957-86ff-4e5339e4a295.pdf (478.6 KB)

What would be the buy back price?