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Carrier is a leading supplier of high-technology heating, air-conditioning, and refrigeration solutions to a range of customers in all parts of Asia. Carrier is a world leader in high-technology heating, air-conditioning, and refrigeration solutions.

Achievements - With 14 offices and 800+ partners, it ensures quality service nationwide. In FY23, Carrier India (HVAC) achieved its "Zero Accident" goals, surpassing 34 million hours without lost time due to employee injury equivalent to over 16 years of safety success.

Financials - In FY23, the company's revenue surged by Rs. 585 cr, driven by robust sales in finished and traded goods, notably a significant boost from air conditioner-related services (Rs. 484 cr). Domestic sales also excelled by Rs. 580 cr. Notably, there has been a significant improvement in both Profit Before Tax (PBT) margins, increasing from 3.5% in FY22 to 6.5% in FY23, and Profit After Tax (PAT) margins, rising from 2.6% in FY22 to 5% in FY23. ​

​Ratio Analysis- With the D/E ratio as low as 0.1, the company appears virtually debt-free. Furthermore, the ROA has seen a significant improvement, driven by a 25% growth in the company's assets.

​Collaborations/ Key stakeholders - DLF has collaborated with Carrier to enhance energy efficiency in alignment with DLF's core priorities of "Sustainability, energy efficiency, and governance" across their projects. Additionally, Carrier Corporation, the holding company based in Delaware, currently maintains a significant 96.5% ownership stake in the company.

Investment Thesis - The company has demonstrated commendable performance, showcasing an upward trajectory in margins over time and successfully reaching pre-COVID levels.

Following a thorough analysis conducted at an investment price of Rs. 645, it was noted that the company was undervalued. This assessment is based on its P/E ratio of 62.4x, which was lower than the industry's average range of 75-80x, and an EV/EBITDA multiple of 39.9x, which was also below the industry standard of 46.3x. These indicators suggested an investment opportunity. Upon detailed evaluation as per the current market conditions, the stock's intrinsic value was determined to be Rs. 740, after accounting for a discount adjustment.