Why is CARE Ratings falling/rising?

Aug 25 2025 09:27 PM IST
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As of 25-Aug, CARE Ratings Ltd's stock price is at 1,610.30, down 1.2%, reflecting a recent trend reversal despite strong long-term performance and high institutional confidence. The decline is attributed to reduced investor participation, with a 34.4% drop in delivery volume, contrasting with its year-to-date return of 18.82%.
As of 25-Aug, CARE Ratings Ltd is experiencing a decline in its stock price, currently at 1,610.30, which reflects a decrease of 19.6 points or 1.2%. Today's price summary indicates that the stock has outperformed its sector by 0.5%, but it has also seen a trend reversal after two consecutive days of gains. The stock's performance over the past week shows a slight decline of 0.24%, and over the past month, it has fallen by 7.56%. Despite a strong year-to-date return of 18.82% and impressive long-term performance with a 61.51% increase over the past year, the recent drop may be attributed to a significant decrease in investor participation, with delivery volume falling by 34.4% against the five-day average. The company's low debt-to-equity ratio and consistent positive results over the last eight quarters, including a 21.07% growth in net sales, suggest a stable financial position, yet these factors have not prevented the recent price decline.

In the broader market context, the stock's short-term performance has lagged behind the benchmark, with the Sensex gaining 0.45% over the past week while CARE Ratings has decreased by 0.24%. This underperformance in the short term contrasts sharply with its long-term gains, as the stock has significantly outperformed the BSE500, which has generated negative returns of -2.11% over the last year. The high institutional holdings at 54.38% indicate confidence from larger investors, who have increased their stake by 1.25% in the previous quarter, suggesting that while the stock is facing short-term challenges, its fundamentals remain strong, potentially providing a buffer against further declines.
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