Understanding the Current Rating
The 'Sell' rating assigned to ICRA Ltd by MarketsMOJO indicates a cautious stance for investors considering this stock at present. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. While the rating was revised on 18 Nov 2025, it is essential to consider the latest data as of 25 December 2025 to understand the stock’s present investment appeal.
Quality Assessment
ICRA Ltd maintains a good quality grade, reflecting solid operational performance and business fundamentals. The company has demonstrated steady growth in net sales, with an annualised rate of 10.96% over the past five years. Operating profit has grown at an even stronger pace of 17.22% annually during the same period, signalling effective cost management and operational efficiency. Additionally, the company’s return on equity (ROE) stands at a robust 17.3%, indicating efficient utilisation of shareholder capital to generate profits.
Valuation Considerations
Despite the positive quality metrics, ICRA Ltd is currently rated very expensive in terms of valuation. The stock trades at a price-to-book (P/B) ratio of 5.6, which is significantly higher than typical market averages and peers. This elevated valuation suggests that the market has priced in strong growth expectations, which may limit upside potential if those expectations are not met. The PEG ratio of 1.3, while not excessively high, indicates that the stock’s price growth is somewhat aligned with its earnings growth, but the premium valuation remains a concern for value-conscious investors.
Register here to know the latest call on ICRA Ltd
- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for ICRA Ltd remains positive, with the latest data showing a 24.3% increase in profits over the past year. This growth in profitability is a favourable sign, reflecting the company’s ability to expand earnings despite a challenging market environment. However, the stock’s year-to-date (YTD) return is slightly negative at -1.99%, and the one-year return is modestly positive at 1.63%, indicating that market sentiment has been cautious despite improving financials.
Technical Outlook
From a technical perspective, the stock is rated as mildly bearish. Recent price movements show some volatility, with a 1-day gain of 1.47% and a 1-week gain of 4.97%, but the 3-month and 6-month returns are negative at -4.42% and -5.90%, respectively. This mixed technical picture suggests that while there may be short-term buying interest, the overall trend remains subdued, which could weigh on investor confidence in the near term.
Stock Performance Summary
As of 25 December 2025, ICRA Ltd is classified as a small-cap stock within the Capital Markets sector. Its recent performance has been mixed, with short-term gains offset by longer-term declines. The stock’s valuation remains a key concern, given its premium pricing relative to earnings and book value. Investors should weigh the company’s solid quality and positive financial trends against the expensive valuation and cautious technical signals when considering their investment decisions.
Our latest weekly pick is out! This Large Cap from Steel/Sponge Iron/Pig Iron delivered with target price and complete analysis. See what makes this week's selection special!
- - Latest weekly selection
- - Target price delivered
- - Large Cap special pick
See This Week's Special Pick →
What the Sell Rating Means for Investors
The 'Sell' rating from MarketsMOJO suggests that investors should exercise caution with ICRA Ltd at this time. While the company exhibits strong quality and positive financial trends, the very expensive valuation and mildly bearish technical outlook imply limited upside potential and increased risk. Investors seeking capital preservation or value opportunities may find better prospects elsewhere, whereas those with a higher risk tolerance might monitor the stock for potential entry points if valuation pressures ease.
Conclusion
In summary, ICRA Ltd’s current 'Sell' rating reflects a balanced assessment of its strengths and vulnerabilities as of 25 December 2025. The company’s good quality and positive financial momentum are tempered by a stretched valuation and cautious technical signals. Investors should carefully consider these factors in the context of their portfolio objectives and risk appetite before making investment decisions related to this stock.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
