ICRA Ltd is Rated Sell by MarketsMOJO

Understanding the Current Rating

MarketsMOJO’s current Sell rating for ICRA Ltd indicates a cautious stance for investors considering this stock. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. While the rating was assigned in November 2025, the following discussion uses the latest available data as of January 2026 to provide a clear picture of the stock’s present-day investment merits and risks.

Quality Assessment

ICRA Ltd’s quality grade is classified as good. This reflects a stable business model and consistent operational performance. Over the past five years, the company has demonstrated moderate growth, with net sales increasing at an annualised rate of 10.96% and operating profit growing at 17.22%. These figures suggest a steady, though not exceptional, expansion in core business activities. The return on equity (ROE) stands at a respectable 17.3%, indicating efficient utilisation of shareholder capital. However, the growth trajectory is somewhat subdued compared to high-growth peers in the capital markets sector.

Valuation Considerations

Valuation is a critical factor influencing the current rating. ICRA Ltd is deemed very expensive based on its price-to-book (P/B) ratio of 5.2. This elevated valuation implies that the market is pricing in significant future growth or premium quality, which may not be fully supported by the company’s recent financial performance. Despite the high P/B ratio, the stock’s valuation remains broadly in line with historical averages for its peer group, suggesting that the premium is not entirely unjustified. The price-to-earnings-to-growth (PEG) ratio of 1.3 further indicates that the stock is priced with moderate growth expectations in mind. Investors should be mindful that paying a premium valuation increases the risk if growth expectations are not met.

Financial Trend Analysis

The financial grade for ICRA Ltd is positive, reflecting encouraging profit growth despite some challenges. As of 27 January 2026, the company’s profits have risen by 24.3% over the past year, a strong indicator of operational efficiency and earnings momentum. However, this profit growth has not translated into commensurate stock price appreciation. The stock has delivered a negative return of -2.02% over the last 12 months and has underperformed the BSE500 index over one, three, and three-month periods. This divergence between earnings growth and share price performance may reflect broader market sentiment or concerns about sustainability of growth.

Technical Outlook

From a technical perspective, ICRA Ltd holds a bearish grade. Recent price movements show a downward trend, with the stock declining by 3.02% over the past month and 10.72% over six months. The one-day gain of 0.81% on 27 January 2026 offers a minor reprieve but does not alter the prevailing negative momentum. Technical indicators suggest caution for short-term traders, as the stock has struggled to maintain upward momentum and faces resistance at current levels.

Performance Summary

Overall, the stock’s performance metrics as of 27 January 2026 paint a mixed picture. While the company’s fundamentals show solid profit growth and a good quality business, the expensive valuation and bearish technical signals weigh heavily on the investment case. The stock’s underperformance relative to broader market indices over multiple time frames further supports a conservative stance. Investors should consider these factors carefully when evaluating ICRA Ltd for their portfolios.

What the Sell Rating Means for Investors

A Sell rating from MarketsMOJO suggests that investors should consider reducing their exposure to ICRA Ltd or avoid initiating new positions at current levels. This recommendation is not a reflection of poor company quality but rather a cautionary signal based on valuation and technical factors that may limit upside potential in the near term. The rating advises investors to be prudent, especially given the stock’s expensive price relative to book value and the bearish price trend.

Sector and Market Context

ICRA Ltd operates within the capital markets sector, a space often sensitive to macroeconomic conditions and regulatory changes. The company’s small-cap status means it can be more volatile and less liquid than larger peers, adding to investment risk. The stock’s recent underperformance relative to the BSE500 index highlights challenges in maintaining investor confidence amid broader market fluctuations. Investors should weigh sector dynamics alongside company-specific factors when making decisions.

Investor Takeaway

In summary, ICRA Ltd’s current Sell rating reflects a balanced assessment of its good quality business fundamentals, positive financial trends, but very expensive valuation and bearish technical outlook. The stock’s recent returns have been negative, and it has lagged behind key market benchmarks. For investors, this rating signals caution and suggests that the risk-reward profile may not be favourable at present. Monitoring future earnings updates, valuation shifts, and technical signals will be essential to reassess the stock’s potential.

Key Metrics at a Glance (As of 27 January 2026)

• Mojo Score: 43.0 (Sell Grade)


• Net Sales Growth (5-year CAGR): 10.96%


• Operating Profit Growth (5-year CAGR): 17.22%


• Return on Equity (ROE): 17.3%


• Price to Book Value: 5.2 (Very Expensive)


• PEG Ratio: 1.3


• Stock Returns: 1 Year -2.02%, 6 Months -10.72%, 3 Months -5.42%


• Technical Grade: Bearish

Investors should continue to monitor these metrics alongside broader market conditions to make informed decisions regarding ICRA Ltd.

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