ICRA Limited

Financial Services — Financial Data & Stock Exchanges · NSE

₹4,491.00−₹14.60 (−0.32%)

DalalBaazaar Score

76 / 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, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

ICRA Limited operates as an independent and professional investment information, and credit rating agency in India and internationally.

IndustryFinancial Data & Stock Exchanges

SectorFinancial Services

Employees1,111

Annual revenue₹598 Cr

How does it make money?

Turns over ₹598 Cr a year. Of every ₹100 of sales, about ₹30 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 1,111 employees supports ₹53.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin38.8%

Net margin30.3%

Revenue / employee₹53.8 lakh

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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

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.

ROCE20.5%

ROE15.4%

Peer median ROE16.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 12.1% and earnings to grow about 13.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.1%

Est. earnings growth+13.8%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +49% while net margin moved -10% 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+49%

Margin effect-10%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.32 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

79/ 100

Good

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

Valuation

52/ 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

22.2x

3Y Median

38.2x

40 monthly readings · mean 36.3x · range 22.5x–46.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 42% below its 3y median of 38.2x. 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 30% above the peer median of 17.0x.

vs. its own history

Cheap

38.2x median over 40 months · -42%

vs. sector peers

Expensive

17.0x median of 4 peers · +30%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

22.2x

P/B

3.66x

EV/EBITDA

18.6x

PEG

2.15

Dividend Yield

1.56%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 22.2x the stock trades 42% below its own median of 38.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 42.5% to 38.8% over 3 years.
Receivables growing faster than sales
Receivables are up 111% against revenue growth of 49% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 3.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 42% 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.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 42.5% to 38.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 30% above the peer median. That premium needs a reason that persists, or it closes.
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 11% a year✓ 14.3% CAGR
Latest reported year was 31.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 37%✓ 38.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 13%✓ 15.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 38.2x✓ 22.2x 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 · 4 neutral · 1 weak

Market Cap

₹4,324 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.66x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹202.54

Profitable

Profitable on a per-share basis

ROE

15.4%

Strong

Strong capital efficiency

ROCE

20.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.55x

High

High leverage

Revenue Growth (YoY)

31.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.56%

Modest

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

Free Cash Flow

₹145 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹4,491

P/E (Forward)

17.2x

Improving

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

Operating Margin

27.3%

Good

Healthy core-business profitability

Net Margin

30.6%

Good

Strong bottom-line conversion

Current Ratio

3.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4425.5 / 4729.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

58.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹401 Cr	₹444 Cr	₹497 Cr	₹598 Cr	+14.3%
EBITDA	₹170 Cr	₹170 Cr	₹196 Cr	₹232 Cr	+10.9%
EBITDA Margin	42.5%	38.2%	39.4%	38.8%	—
PAT (Net Profit)	₹135 Cr	₹151 Cr	₹170 Cr	₹182 Cr	+10.3%
EPS	₹140.59	₹156.99	₹176.5	₹188.32	+10.2%
ROE	14.2%	15.5%	16.1%	15.4%	—
ROCE	18.8%	20.3%	21.4%	20.5%	—
Total Debt	₹13 Cr	₹13 Cr	₹13 Cr	₹18 Cr	+12.2%
Free Cash Flow	₹90 Cr	₹100 Cr	₹132 Cr	₹145 Cr	+17.1%

🟢 Revenue has grown at 14.3% a year over 3 years.

🟢 EBITDA has grown at 10.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 42.5% to 38.8% over 3 years (-3.7 pts).

🟢 PAT (Net Profit) has grown at 10.3% a year over 3 years.

🟢 EPS has grown at 10.2% a year over 3 years.

🟢 ROE has risen from 14.2% to 15.4% over 3 years (+1.1 pts).

🟢 ROCE has risen from 18.8% to 20.5% over 3 years (+1.7 pts).

🔴 Total Debt has grown at 12.2% a year over 3 years.

🟢 Free Cash Flow has grown at 17.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,486 Cr

Total Liabilities

₹301 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹30 Cr

Operating Cash Flow

₹157 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

18.9%

Insider Holding

59.6%

Corporate Actions

Dividend Rate

₹70

Ex-Dividend Date

23 Jul 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹6,362.5

+41.7% vs CMP

Target Range

₹6,325 – ₹6,400

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

ICRA (ICRA) Share/Stock Price Live, NSE

TechGraph, 09 Oct

ICRA Share Price: Fresh 52-Week Low, Price Action

Univest, 30 Sept

CARE Ratings vs ICRA: Similar business, different bets

Value Research, 19 Aug

Should You Buy ICRA Limited (NSE:ICRA) For Its Upcoming Dividend?

Simply Wall Street, 19 JulCapital return

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

Securitisation volume hits record ₹1.47 trillion in H1 FY27: ICRA

Business Standard, 12 Oct

Vedanta share price hits record high after ICRA credit rating upgrade

Livemint, 29 MayAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Watch Items

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

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13.4/20

🟢ProfitabilityStrong12.8/15

🟢ValuationAttractive10.7/15

🟡RiskModerate6.2/10

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.

This thesis breaks if

✓Revenue growth stays above 11% a year14.3% CAGR
✓EBITDA margin holds above 37%38.8%
✓Return on equity stays above 13%15.4%
✓Valuation vs its own median of 38.2x22.2x today