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Carraro India Ltd. (IN:CARRARO)
:CARRARO
India Market
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Carraro India Ltd. (CARRARO) AI Stock Analysis

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IN:CARRARO

Carraro India Ltd.

(CARRARO)

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Neutral 64 (OpenAI - 5.2)
Rating:64Neutral
Price Target:
₹532.00
▼(-9.52% Downside)
Action:Reiterated
Date:07/10/26
The score is driven primarily by solid financial performance—strong FY2026 growth, rising earnings, and improving balance-sheet strength—tempered by concerns around cash-flow consistency and potential margin pressure. Technicals are supportive on trend (above key moving averages) but mixed on momentum (negative MACD). Valuation is moderate with a mid-20s P/E and a low dividend yield.
Positive Factors
Revenue and Earnings Growth
A large, sustained revenue and earnings jump in FY2026 demonstrates the company's ability to scale sales and convert higher volumes into profits. Over a multi‑month horizon this supports stronger bargaining power with suppliers, potential program wins with OEMs, and provides capacity to reinvest in product development or capacity expansion.
Negative Factors
Cash‑Conversion Volatility
Inconsistent conversion of profits to cash signals working‑capital swings or higher reinvestment needs, which can force short‑term financing even when earnings rise. Over 2–6 months this can constrain the firm's ability to sustainably fund capex, service unexpected costs, or withstand an OEM order slowdown without tapping liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Earnings Growth
A large, sustained revenue and earnings jump in FY2026 demonstrates the company's ability to scale sales and convert higher volumes into profits. Over a multi‑month horizon this supports stronger bargaining power with suppliers, potential program wins with OEMs, and provides capacity to reinvest in product development or capacity expansion.
Read all positive factors

Carraro India Ltd. (CARRARO) vs. iShares MSCI India ETF (INDA)

Carraro India Ltd. Business Overview & Revenue Model

Company Description
Established in 1997 and headquartered in Pune, India, Carraro India Limited specializes in the production and global distribution of a wide array of automotive and industrial components, alongside heavy equipment. The company supplies critical par...
How the Company Makes Money
Carraro India makes money mainly by manufacturing and selling drivetrain components and assemblies—primarily axles and transmission/drive systems—for use in off-highway vehicles such as tractors and construction equipment. Its core revenue stream ...

Carraro India Ltd. Financial Statement Overview

Summary
Strong growth and higher earnings in FY2026, with a strengthening balance sheet (higher equity and lower debt). Offsetting this, cash-flow consistency is a concern given weaker cash conversion in FY2025, and FY2026 implied gross margin appears lower, hinting at potential margin pressure despite the revenue surge.
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
BreakdownTTMMar 2025Mar 2025
Income Statement
Total Revenue10.23B22.55B18.00B
Gross Profit2.33B3.87B4.46B
EBITDA1.08B2.38B1.86B
Net Income554.16M1.31B881.17M
Balance Sheet
Total Assets11.81B12.69B11.07B
Cash, Cash Equivalents and Short-Term Investments987.29M904.09M683.48M
Total Debt1.83B1.55B1.91B
Total Liabilities6.88B7.04B6.49B
Stockholders Equity4.93B5.65B4.58B
Cash Flow
Free Cash Flow687.10M851.59M243.19M
Operating Cash Flow1.16B1.17B762.87M
Investing Cash Flow-463.79M-306.72M-505.03M
Financing Cash Flow-806.43M-713.55M-598.46M

Carraro India Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
₹25.15B14.381.93%6.30%10.84%
69
Neutral
₹36.26B55.620.28%77.00%131.14%
64
Neutral
₹30.63B23.061.25%
61
Neutral
₹23.80B17.520.56%8.11%29.23%
61
Neutral
₹33.75B46.280.62%16.79%-4.03%
57
Neutral
₹18.13B38.480.09%28.21%65.76%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:CARRARO
Carraro India Ltd.
539.50
93.08
20.85%
IN:AUTOAXLES
Automotive Axles Limited
1,654.20
-19.47
-1.16%
IN:DIVGIITTS
Divgi TorqTransfer Systems Ltd.
1,149.80
487.05
73.49%
IN:GNA
GNA Axles Ltd
539.90
229.33
73.84%
IN:JTEKTINDIA
JTEKT India Limited
121.30
-47.55
-28.16%
IN:RACLGEAR
RACL Geartech Ltd
1,636.20
733.54
81.27%

Carraro India Ltd. Corporate Events

Carraro India Clears FY26 Results, Proposes Dividend and Appoints Cost Auditor
May 26, 2026
Carraro India Ltd. reported that its board has approved the audited standalone and consolidated financial statements for the quarter and full year ended 31 March 2026, reaffirming the company’s compliance with regulatory reporting standards....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2026