CHELLARAM
Investo's verdict, shared with you
No fair value published
The derivation ran and was refused by our own plausibility checks. We publish no number rather than a plausible-looking one.
Why · 2 checks
Our valuation methods disagree
The earnings-based and book-based readings of this company differ by more than 2.5×. That spread is real information, but averaging it would manufacture a number no method actually produced.
Our own committee reads this differently
Our rules-based factor scorecard scores this company's Value factor the opposite way to our fair value. Both cannot be right, so neither is presented as settled.
What we would need
- Earnings and book value drawn from the same set of accounts, so the two legs can be reconciled.
- Agreement between the filing-derived valuation and the vendor ratios the committee scores.
Show what the engine computed
Method spread · 5.43× between the highest and lowest valuation leg.
Methods disagree · The valuation legs disagree by 5.43x (Blended P/E band ₦2.28 vs Blended P/B band ₦12.38). No point estimate is defensible until the inputs are reconciled.
Committee disagrees · Committee scores Value POSITIVE (mixed) but our base fair value implies -45.3% downside.
Chellaram Plc trades at ₦9.70 against a model base fair value of ₦5.31, implying approximately 45% downside on a market-relative anchor that is itself compromised by a ₦10.10 spread between the P/E leg (₦2.28) and the P/B leg (₦12.38), rendering the point estimate unreliable. The company has returned to marginal profitability in FY2026 (EPS ₦0.39) after two consecutive years of losses, but the earnings base is thin and the current market price embeds a 24.9x P/E that is more than three times the sector median of 7.38x — a premium the operating record does not yet justify. Until earnings normalisation is confirmed across multiple reporting periods and the valuation gap closes, the risk-reward is unfavourable.
Verdict published 2026-09-05 · fundamentals through Q1-FY2027 · reviewed as the data changes
Verdict moderated to Watch — Avoid was refused
Committee scores Value POSITIVE (overall mixed); an "avoid" against our own committee is not publishable without a re-derivation.
Source: NGX live market data · Investo intelligence. Educational only — not financial advice.