What does CARE Ratings do?

CARE Ratings Ltd is a leading credit rating agency in India, providing ratings and research services in the capital markets sector. As of March 2025, it reported net sales of ₹110 Cr and a net profit of ₹43 Cr, with a market cap of ₹5,312 Cr.

Overview:<BR>CARE Ratings Ltd is a leading credit rating agency in India, operating within the capital markets sector and classified as a mid-cap company.<BR><BR>History:<BR>Incorporated on April 21, 1993, as Credit Analysis & Research Limited, the company rebranded to CARE Ratings Limited on February 22, 2017. The latest quarterly results reported net sales and net profit for March 2025.<BR><BR>Financial Snapshot:<BR>- Net Sales: 110 Cr (Quarterly Results - Mar 2025)<BR>- Net Profit: 43 Cr (Quarterly Results - Mar 2025)<BR>- Market cap: Rs 5,312 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>- P/E: 39.00<BR>- Industry P/E: 50<BR>- Dividend Yield: 1.00%<BR>- Debt Equity: -0.09<BR>- Return on Equity: 17.02%<BR>- Price to Book: 6.64<BR><BR>Contact Details:<BR>Address: 4th Floor Godrej Coliseum, Somaiya Hospital Road Sion(E) Mumbai Maharashtra : 400022<BR>Tel: 91-22-67543456<BR>Email: care@careratings.com<BR>Website: http://www.careratings.com

Who are the peers of the CARE Ratings?

Peers of CARE Ratings include HDFC AMC, Motil.Oswal.Fin., Nippon Life Ind., and others. In terms of management risk, HDFC AMC and Nippon Life Ind. are rated excellent, while CARE Ratings has below-average growth and a 1-year return of 74.50%.

Peers: The peers of CARE Ratings are HDFC AMC, Motil.Oswal.Fin., Nippon Life Ind., 360 ONE, Share India Sec., Monarch Networth, Geojit Fin. Ser., Indo Thai Sec., Dam Capital Advi.<BR><BR>Quality Snapshot: Excellent management risk is observed at HDFC AMC, Nippon Life Ind., and 360 ONE, while Good management risk is found at Motil.Oswal.Fin. and Dam Capital Advi. Average management risk is present at Share India Sec., Monarch Networth, Geojit Fin. Ser., and Indo Thai Sec. In terms of Growth, Excellent growth is noted at Share India Sec., Monarch Networth, and Dam Capital Advi, while Average growth is seen at Nippon Life Ind., 360 ONE, and CARE Ratings. Below Average growth is specifically attributed to CARE Ratings. Excellent capital structure is shared by HDFC AMC, Nippon Life Ind., 360 ONE, Motil.Oswal.Fin., CARE Ratings, Share India Sec., Monarch Networth, Geojit Fin. Ser., Indo Thai Sec., and Dam Capital Advi.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Share India Sec. at 181.70%, while the lowest is Geojit Fin. Ser. at -1.67%. CARE Ratings has a 1-year return of 74.50%, which is significantly higher than Geojit Fin. Ser. Additionally, the six-month returns for Monarch Networth and Geojit Fin. Ser. are negative.

Is CARE Ratings overvalued or undervalued?

As of August 21, 2023, CARE Ratings is considered very expensive and overvalued with a PE ratio of 38.63 and other key financial metrics indicating it trades at a premium, making it potentially unattractive for new investors despite a strong past year performance.

As of 21 August 2023, the valuation grade for CARE Ratings has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its key financial ratios, which include a PE ratio of 38.63, an EV to EBIT of 36.40, and a Price to Book Value of 6.57. These metrics suggest that the stock is trading at a premium compared to its earnings and book value.<BR><BR>In comparison to its peers, CARE Ratings' PE ratio is lower than CRISIL's 55.38 but higher than ICRA's 37.22, while its EV to EBITDA of 33.65 is also less favorable than CRISIL's 40.01. The PEG ratio of 1.07 indicates that the stock is relatively expensive in relation to its growth rate. Despite a strong performance in the past year, with a return of 73.57% compared to the Sensex's 7.58%, the current valuation suggests that CARE Ratings may not provide an attractive entry point for investors at this time.

Who are in the management team of CARE Ratings?

