CARE Ratings Downgraded to 'Sell' by MarketsMOJO, Indicating Limited Growth Potential
CARE Ratings, a smallcap company in the ratings industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 19, 2024. This decision was based on various factors, including poor long-term growth, a bearish technical trend, and a high valuation.Over the last 5 years, CARE Ratings has only seen a 2.19% annual growth in net sales and a -15.62% growth in operating profit. This indicates a lack of strong growth potential for the company. Additionally, the stock is currently in a bearish range and both the MACD and KST technical factors are also bearish.
Furthermore, the company's ROE (return on equity) is at a high of 14, making its valuation very expensive with a price to book value of 4.1. However, the stock is currently trading at a fair value compared to its historical valuations. In the past year, the stock has generated a return of 28.97%, but its profits have only risen by 18%, resulting in a PEG ratio of 1.6.
On the other hand, CARE Ratings has shown high management efficiency with a ROE of 15.93%. The company also has a low debt to equity ratio, indicating a healthy financial position. In addition, it has declared positive results for the last 4 consecutive quarters, with the highest operating cash flow of Rs 90.88 crore and a 20.22% growth in net sales in the last 9 months.
Moreover, CARE Ratings has a high institutional holding of 48%, which indicates that these investors have better capabilities and resources to analyze the fundamentals of the company compared to retail investors. Their stake in the company has also increased by 3.38% in the previous quarter.
In conclusion, while CARE Ratings may have some positive aspects such as high management efficiency and low debt to equity ratio, the overall outlook for the company is not favorable. With a 'Sell' rating from MarketsMOJO and various factors indicating a lack of growth potential, investors may want to reconsider their investment in this smallcap ratings company.
{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)
{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)
{{text.big_txt}}
{{text .small_txt}}
{{dashverdictresult.dashboard.stock_details.short_name}}
SEND BY EMAIL
Register now to see if the stock’s characteristics match your investment style
Subscribe now to see if the stock's characteristics match your investment style
{{dashverdictresult.dashboard.risk_return_voltality.risk_type}}, {{dashverdictresult.dashboard.risk_return_voltality.return_type}}
| {{ value[0] }} | {{ value[1] }} | {{ value[2] }} | {{ value[3] }} |
| {{ value[0] }} | {{ value[1] }} | {{ value[2] }} | {{ value[3] }} |
Create your portfolio and know how much should this stock be in your portfolio
Subscribe now to know how much you should hold in this stock
We have found 2 better stocks that you can consider
{{dashverdictresult.dashboard.return_text}}
Investors Returns (3 years) –
| Period | 6M | 1Y | 2Y | 3Y |
| {{ keyd.val }} | ||||
| {{ keyd.val }} |
Quality: {{dashverdictresult.dashboard.dotsummary.q_txt}}
Valuation: {{dashverdictresult.dashboard.dotsummary.v_txt}}
Quarterly Financial Trend: {{dashverdictresult.dashboard.dotsummary.f_txt}}
Technicals: {{dashverdictresult.dashboard.dotsummary.tech_txt}}
Stock Info:
BSE – {{dashverdictresult.dashboard.stock_details.scripcode}}/ NSE – {{dashverdictresult.dashboard.stock_details.symbol}}
Market Cap – {{dashverdictresult.dashboard.priceinfo.mcap_class}} (Rs. {{dashverdictresult.dashboard.priceinfo.mcap| number :0}} cr)
Sector – {{dashverdictresult.dashboard.stock_details.ind_name}}
52 w H/L (Rs.) – {{dashverdictresult.dashboard.priceinfo.wk_high52}}/{{dashverdictresult.dashboard.priceinfo.wk_low52}}
Average vol (6M) – {{dashverdictresult.dashboard.priceinfo.vol}}
Related Stock Links
- {{stockdata.stock.stock_name.value}} Analysis
- {{stockdata.stock.stock_name.value}} Technicals
- {{stockdata.stock.stock_name.value}} Quality
- {{stockdata.stock.stock_name.value}} Valuation
- {{stockdata.stock.stock_name.value}} Financial Trend
- {{stockdata.stock.stock_name.value}} Return Analysis
- {{stockdata.stock.stock_name.value}} Price Analysis
- {{stockdata.stock.stock_name.value}} Quarterly Result Analysis
- {{stockdata.stock.stock_name.value}} Half-Yearly Result Analysis
- {{stockdata.stock.stock_name.value}} Nine Monthly Result Analysis
- {{stockdata.stock.stock_name.value}} Annual Results
- {{stockdata.stock.stock_name.value}} Balance Sheet
- {{stockdata.stock.stock_name.value}} Profit & Loss
- {{stockdata.stock.stock_name.value}} Cash Flow
- {{stockdata.stock.stock_name.value}} News
- {{stockdata.stock.stock_name.value}} Announcements
- {{stockdata.stock.stock_name.value}} Share Holding
- {{stockdata.stock.stock_name.value}} Peer Comparison
