ICRA Ltd

ICRA maintains a conservative capital structure with a debt-to-equity ratio of 0.01, significantly below the industry median of 0.35, and holds INR 20.15 million in cash and equivalents. The company's liquidity position is characterized as medium risk, with net cash turning negative after subtracting total debt of INR 126.83 million. Operating cash flow of INR 1.07 billion supports strong liquidity, while the current ratio of 4.32 indicates robust short-term solvency. Profitability metrics show ICRA generating a return on equity of 4.8% and return on assets of 3.95%, both below the industry median of 6.2% and 5.1% respectively. The company's operating margin of 36.6% (calculated from operating income of INR 453.80 million on revenue of INR 1.24 billion) is slightly above the sector median of 34.5%. Net income of INR 468.67 million represents a 37.6% margin, which is in line with industry norms. The company operates as a single-segment business with 100% revenue concentration in India, exposing it to domestic economic cycles and regulatory changes. No geographic diversification is evident in the financial data, with all operations and revenue generated domestically. Outlook data indicates a 12.3% revenue growth in the current fiscal year and 9.8% in the next, driven by expansion in corporate credit rating services and government infrastructure projects. Capital expenditures of INR -68.97 million suggest asset optimization rather than expansion, with no material CAPEX planned in the near term. Risk assessment flags include liquidity constraints from negative net cash and a medium liquidity risk rating. Dilution risk is assessed as low, with no recent share issuance and diluted shares equal to basic shares at 9.62 million. No material dilution adjustments were applied in valuation models. Recent analyst estimates show consensus price targets of INR 6,800.00 with a mean recommendation of 2.00 (Buy), but no strong buy ratings. No material events were disclosed in recent filings or transcripts that would materially alter the company's risk profile.