Cheviot Company Limited

Buyback @ 900. Promoters are also participating.

Just got the view of this stock. Any articles related to this? 468 cr mcap, 305 cr investments and debt free. Am I missing anything at precursory glance?

I have participated in buy back 18%is the acceptance ratio

Can somebody interpret the current situation for me around special dividend of INR 175 and its implication on stock prices which has zoomed 40% with 2 upper circuits in two days?

Dear members , Any updates and development about this company. I could see they achieved highest ever turnover with improved margins. They hold cash invested in Mutual fund, hence their other income could see a dip. I have very small position - 100 shares.

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My understanding about the Jute Industry is limited to the fact that it’s highly Government-regulated, both on the Pricing Side (More MSP means higher input costs for companies like Cheviot) and on the Revenue side (GOI mandate forces many firms, especially food grain producers, to use Jute-based packaging material).

Reference Material (Report from Ministry of Textiles, GOI): https://texmin.nic.in/sites/default/files/Textiles_Sector_Jute.pdf

What I don’t understand is:

  • Why does the GOI support the Jute industry so much? (MSP for farmers, packaging materal stipulations which support copanies like Cheviot)
  • Why, even after GOI’s support, Jute volumes (Both import and export) don’t show a secular growth trend? (For the 5-year period shown in the report, it’s flattish)
  • If all governmental support were to be removed, will Jute-based packaging industry continute to operate profitably? (The report and generally other materials online call Jute the ‘crop of the future’ what with its many environment-friendly qualities; but the need for so much of governmental support to prop up the industry challenges the claim)

Answering these questions could be the key to unlocking the Competitive Advantage, if any, of Cheviot Company.

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