As of March 2023, the management team of CARE Ratings includes Venkatadri Chandrasekaran, Adesh Kumar Gupta, Sonal Desai, Najib Shah (Chairman), M Mathisekaran, Nehal Shah (Company Secretary), Mehul Harshadray Pandya (Managing Director & CEO), Gurumoorthy Mahalingam, and Sobhag Mal Jain, who oversee the company's operations and strategic direction.

As of March 2023, the management team of CARE Ratings includes the following individuals:<BR><BR>1. Venkatadri Chandrasekaran - Independent Director<BR>2. Adesh Kumar Gupta - Non-Executive & Independent Director<BR>3. Sonal Desai - Non-Executive & Independent Director<BR>4. Najib Shah - Chairman & Independent Director<BR>5. M Mathisekaran - Non-Executive & Independent Director<BR>6. Nehal Shah - Company Secretary & Compliance Officer<BR>7. Mehul Harshadray Pandya - Managing Director & CEO<BR>8. Gurumoorthy Mahalingam - Independent Director<BR>9. Sobhag Mal Jain - Director<BR><BR>This team is responsible for overseeing the operations and strategic direction of the company.

Who are the top shareholders of the CARE Ratings?

The top shareholders of CARE Ratings include foreign institutional investors (23.74%), mutual funds (14.42%), and the Life Insurance Corporation of India (9.58%), with individual investors holding 25.48%. There are no pledged promoter holdings, and no single promoter has the highest stake.

The top shareholders of CARE Ratings include a mix of institutional and individual investors. Notably, foreign institutional investors (FIIs) hold 23.74% of the shares, while mutual funds account for 14.42% through five different schemes. The Life Insurance Corporation of India is the highest public shareholder, owning 9.58%. Additionally, individual investors collectively hold 25.48% of the company's shares. There are no pledged promoter holdings, and there is no single promoter with the highest holding.

When is the next results date for CARE Ratings?

The next results date for CARE Ratings is August 5, 2025.

The next results date for CARE Ratings is scheduled for August 5, 2025.

How big is CARE Ratings?

As of 24th July, CARE Ratings Ltd has a market capitalization of 5,542.00 Cr, with recent Net Sales of 402.32 Cr and a Net Profit of 137.23 Cr. The company has Shareholder's Funds of 806.27 Cr and Total Assets of 957.73 Cr as of March 2025.

As of 24th July, CARE Ratings Ltd has a market capitalization of 5,542.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, CARE Ratings reported Net Sales of 402.32 Cr and a Net Profit of 137.23 Cr.<BR><BR>For the latest annual period ending in March 2025, the company has Shareholder's Funds amounting to 806.27 Cr and Total Assets of 957.73 Cr.

Are CARE Ratings latest results good or bad?

CARE Ratings reported strong growth for the quarter ending June 2025, with net sales up 20.40% and profit after tax rising 24.4%. However, concerns about reliance on non-operating income and a decline in its score suggest a cautious outlook, leading to a current stock rating of 'Hold.'

CARE Ratings has reported a generally positive performance for the quarter ending June 2025, with notable year-on-year growth in key financial metrics. Net sales reached Rs 203.56 crore, reflecting a growth of 20.40%, while profit before tax (PBT) increased by 27.91% to Rs 23.74 crore. Additionally, profit after tax (PAT) rose by 24.4% to Rs 25.78 crore.<BR><BR>However, there are some concerns regarding the company's reliance on non-operating income, which constitutes a significant portion (36.59%) of its PBT. This reliance raises questions about the sustainability of its business model moving forward. Furthermore, the company's score has declined from 18 to 13 over the past three months, which may indicate some underlying issues.<BR><BR>Overall, while the financial results show strong growth, the challenges related to non-operating income and the decline in the score suggest a cautious outlook. The stock is currently rated as a 'Hold,' reflecting this cautious sentiment.

Has CARE Ratings declared dividend?

Yes, CARE Ratings Ltd has declared an 80% dividend, amounting to ₹7 per share, with an ex-date of November 5, 2024. The company has shown positive total returns across various periods, with a total return of 270.99% over the last 5 years.

