Carraro India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Carraro India Ltd trades at ₹536, in a confirmed uptrend and 13 weeks into that stage. That is +1.9% against its own 200-day average. It sits at 62% of a 52-week range of ₹442 to ₹595. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (6 weeks and counting).

Today the stock is in a confirmed uptrend — week 13 of stage 2, confirmed. At ₹536 it trades +1.9% versus its 200-day average and sits at 62% of its 52-week range (₹442–₹595).

Against the market, two honest reads. Cumulative: over the last 1.6 years the stock moved −19% while the NIFTY 500 moved +6% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (6 weeks and counting; last ahead the week of 2026-06-25) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Carraro India Ltd trades at 22.2× P/E, near the bottom of its own range — cheaper only 4% of the time. Its long-run median P/E is 29.7×, measured across 1.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 22.2× is near the bottom of its own range — cheaper only 4% of the time, against a long-run median of 29.7× measured over 1.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +48.2% against a +11.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Carraro India Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 7 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

65.7/100 — rank 4 of 20 in Auto Ancillaries - Diversified · 89% evidence confidence

Carraro India Ltd scores 65.7 out of 100 against the 20 companies it is compared with in Auto Ancillaries - Diversified, ranking 4. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -9.1% and the one-year return is 10.5%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 25.4 + 19.9 + 15.7 + 4.7 = 65.7. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Carraro India Ltd reported ₹607 Cr of revenue in the Mar 26 quarter, +36.7% year on year. That is the 6th straight quarter of year-on-year growth. Over 4 years it has compounded at 10.8% a year. The last full year, FY26, came in at ₹2,255 Cr. The last four reported quarters add to ₹2,256 Cr.

FY26 revenue came in at ₹2,255 Cr (+24.7% on the year), capping 4 years at 10.8% compound. The latest quarter (Mar 26) printed ₹607 Cr, +36.7% year on year — the 6th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +25.1% growth against the decade's 10.8% — the current year is running faster than its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Carraro India Ltd's operating margin is 10.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 5 fiscal years the operating margin has ranged 4.0% to 10.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 10.0%, +0.0 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 4.0%–10.0%, and FY26's 10.0% is the top of that band — a record year.

Why the margin moved: operating margin went +0.3 pp year on year while gross margin went −3.7 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Carraro India Ltd earned ₹42.0 Cr of net profit in the Mar 26 quarter, +75.0% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹131 Cr. The 4-year compound rate is 56.2%. That is 6.9% of the quarter's revenue. The same quarter a year earlier earned ₹24.0 Cr.

Mar 26 profit was ₹42.0 Cr, +75.0% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹131 Cr (+48.9%), and the 4-year compound rate is 56.2%.

Why profit moved: revenue contributed +36.7% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +52.7% vs revenue +25.1%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 115% of Carraro India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹135 Cr of operating cash against ₹131 Cr of profit. After ₹42.0 Cr of capital spending, ₹93.0 Cr was left as free cash.

FY26: operating cash of ₹135 Cr against reported profit of ₹131 Cr, leaving free cash of ₹93.0 Cr after ₹42.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 115% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 115%: the cash cycle stretched 38 days between FY22 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Carraro India Ltd's cash conversion cycle runs 38 days in FY26, up from 0 days in FY22. Capital spending ran ₹194 Cr over the last 3 years. At FY26 sales of ₹2,255 Cr each day of that cycle holds about ₹6.2 Cr, so roughly ₹235 Cr sits inside the business at any moment.

FY26: debtors at 61 days, inventory at 70 days — roughly 2.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 38 days, looser than FY22's 0.

The full loop: cash goes out to suppliers and production on day 0; stock waits 70 days to sell; customers pay about 61 days after that; and suppliers themselves are paid at 93 days — netting out to the 38-day cycle.

In money terms: at FY26 sales of ₹2,255 Cr, each day of the cycle holds about ₹6.2 Cr — so the 38-day loop keeps roughly ₹235 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹194 Cr over the last 3 fiscal years against ₹134 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Carraro India Ltd earns a ROCE of 29% in FY26. That is up from a trough of 17% in FY23. Return on invested capital clears the cost of that capital by +9.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 5.8% net margin on 1.78× asset turns.

FY26 ROCE is 29%, recovered from a FY23 trough of 17% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 5.8% net margin × 1.78× asset turns × 2.25× balance-sheet leverage ≈ 23.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 21.6% − 12.0% = a +9.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Carraro India Ltd carries total debt of ₹155 Cr against shareholder equity of ₹565 Cr as of Mar 26, a debt-to-equity of 0.27 — effectively unlevered. On the annual view that ratio went from 0.58 in FY24 to 0.27 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹155 Cr against shareholder equity of ₹565 Cr — a debt-to-equity of 0.27. On the annual view, debt-to-equity went from 0.58 (FY24) to 0.27 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 1.4 points of Carraro India Ltd over 6 quarters, the biggest move on the register. That takes domestic institutions to 16.1% of the company. Foreign institutions moved −0.6 points over the same window, to 2.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −1.4 points over 6 quarters to 16.1%; Foreign institutions: −0.6 points over 6 quarters to 2.9%; Promoters: +0.0 points over 6 quarters to 68.8%.

🚨 Why the register moved: domestic institutions drove it (−1.4 points), alongside foreign institutions (−0.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Carraro India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Frequently asked questions