Carraro India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Carraro India Limited's recent performance reflects a significant structural shift towards 4WD tractors, bolstered by robust growth in construction equipment exports. Management's confidence in achieving INR 3,500-4,000 crores in revenues by FY30 underscores the company's strategic focus on capacity expansion and new product development, particularly in electric transmissions. However, the cautious outlook for FY27, with moderated revenue growth expectations of 4-8%, highlights potential challenges from geopolitical tensions and supply chain volatility. Vista's forecast aligns with these developments, anticipating stable margins supported by ongoing efficiency initiatives, while the balance sheet remains strong with manageable leverage. The automotive ancillary sector's growth, driven by electric vehicle adoption and government support, further enhances Carraro's long-term prospects. Over the next 12-24 months, key opportunities include the ramp-up of new products and engineering services, while headwinds may arise from geopolitical uncertainties and rising energy costs. Overall, Carraro's outlook remains constructive, with a target price reflecting a modest expected upside
Why We Like This Stock
- Significant structural shift towards 4WD tractors is driving domestic growth
- Strong export performance, particularly in construction equipment, supports revenue targets
- Management's focus on electric transmissions and capacity expansion positions the company for future opportunities
Things To Watch Out For
- Cautious revenue growth outlook for FY27 due to geopolitical tensions and supply chain volatility
- Potential impacts from rising energy costs could pressure margins
- Subdued performance in the gears business may hinder overall growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,770 | 1,792 | 2,239 | 2,122 | 2,316 |
| Profit Before Tax (Cr.) | 82 | 115 | 178 | 164 | 180 |
| PBT Margin | 4.6% | 6.4% | 794.4% | 7.7% | 7.8% |
| Net Profit (Cr.) | 58 | 86 | 133 | 122 | 135 |
| Earnings Per Share | 10.3 | 15.1 | 23.4 | 21.5 | 23.7 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Carraro India Limited manufactures and sells automotive equipment, parts, and components in India and internationally. The company offers mechanical transmissions, clutches, hydraulic lifts and planetary drives, and axles for agricultural tractors; and construction equipment, including components, parts and spares, backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders. It also provides gears, shafts, and ring gears for industrial, automotive, and material handling applications. The company was incorporated in 1997 and is based in Pune, India. Carraro India Limited operates as a subsidiary of Carraro International S.E.