Carraro India Limited

Consumer Cyclical — Auto Parts · NSE

₹504.00−₹3.95 (−0.78%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Carraro India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Carraro India Limited manufactures and sells automotive equipment, parts, and components in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees908

Annual revenue₹2,246 Cr

How does it make money?

Turns over ₹2,246 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 908 employees supports ₹2.47 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.47 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.1% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +32% while net margin moved +104% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+32%

Margin effect+104%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

75/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

21.6x

2Y Median

34.0x

24 monthly readings · mean 34.0x · range 22.0x–58.0x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 37% below its 2y median of 34.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 53% below the peer median of 45.7x.

vs. its own history

Cheap

34.0x median over 24 months · -37%

vs. sector peers

Cheap

45.7x median of 4 peers · -53%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.9x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 7.2% to 10.9% over 3 years.
Debt is being paid down
Total debt is down 19% over 3 years.
Cash generation is improving
Free cash flow is up 503% over 3 years.
Return on equity is rising
ROE has improved from 14.4% to 23.1%.
Return on capital is rising
ROCE has improved from 16.4% to 25.8%.
High return on capital employed
ROCE of 25.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.2% to 10.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 19% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 37% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 53% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 9%✓ 10.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.7% CAGR
Latest reported year was 10.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹102 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 25.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹2,865 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.6x

Fair

Fairly valued against the generic band

P/B Ratio

5.08x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹23.37

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

25.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

10.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.8%

Modest

Slow profit growth

Dividend Yield

1.34%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹102 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.0%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

523.0 / 526.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,704 Cr	₹1,780 Cr	₹1,800 Cr	₹2,246 Cr	+9.7%
EBITDA	₹123 Cr	₹149 Cr	₹185 Cr	₹246 Cr	+25.9%
EBITDA Margin	7.2%	8.4%	10.3%	10.9%	—
PAT (Net Profit)	₹48 Cr	₹63 Cr	₹88 Cr	₹131 Cr	+39.2%
EPS	₹8.52	₹11	₹15.5	₹22.96	+39.2%
ROE	14.4%	16.9%	19.2%	23.1%	—
ROCE	16.4%	19.7%	21.5%	25.8%	—
Total Debt	₹192 Cr	₹216 Cr	₹191 Cr	₹155 Cr	-6.9%
Free Cash Flow	₹17 Cr	₹26 Cr	₹24 Cr	₹102 Cr	+82.0%

🟢 Revenue has grown at 9.7% a year over 3 years.

🟢 EBITDA has grown at 25.9% a year over 3 years.

🟢 EBITDA Margin has risen from 7.2% to 10.9% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 39.2% a year over 3 years.

🟢 EPS has grown at 39.2% a year over 3 years.

🟢 ROE has risen from 14.4% to 23.1% over 3 years (+8.8 pts).

🟢 ROCE has risen from 16.4% to 25.8% over 3 years (+9.3 pts).

🟢 Total Debt has shrunk at 6.9% a year over 3 years.

🟢 Free Cash Flow has grown at 82.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,269 Cr

Total Liabilities

₹704 Cr

Cash & Equivalents

₹90 Cr

Operating Cash Flow

₹135 Cr

Capex

-₹32 Cr

Shareholding (proxy)

Institutional Holding

16.0%

Insider Holding

68.8%

Corporate Actions

Dividend Rate

₹6.75

Ex-Dividend Date

03 Sept 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

3 positive2 mixed1 general

Be Sure To Check Out Carraro India Limited (NSE:CARRARO) Before It Goes Ex-Dividend

Simply Wall Street, 30 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Carraro India Ltd | Stock Share Price Live

MarketSmith India, 05 Feb

Carraro India Share Price Target 2026: Rs 635 Analyst Forecast

Univest, 17 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Carraro India AGM approves ₹6.75 dividend, reappoints directors

scanx.trade, 13 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Carraro India share price drops over 8%, reversing early market gains post Q4 results

Upstox, 27 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Carraro India Q1 Profit Rises 8% to ₹31.4 Cr; Revenue Up 12%

HDFC Sky, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