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

Uniparts India

Sandhar Tech

JTEKT India

MM Forgings

Divgi Torq

Rolex Rings

Carraro India

Wheels India

Automotive Axles

Rane (Madras)

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%

Flat results in Jun 26

PBDIT(Q) Lowest at Rs 43.95 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 8.07%
PBT LESS OI(Q) Lowest at Rs 28.06 cr.

With ROCE of 27.5, it has a Attractive valuation with a 4.6 Enterprise value to Capital Employed

Over the past year, while the stock has generated a return of 16.63%, its profits have risen by 56% ; the PEG ratio of the company is 0.4

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.53% over the previous quarter and collectively hold 19.01% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Market Beating Performance

The stock has generated a return of 16.63% in the last 1 year, much higher than market (BSE500) returns of 5.40%

Real-Time Research Report

Verdict Report

How much should you hold?

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

16.63%

0.38

44.24%

Sensex

-1.65%

-0.12

13.58%

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)

7.24

Debt to EBITDA (avg)

1.25

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

2.79

Tax Ratio

24.67%

Dividend Payout Ratio

30.01%

Pledged Shares

Institutional Holding

19.01%

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

5.04

EV to EBIT

17.22

EV to EBITDA

13.54

EV to Capital Employed

4.63

EV to Sales

1.26

PEG Ratio

0.36

Dividend Yield

0.90%

ROCE (Latest)

27.54%

ROE (Latest)

24.40%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly 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

10What is working for the Company

NET SALES(Latest six months)

At Rs 1,151.40 cr has Grown at 22.86%

PAT(Latest six months)

At Rs 73.06 cr has Grown at 38.29%

-8What is not working for the Company

PBDIT(Q)

Lowest at Rs 43.95 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 8.07%

PBT LESS OI(Q)

Lowest at Rs 28.06 cr.

PAT(Q)

At Rs 31.38 cr has Fallen at -8.9% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 33.24 % of Profit Before Tax (PBT

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Here's what is working for Carraro India

Net Sales - Latest six months

At Rs 1,151.40 cr has Grown at 22.86%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Carraro India

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 28.06 cr has Fallen at -27.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 38.44 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 43.95 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 8.07%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 28.06 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 31.38 cr has Fallen at -8.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 34.44 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 33.24 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 13.97 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income