The shares of this auto ancillary stock is in focus after shares worth Rs 1,234 crore are eligible to trade and are trading at almost 40 percent below its IPO price. In this article, we will discuss more about this in detail.
With a market capitalization of Rs 2,476 crores, the shares of Carraro India Ltd are currently trading at Rs 435 per share, down by percent from its 52-week high of Rs 691.30 per share. Over the last six months, the stock has corrected by over 32 percent.
On Thursday, the lock-in for pre IPO shareholders ends for the company. Over 2.8 crore shares are eligible to be traded on the exchange, which represents around 49 percent of the company’s equity.
The total value of the shares is estimated to be around Rs 1,234 crore. However, it is to be noted that lock-in expiry doesn’t mean that shares are sold; they only get eligible to trade.
Interestingly, at present, the company shares are only down by 1.37 percent; however, we should wait to see if any further movements are expected to arise in the shares. Furthermore, the stock is also placed under stage 1 of the long-term Additional Surveillance Measures (ASM) framework.
Financial Highlights
The company reported a revenue of Rs 1,808 crores in FY25, up by 1.06 percent from its FY24 revenue of Rs 1,789 crores. Additionally, the company reported a net profit growth of 40 percent to Rs 88 crore in FY25 from Rs 63 crores in FY24.
The stock delivered an ROE and ROCE of 21.29 percent and 22.90 percent, respectively, and is currently trading at a P/E of 28.07x as compared to its industry average of 27.88x.
Carraro India Limited, founded in 1997 and based in Pune, is a subsidiary of Carraro International S.E. The company is in the business of manufacturing and marketing automotive equipment and parts, domestically and internationally.
Carraro India’s products include mechanical transmissions, clutches, hydraulic lifts, planetary drives, and axles, mainly for agricultural tractors and construction equipment. Carraro India also manufactures gears, shafts, and ring gears for different industrial and automotive vehicles.
Written by Satyajeet Mukherjee
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