Charter. Capital (511696)

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Trading at ₹221.35 against a book value of ₹565.87, a 61% discount to stated equity (P/B 0.39).
• P/E of 10.46 with profit growth of 47.31% gives a PEG of 0.32, implying undervaluation on near-term growth.
• Piotroski F-Score of 7/9 suggests solid recent fundamentals across profitability, leverage, and efficiency.
• Sales growth of 18.80% and latest quarter net profit margin of roughly 67% shows operational traction, though on a tiny base.
• Debt/Equity is N/A, indicating a debt-light balance sheet with limited financial risk.

Concerns

• ROE of 4.39% and ROCE of 4.97% are weak; the company is not generating attractive returns on its large book value.
• Scale is minimal: latest quarter sales are only ₹3 Cr and market cap is ₹67 Cr, leaving little institutional or competitive moat.
• No dividend yield means minority shareholders are entirely dependent on capital appreciation or asset monetisation.
• Current price of ₹221.35 is below the 52-week low of ₹225.05, reflecting negative sentiment or possible data anomaly.

AI Analysis

I prefer good businesses at fair prices, but sometimes an ordinary business at a remarkable discount is worth examining. Charter Capital is a microcap financial services firm with a market cap of just ₹67 Cr, yet its book value is ₹565.87 per share. At ₹221.35, I am paying roughly 39 paise for every rupee of stated equity. That is a Graham-style margin of safety. But let me be honest: a low P/B is not enough. The business earns only 4.39% on equity and 4.97% on capital employed. That tells me capital is not being deployed with great skill. There is no dividend yield, so as a minority shareholder I must rely on either improvement in earnings or eventual asset realization. The recent numbers are encouraging: sales grew 18.8%, profit grew 47.31%; the P/E is 10.46, and the PEG is 0.32. The Piotroski score of 7/9 supports an improving fundamental picture. Yet the latest quarter shows sales of only ₹3 Cr and net profit of ₹2 Cr—tiny absolute numbers. I cannot project long-term quality from such a small base. The balance sheet appears debt-light, but promoter holding is not disclosed, so I cannot assess alignment. This is not a wonderful business; it is a cheap financial asset with a possible catalyst. The current price sits at or below the 52-week range, suggesting the market has given up. I would need proof that book value can grow or be unlocked before deploying serious capital. At this price, a patient investor may be getting something for less than it is worth, but 'cheap' must be backed by management's ability to improve returns.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer