Why is CARE Ratings falling/rising?

Jun 30 2025 09:10 PM IST
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As of 30-Jun, CARE Ratings Ltd's stock price is Rs 1,794.60, having increased by 1.32%. Despite short-term underperformance against the Sensex, the stock has strong fundamentals and a year-to-date gain of 32.42%, though concerns about long-term growth and declining retail investor interest remain.
As of 30-Jun, CARE Ratings Ltd's stock price is currently at Rs 1,794.60, reflecting an increase of Rs 23.4 or 1.32%. The stock has shown a positive performance today, having outperformed its sector by 0.33% and gaining 2.22% over the last two days. However, it opened with a loss of 2.61% and reached an intraday low of Rs 1,725. Despite this, the company has demonstrated strong fundamentals, including a low debt-to-equity ratio and positive results over the last seven consecutive quarters, with significant growth in both profit before tax and profit after tax. The stock has also consistently outperformed the BSE 500 over the past three years, generating a 68.49% return in the last year alone. However, concerns about its long-term growth persist, as net sales and operating profit have grown at relatively modest rates over the past five years, and the stock is trading at a premium compared to its peers.

In the broader market context, the stock has underperformed the Sensex in the short term, with a 1-week return of -1.79% compared to the Sensex's +2.09%. Despite this short-term decline, the stock's year-to-date performance remains strong at +32.42%, significantly outpacing the Sensex's +7.00%. The high institutional holdings at 53.13% indicate confidence from larger investors, which may provide some stability. However, the falling investor participation, as evidenced by a 57.36% drop in delivery volume, could signal waning interest among retail investors, potentially impacting future price movements.
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