Canara Robeco Asset Management Company Ltd.
ISIN: INE218I01013 • Market Cap: ₹5,013 Cr
The 5-Pillar Quality Audit for Canara Robeco Asset Management Company Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (61.0%), Return on Capital Employed (36.1%), and equity compounding (27.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (12.1%) and 3Y PAT CAGR (13.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 22.95 vs PEG of 1.75 and Dividend Yield of 1.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 75.0%, backed by 10.6% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 36.1%)
Canara Robeco Asset Management Company Ltd. generates exceptional return on capital employed of 36.1%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 27.3%)
Shareholder equity compounds at a healthy 27.3%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking CRAMC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 82/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Financial Services Sector Peer Comparison
Compare CRAMC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Canara Robeco Asset Management Company Ltd. (CRAMC)Current | 82/100 | ₹5,013 Cr | 22.95 | 36.1% | 0.00 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Canara Robeco Asset Management Company Ltd.
Q:What is the 5-Pillar Fundamental Score for Canara Robeco Asset Management Company Ltd. (CRAMC)?
Canara Robeco Asset Management Company Ltd. has a RupeeTools Fundamental Score of 82/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (86/100), Growth (70/100), Valuation (73/100), and Ownership Quality (72/100).
Q:Is CRAMC fundamentally strong for long-term investment?
Yes, CRAMC exhibits solid fundamental strength with a 82/100 score, driven by a return on equity of 27.3% and a debt-to-equity ratio of 0.00.
Q:Does CRAMC pass the Coffee Can Investing filter?
Yes! CRAMC satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does CRAMC compare against other Financial Services peers?
Within India's Financial Services sector, CRAMC trades at a P/E of 22.95 and generates an ROCE of 36.1%. Compare its 5-Pillar score of 82/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.