Carraro India Ltd. (CARRARO) AI Stock Analysis

Carraro India Ltd.

(NSE:CARRARO)

Select Model

Rating:76Outperform

Price Target:INR 575.00▲(20.37% Upside)

Action:reiterated

Date:10/10/26

Carraro India’s strong growth, profitability, and improving cash generation are the primary drivers of a solid overall score, supported by a reasonable valuation, while somewhat soft but not oversold technicals and exposure to cyclical auto demand keep the rating below the top tier.

Positive Factors

Revenue and earnings growthRapid revenue acceleration combined with higher net income indicates stronger demand and operating scale in Carraro India's drivetrain business. If sustained, this growth can broaden the earnings base, support reinvestment, and strengthen the company's position with agricultural and construction equipment OEMs.

Negative Factors

Potential gross-margin pressureThe implied gross-margin decline suggests that rapid revenue growth may be accompanied by less favorable mix or higher production costs. Unless addressed through pricing, localization, or efficiency, sustained margin pressure could limit earnings conversion and reduce the benefit of expanding sales.

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

Market Cap: INR 27.21B
Dividend Yield: 1.42%
Average Volume (3M): 45.92K
Price to Earnings (P/E): 20.5
Beta (1Y): 1.81
Revenue Growth: ―
EPS Growth: ―
Country: India
Employees: 908
Sector: General
Sector Strength: 55
Industry: Auto - Parts

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 parts...

How the Company Makes Money

Carraro India makes money primarily by manufacturing and selling drivetrain components and systems (notably axles and transmission/gearbox solutions) to original equipment manufacturers (OEMs) serving the agricultural and construction equipment marke...

Carraro India Ltd. Financial Statement Overview

Summary

Strong revenue, earnings, and cash-flow growth backed by a strengthening balance sheet and moderate, declining leverage; limited recent margin and return data and auto-sector cyclicality slightly temper the score.

Income Statement

88Very Positive

Balance Sheet

84Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2025
Income Statement
Total Revenue	10.23B	18.00B	22.55B
Gross Profit	2.33B	4.46B	3.87B
EBITDA	1.08B	1.86B	2.38B
Net Income	554.16M	881.17M	1.31B
Balance Sheet
Total Assets	11.81B	11.07B	12.69B
Cash, Cash Equivalents and Short-Term Investments	987.29M	683.48M	904.09M
Total Debt	1.83B	1.91B	1.55B
Total Liabilities	6.88B	6.49B	7.04B
Stockholders Equity	4.93B	4.58B	5.65B
Cash Flow
Free Cash Flow	687.10M	243.19M	851.59M
Operating Cash Flow	1.16B	762.87M	1.17B
Investing Cash Flow	-463.79M	-505.03M	-306.72M
Financing Cash Flow	-806.43M	-598.46M	-713.55M

Carraro India Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price477.70

Price Trends

50DMA519.93Negative

100DMA526.62Negative

200DMA523.35Negative

Market Momentum

MACD-10.66Positive

RSI38.61Neutral

STOCH61.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CARRARO, the sentiment is Negative. The current price of 477.70 is below the 20-day moving average (MA) of 500.63, below the 50-day MA of 519.93, and below the 200-day MA of 523.35, indicating a bearish trend. The MACD of -10.66 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 61.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CARRARO.

Carraro India Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:CARRARO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CARRARO	76Outperform	INR 27.16B	20.48	―	1.42%	―	―
IN:GNA	71Outperform	INR 22.95B	15.83	―	0.56%	23.06%	38.22%
IN:AUTOAXLES	66Neutral	INR 23.37B	13.35	―	2.06%	6.30%	10.84%
IN:RACLGEAR	56Neutral	INR 16.07B	32.22	―	0.11%	28.21%	65.76%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:DIVGIITTS	55Neutral	INR 28.72B	45.46	―	0.35%	77.00%	131.14%
IN:JTEKTINDIA	40Underperform	INR 30.45B	41.85	―	0.68%	16.79%	-4.03%

* General Sector Average

Performance Comparison

IN:CARRARO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:CARRARO	Carraro India Ltd.	477.70	-35.52	-6.92%
IN:AUTOAXLES	Automotive Axles Limited	1546.80	-105.98	-6.41%
IN:DIVGIITTS	Divgi TorqTransfer Systems Ltd.	939.10	315.23	50.53%
IN:GNA	GNA Axles Ltd	534.60	215.79	67.68%
IN:JTEKTINDIA	JTEKT India Limited	109.80	-54.87	-33.32%
IN:RACLGEAR	RACL Geartech Ltd	1363.65	264.89	24.11%

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: Oct 10, 2026

Carraro India Ltd. AI Stock Analysis