Canara Robeco Asset Management Company Limited

Financial Services — Asset Management · NSE

₹226.40+₹2.95 (+1.32%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. 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, 8:29 pm

Understanding the Business

Company site ↗

The 60-second version of Canara Robeco Asset Management Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Canara Robeco operates as a subsidiary of Canara Bank

IndustryAsset Management

SectorFinancial Services

Employees329

Annual revenue₹425 Cr

How does it make money?

Turns over ₹425 Cr a year. Of every ₹100 of sales, about ₹48 reaches shareholders as profit, with ₹60 left at the operating level before interest, tax and depreciation. Each of its 329 employees supports ₹1.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.29 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 10.3% and earnings to grow about 13.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.3%

Est. earnings growth+13.1%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 1 years revenue moved +17% while net margin moved -8% 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+17%

Margin effect-8%

DalalBaazaar Score

66/ 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

73/ 100

Good

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

Valuation

54/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

19.7x

1.2Y Median

26.2x

14 monthly readings · mean 26.4x · range 22.0x–33.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 1.2y median of 26.2x. 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 16% above the peer median of 17.0x.

vs. its own history

Cheap

26.2x median over 14 months · -25%

vs. sector peers

Fair

17.0x median of 4 peers · +16%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.7x

PEG

2.87

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 61.8% to 60.1% over 1 years.
Return on equity is falling
ROE has dropped from 31.8% to 27.3% — each rupee of shareholder capital earns less than it did.

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?

Priced below its own history
The stock trades 25% 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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 61.8% to 60.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 31.8% to 27.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 12% a year✓ 16.6% CAGR
Latest reported year was 18.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 58%✓ 60.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 28%✓ 30.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 26.2x✓ 19.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹4,515 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.7x

Fair

Fairly valued against the generic band

P/B Ratio

5.40x

Rich

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

EPS (TTM)

₹11.48

Profitable

Profitable on a per-share basis

ROE

30.2%

Strong

Strong capital efficiency

ROCE

36.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.04x

High

High leverage

Revenue Growth (YoY)

18.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

21.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.99%

Modest

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

Free Cash Flow

₹194 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

23.3%

Good

Assets are working hard

Operating Margin

62.9%

Good

Healthy core-business profitability

Net Margin

45.8%

Good

Strong bottom-line conversion

Current Ratio

7.66

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

225.3 / 241.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.2

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹365 Cr	₹425 Cr	+16.6%
EBITDA	₹225 Cr	₹255 Cr	+13.3%
EBITDA Margin	61.8%	60.1%	—
PAT (Net Profit)	₹191 Cr	₹204 Cr	+6.9%
EPS	₹9.56	₹10.22	+6.9%
ROE	31.8%	27.3%	—
ROCE	35.5%	36.1%	—
Total Debt	₹16 Cr	₹18 Cr	+12.1%
Free Cash Flow	₹155 Cr	₹166 Cr	+7.5%

🟢 Revenue has grown at 16.6% a year over 1 years.

🟢 EBITDA has grown at 13.3% a year over 1 years.

🔴 EBITDA Margin has fallen from 61.8% to 60.1% over 1 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 6.9% a year over 1 years.

🟢 EPS has grown at 6.9% a year over 1 years.

🔴 ROE has fallen from 31.8% to 27.3% over 1 years (-4.5 pts).

🟡 ROCE has held roughly flat at 36.1% over 1 years.

🔴 Total Debt has grown at 12.1% a year over 1 years.

🟢 Free Cash Flow has grown at 7.5% a year over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹819 Cr

Total Liabilities

₹73 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹172 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

8.7%

Insider Holding

75.0%

Corporate Actions

Dividend Rate

₹4.5

Ex-Dividend Date

16 Oct 2026

Analyst Consensus

Recommendations

3 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹294.5

+30.1% vs CMP

Target Range

₹283 – ₹310

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

2 positive4 general

Canara Robeco Asset Management (NSE:CRAMC) Could Be A Buy For Its Upcoming Dividend

Simply Wall Street, 12 OctCapital return

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

Canara Robeco AMC Confirms 35-40 BPS Yield Guidance Supported By 40 BPS Equity Yields

Sahi, 12 Oct

Canara Robeco AMC Share Price: Buy or Sell

Univest, 11 Sept

CRAMC Stock Price and Chart — NSE:CRAMC

TradingView, 22 Jul

Canara Robeco Asset Management shares rally 13% after Q1FY27 profit jumps 24% YoY

The Economic Times, 22 JulResults

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

Best AMC stocks to invest in: Rating all seven listed houses

Value Research, 01 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 4 tripwires holding · see Key things to watch ↑