Carraro India Ltd is engaging in manufacturing components ranging from the smallest gear to complete tractor manufacturing. Carraro India IPO is entirely an offer for sale of 1.78 crore shares aggregating to Rs 1250 crores.
IPO opens
December 20, 2024
IPO Closes
December 24, 2024
IPO Size (Rs.)
₹1,250.00 Cr.
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹668 to ₹704 per share
Minimum Lot
21 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Axis Bank Limited, Bnp Paribas, Nuvama Wealth Management Limited
Registrar
Link Intime India Private Ltd
About Carraro India Limited
Carraro India was incorporated on April 11, 1997.
Carraro India is one of the leading independent Tier 1 suppliers of axles, transmission systems and gears for the agricultural tractor and construction vehicle industries in India.
Carraro India, the Indian subsidiary of the Carraro Group, is a major global player in the driveline systems industry, particularly for off-highway vehicles like tractors and construction vehicle.
Carraro India’s foray into the Indian market began in 1997 when it established a manufacturing centre in Pune, India, through a joint venture with Escorts Ltd., In the following years, a second plant was also established for the production of gears and components. Carraro India has since acquired 100% ownership of its manufacturing facilities.
The Company commenced production of transmission systems in 1999, followed by the manufacturing of axles in 2000, marking its entry into the Indian automotive components industry.
It is operating from two manufacturing facilities in Pune.
The company supplied products to 38 manufacturers across India
Financials : Carraro India IPO
Particulars (Rs. Cr)
2024(06)
2023(06)
2024(12)
2023(12)
2022(12)
Revenue from Operations
914.62
961.03
1,788.97
1,713.15
1,497.54
EBITDA
101.1
66.15
150
124.81
82.86
EBITDA Margin (%)
10.96%
6.81%
8.30%
7.20%
5.45%
Net Profit
49.73
24.94
62.56
48.46
22.43
Net Profit Margin (%)
5.44%
2.59%
3.50%
2.83%
1.50%
Equity Share Capital
56.85
56.85
56.85
56.85
56.85
Reserves
362.59
306.11
312.97
280.52
235.64
Net Worth
419.44
362.96
369.82
337.38
292.49
Borrowings
195.78
196.79
212.55
188.33
178.14
Post issue Share Capital
56.85
FV
10.0
IPO price
704.0
EPS Fy24
11
PE
64
EPS Fy25 (annualized)
17.5
PE (annualized)
40.2
Market cap in cr.
4,002
Market cap / Sales
4.16
Anchors: Carraro India IPO
Carraro India has raised Rs 375 crore. from 33 anchor investors. Aditya Birla Sun Life Mutual Fund (MF), HSBC MF, UTI MF, Sundaram MF, Motilal Oswal MF, Kotak Mahindra Life Insurance Company, Bajaj Allianz Life Insurance Company, Tata AIA Life Insurance Company and SBI General Insurance Company are among anchor investors.
Salient Points: Carraro India IPO
Only 10% of IPO for retail.
100% OFS.
Carraro India is one of the leading suppliers in the market supplying key OEMs such as Mahindra Farm division and Swaraj, Tata Hitachi, Escorts Kubota Ltd., Sonalika, Bull Machine, TAFE, ACE, John Deere India Pvt Ltd, Caterpillar, Doosan and CNH across the agricultural and construction vehicle manufacturing sector.
As of March 31, 2024, the Company has established itself as the market leader in providing transmission systems for tractors transmission systems up to 150 horsepower and four-wheel-drive capabilities.
In August 2022, Carraro India inaugurated a new portal axle assembly capable of producing over 42,000 pieces per year to take care of Carraro India’s customer demand with market shift from 2WD to 4WD in 35HP to 50 HP tractor range.
In November 2023, Carraro India developed the eT50/eT75 Transaxle. The eT50/eT75 Transaxle has a power rating of 75HP, making it suitable for various agricultural applications.
Peers: Financials
Particulars (Rs cr)
Sales
EBITDA
EBITDA (%)
Net Profit
NPM (%)
P/E (x)
Mcap/sales
RoE (%)
Carraro India
1,789.00
132.4
7.4
62.6
3.5
64 (40)
4.16
16.9
Escorts Kubota
8,850.00
1,167.00
13.2
1,049.00
11.9
30.4
3.63
12
Schaeffler India
7,226.00
1,327.00
18.4
909
12.6
56.5
6.58
20
Sona BLW Precision
3,185.00
902
28.3
518
16.3
63.7
10.5
20.9
Ramakrishna Forgings
3,955.00
842
21.3
341
8.6
43.8
3.94
17
Happy Forgings.
1,358.00
388
28.6
243
17.9
36.8
6.86
18.7
While Carraro India has lower margins compared to peers, it is seeking a higher valuation.
The Carraro Group has established itself as a leading independent tier 1 supplier of transmission systems and a key provider of axles in the agricultural tractor and construction vehicle industries in India. It has achieved market leadership in transmission systems for tractors up to 150HP with four-wheel drive capabilities.
Domestic sales accounting for 65% of its revenue in the last fiscal year.
The company commands a 60-65% market share in the non-captive agricultural tractor and construction vehicle transmission market in India.
Carraro India operates two manufacturing plants in Pune, one for drivelines and another for gears. The capacity utilization of the Driveline plant for fiscal 2024 was 81%, while the Gears manufacturing plant operated at 90% capacity.
Heavy reliance on agricultural and construction vehicle markets. fluctuations in these sectors
PE (FY25 annualized) 40x-Loss ; PE FY24 64x
I am likely to skip Carraro India IPO. though i have a neutral view on the IPO Valuation does not look comfortable compared to peers.
GMP as per social media could be low or NIL.
This post is exploratory and for educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
