Carraro India Adjusts Valuation Grade Amid Strong Stock Performance and Competitive Positioning

Carraro India, a small-cap player in the auto components and equipment sector, has recently undergone a valuation adjustment. The company's current price stands at 509.15, reflecting a notable increase from the previous close of 462.90. Over the past week, Carraro India has shown a stock return of 10.44%, significantly outperforming the Sensex, which returned just 0.13% in the same period.
Key financial metrics for Carraro India include a PE ratio of 33.58 and an EV to EBITDA ratio of 18.11. The company also boasts a return on capital employed (ROCE) of 20.93% and a return on equity (ROE) of 18.28%. However, its PEG ratio remains at 0.00, indicating no growth in earnings relative to its price.

In comparison to its peers, Carraro India presents a relatively lower valuation profile. For instance, Endurance Tech and Motherson Wiring have higher PE ratios of 46.04 and 48.76, respectively, while TVS Holdings stands out with a significantly lower EV to EBITDA ratio of 7.30. This context highlights Carraro India's positioning within the competitive landscape of the auto components industry.