CARE Ratings Ltd has declared a dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 80%<BR>- Amount per share: 7<BR>- Ex-date: Nov-05-2024<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the last 3 months, the price return was -2.14%, the dividend return was 0.50%, resulting in a total return of -1.64%.<BR><BR>Over the past 6 months, the price return was 4.39%, the dividend return was 0.52%, leading to a total return of 4.91%.<BR><BR>In the 1-year period, the price return was 13.28%, the dividend return was 0.59%, culminating in a total return of 13.87%.<BR><BR>For the 2-year period, the price return was 86.39%, the dividend return was 2.84%, which resulted in a total return of 89.23%.<BR><BR>In the last 3 years, the price return was 199.77%, the dividend return was 9.17%, resulting in a total return of 208.94%.<BR><BR>Over the past 4 years, the price return was 144.99%, the dividend return was 9.78%, leading to a total return of 154.77%.<BR><BR>In the 5-year period, the price return was 256.47%, the dividend return was 14.52%, culminating in a total return of 270.99%.<BR><BR>Overall, CARE Ratings has declared a substantial dividend while also demonstrating positive total returns across various periods, indicating a strong performance in both dividends and stock price appreciation.

How has been the historical performance of CARE Ratings?

CARE Ratings has shown consistent growth in net sales and profit, with net sales increasing from 247.63 crore in March 2022 to 402.32 crore in March 2025, and profit after tax rising from 76.83 crore to 140.00 crore during the same period, reflecting strong financial health.

Answer:<BR>The historical performance of CARE Ratings shows a consistent growth trend in net sales and profit over the years, with the latest figures for March 2025 indicating net sales of 402.32 crore and a profit after tax of 140.00 crore.<BR><BR>Breakdown:<BR>CARE Ratings has demonstrated a steady increase in total operating income, rising from 247.63 crore in March 2022 to 402.32 crore in March 2025. This growth is accompanied by a corresponding rise in operating profit, which increased from 79.61 crore in March 2022 to 155.34 crore in March 2025, reflecting an operating profit margin that improved from 32.15% to 38.61% over the same period. Profit before tax also showed a positive trend, climbing from 98.63 crore in March 2022 to 192.27 crore in March 2025. The profit after tax followed suit, reaching 140.00 crore in March 2025, up from 76.83 crore in March 2022. On the balance sheet, total assets grew from 725.07 crore in March 2022 to 957.73 crore in March 2025, while total liabilities increased from 725.07 crore to 957.73 crore, indicating a stable financial position. Cash flow from operating activities has also improved, with a cash flow of 90.00 crore in March 2024, up from 68.00 crore in March 2022. Overall, CARE Ratings has shown robust financial health and growth in key performance metrics over the years.

Should I buy, sell or hold CARE Ratings?

Which are the latest news on CARE Ratings?

Why is CARE Ratings falling/rising?

As of 04-Dec, CARE Ratings Ltd's stock price is rising to 1,532.90, driven by strong financial performance, increased investor participation, and consistent returns. The stock has outperformed its sector and shows positive trends in key financial indicators, despite some long-term growth concerns.

As of 04-Dec, CARE Ratings Ltd's stock price is rising, currently at 1,532.90, with a change of 4.75 (0.31%) upwards. This increase can be attributed to several positive factors. The stock has outperformed its sector by 0.82% today and has shown a consecutive gain over the last two days, rising 3.65% in that period. Additionally, there has been a notable increase in investor participation, with delivery volume rising by 5.11% against the 5-day average.<BR><BR>The company has also demonstrated strong financial performance, having declared positive results for the last nine consecutive quarters. Key indicators such as Return on Capital Employed (ROCE) at 24.14%, cash and cash equivalents at Rs 286.60 crore, and net sales at Rs 136.37 crore are at their highest levels. Furthermore, the stock has shown consistent returns over the past three years, generating a 7.14% return in the last year and outperforming the BSE500 in each of the last three annual periods.<BR><BR>Moreover, the company maintains a low debt-to-equity ratio and high institutional holdings at 55.21%, indicating confidence from larger investors who have increased their stake by 0.83% over the previous quarter. These factors collectively contribute to the stock's upward movement, despite some concerns regarding long-term growth and valuation metrics.

Is CARE Ratings technically bullish or bearish?

As of December 4, 2025, the trend is mildly bullish due to daily moving averages, but caution is advised as weekly MACD and KST remain bearish, indicating mixed momentum.

As of 4 December 2025, the technical trend has changed from mildly bearish to mildly bullish. The current stance is mildly bullish, driven primarily by the daily moving averages indicating a bullish signal. However, the weekly MACD and KST remain bearish, suggesting caution. The Bollinger Bands show a mixed picture with a bullish monthly signal but a mildly bearish weekly signal. Overall, while there are some bullish indicators, the presence of bearish signals in the weekly time frame indicates a lack of strong momentum.