Carraro India IPO - Price Band, Allotment And Listing Date, Financials, Peer Comparison And More: DRChoksey

Deven Choksey Research Report

Carraro India Ltd. will open its initial public offering on December 20 and the three day offer will conclude on Dec. 24. The company has fixed the price band in the range of Rs 668 to Rs 704 per share.

The Rs 1,250 crore IPO is an entirely offer-for-sale of Rs 1.78 crore shares. Since the IPO is entirely an OFS, proceeds from the offer will go directly to the selling shareholders.

The allotment for the Carraro India IPO is expected to be finalised on Dec. 26.

The tentative date of listing on exchanges is Dec. 30.

Outlook and Valuation:

Carraro India is a leader in non-captive agricultural and construction vehicle transmission systems, supported by strong OEM relationships with Mahindra, TAFE, and Escorts.

The company’s innovative product portfolio and export-driven diversification highlight its potential to leverage emerging trends like electrification. However, the company faces challenges, including lagging revenue growth, low margins (Ebitda: 7.4%, net profit margin: 3.5%), and subpar return ratios (RoE: 17.7%, RoCE: 19.4%) compared to peers.

A P/E multiple of 64.0 times further raises concerns about overvaluation compared to peers, given its smaller scale and weaker profitability. Dependence on cyclical markets and a single manufacturing base adds operational risks.

While Carraro India has a strong market presence, but valuation and operational inefficiencies warrant a cautious approach. Hence, we assign a Neutral rating to the company

Click on the attachment to read the full IPO report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.