Carraro India Ltd (CARRARO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wheels India

Carraro India

Uniparts India

Divgi Torq

NRB Bearings

Rane (Madras)

Automotive Axles

JTEKT India

Steel Str. Wheel

Rolex Rings

Sundaram Clayton

Why is Carraro India Ltd ?

High Management Efficiency with a high ROCE of 24.57%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.02 times

Healthy long term growth as Operating profit has grown by an annual rate 50.60%

With a growth in Net Profit of 48.52%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
PAT(Latest six months) At Rs 76.96 cr has Grown at 100.48%
NET SALES(Latest six months) At Rs 1,176.31 cr has Grown at 31.74%
PBDIT(Q) Highest at Rs 63.44 cr.

With ROCE of 27.5, it has a Attractive valuation with a 4.9 Enterprise value to Capital Employed

Over the past year, while the stock has generated a return of 16.92%, its profits have risen by 56% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Carraro India should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Carraro India for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Carraro India

18.81%

0.37

45.37%

Sensex

-8.21%

-0.61

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.10%

EBIT Growth (5y)

50.60%

EBIT to Interest (avg)

7.22

Debt to EBITDA (avg)

1.25

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

2.79

Tax Ratio

24.42%

Dividend Payout Ratio

30.01%

Pledged Shares

Institutional Holding

20.54%

ROCE (avg)

19.68%

ROE (avg)

21.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.35

EV to EBIT

17.79

EV to EBITDA

14.08

EV to Capital Employed

4.90

EV to Sales

1.37

PEG Ratio

0.39

Dividend Yield

0.85%

ROCE (Latest)

27.54%

ROE (Latest)

24.40%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

25What is working for the Company

PAT(Latest six months)

At Rs 76.96 cr has Grown at 100.48%

NET SALES(Latest six months)

At Rs 1,176.31 cr has Grown at 31.74%

PBDIT(Q)

Highest at Rs 63.44 cr.

PBT LESS OI(Q)

Highest at Rs 47.38 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 10.46%

EPS(Q)

Highest at Rs 7.33

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Carraro India

Operating Profit (PBDIT) - Quarterly

Highest at Rs 63.44 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 47.38 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 47.38 cr has Grown at 40.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 33.71 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 41.68 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 606.72 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 10.46%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

At Rs 41.68 cr has Grown at 39.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 29.95 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 7.33

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Carraro India

Non Operating Income - Quarterly

Highest at Rs 7.52 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income