CARE Ratings

Why is CARE Ratings Ltd falling/rising?

As of 15-Jul, CARE Ratings Ltd's stock price is Rs 1,666.95, reflecting a 0.55% increase. The stock has outperformed the Sensex recently, but a significant drop in investor participation raises concerns about future trading activity.

As of 15-Jul, CARE Ratings Ltd is experiencing a slight rise in its stock price, currently at Rs 1,666.95, which reflects an increase of 9.05 (0.55%). This upward movement can be attributed to several factors. Over the past week, the stock has outperformed the benchmark Sensex, gaining 3.82% compared to the Sensex's 0.89%. Additionally, the company has shown strong financial performance, declaring positive results for the last 11 consecutive quarters, with a notable growth in profit before tax and profit after tax.<BR><BR>Despite today's performance indicating that the stock underperformed its sector by 2.64%, it reached an intraday high of Rs 1,698.8, indicating some investor interest. Furthermore, the company is net-debt free and has high institutional holdings at 54.99%, suggesting confidence from larger investors who are typically more adept at analyzing company fundamentals.<BR><BR>However, it is important to note that there has been a significant decline in investor participation, with delivery volume falling by 61.47% against the 5-day average. This could indicate a potential concern for future trading activity. Overall, while the stock is currently rising, the decrease in investor participation may warrant caution moving forward.

Which are the latest news on CARE Ratings?

Should I buy, sell or hold CARE Ratings Ltd?

How big is CARE Ratings?

As of 10th June, CARE Ratings Ltd has a market capitalization of 4,916.00 Cr, with recent Net Sales of 473.07 Cr and a Net Profit of 171.18 Cr.

As of 10th June, CARE Ratings Ltd has a market capitalization of 4,916.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, the company reported Net Sales of 473.07 Cr and a Net Profit of 171.18 Cr.<BR><BR>The latest annual period for the balance sheet is March 2025, with Shareholder's Funds amounting to 806.27 Cr and Total Assets of 957.73 Cr.

Who are in the management team of CARE Ratings?

The management team of CARE Ratings includes Mehul Harshadray Pandya (Managing Director & CEO), Najib Shah (Chairman), and several independent and non-executive directors, along with Nehal Shah as Company Secretary. This diverse team provides strong governance and expertise to the company.

The management team of CARE Ratings includes the following key members:<BR><BR>1. **Mehul Harshadray Pandya** - Managing Director & CEO<BR>2. **Najib Shah** - Chairman & Independent Director<BR>3. **Venkatadri Chandrasekaran** - Independent Director<BR>4. **Adesh Kumar Gupta** - Non-Executive & Independent Director<BR>5. **Sonal Desai** - Non-Executive & Independent Director<BR>6. **M Mathisekaran** - Non-Executive & Independent Director<BR>7. **Gurumoorthy Mahalingam** - Independent Director<BR>8. **Sobhag Mal Jain** - Director<BR>9. **Nehal Shah** - Company Secretary & Compliance Officer<BR><BR>This team brings a diverse range of expertise and governance to the company.

Who are the peers of the CARE Ratings?

CARE Ratings' peers include Prudent Corp, IIFL Capital, Indian Energy Ex, ICRA, Indo Thai Sec., Share India Sec., Monarch Networth, and Geojit Fin. Ser., with varying management risks and growth rates; Indo Thai Sec. leads in 1-year returns at 29.54%, while Indian Energy Ex. has the lowest at -38.63%.

Peers: The peers of CARE Ratings are Prudent Corp, IIFL Capital, Indian Energy Ex, ICRA, Indo Thai Sec., Share India Sec., Monarch Networth, and Geojit Fin. Ser.<BR><BR>Quality Snapshot: Excellent management risk is observed at Prudent Corp and Indian Energy Ex, while Average management risk is found at IIFL Capital, Indo Thai Sec., Share India Sec., Monarch Networth, and Geojit Fin. Ser. Good management risk is attributed to ICRA and CARE Ratings. For Growth, Excellent growth is noted at Prudent Corp, Indo Thai Sec., and Monarch Networth, while Good growth is seen at IIFL Capital and Share India Sec. Below Average growth is reported for Indian Energy Ex, ICRA, and CARE Ratings. All peers have an Excellent capital structure.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Indo Thai Sec. at 29.54%, while Indian Energy Ex has the lowest at -38.63%. CARE Ratings' own 1-year return of -16.00% is better than Indian Energy Ex but worse than Indo Thai Sec. Additionally, the six-month returns are negative for Indian Energy Ex, ICRA, Indo Thai Sec., and Share India Sec.

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. As of March 2026, it reported net sales of ₹131 Cr and a net profit of ₹53 Cr, with a market cap of ₹4,916 Cr.

Overview: <BR>CARE Ratings Ltd is a leading credit rating agency in India, operating within the capital markets industry and classified as a small-cap company.<BR><BR>History: <BR>CARE Ratings Limited was incorporated as Credit Analysis & Research Limited (CARE) in 1993 and changed its name to CARE Ratings Limited on February 22, 2017. The most recent quarterly results reported net sales and net profit for March 2026.<BR><BR>Financial Snapshot: <BR>Net Sales: 131 Cr (Quarterly Results - Mar 2026) <BR>Net Profit: 53 Cr (Quarterly Results - Mar 2026) <BR>Market Cap: INR 4,916 Cr (Small Cap)<BR><BR>Key Metrics: <BR>P/E: 29.00 <BR>Industry P/E: 32 <BR>Dividend Yield: 0.49% <BR>Debt-Equity: -0.13 <BR>Return on Equity: 18.36% <BR>Price to Book: 5.25<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

Are CARE Ratings Ltd latest results good or bad?

CARE Ratings Ltd's latest results show strong growth with a 47.16% increase in net profit and a 19.17% rise in revenue, but concerns about earnings volatility and high valuation suggest caution for investors. While existing shareholders may hold, new investors should be wary of the company's inconsistent profitability.

CARE Ratings Ltd's latest results present a mixed picture. On one hand, the company reported a net profit of ₹52.83 crores for Q4 FY26, which is a significant increase of 47.16% quarter-on-quarter and 23.98% year-on-year. Additionally, revenue grew by 19.17% year-on-year, reaching ₹130.67 crores, indicating strong business momentum. The operating margin also expanded to 46.50%, up from 35.98% in the previous quarter, showcasing improved profitability.<BR><BR>However, there are notable concerns regarding the company's earnings volatility. The profits have shown sharp swings over recent quarters, with a troubling decline of 36.65% in Q3 FY26 followed by the recovery in Q4. This pattern raises questions about the sustainability of growth and profitability. The return on equity (ROE) stands at 17.73%, which, while improved, remains below industry standards for capital-light financial services.<BR><BR>Overall, while the latest results show positive growth and margin expansion, the underlying volatility in earnings and the challenges in maintaining consistent profitability suggest that investors should approach with caution. The stock's current valuation appears high relative to its growth prospects, making it less attractive for new investors at this time. Existing shareholders may consider holding but should remain vigilant about future earnings trends.

When is the next results date for CARE Ratings Ltd?

The next results date for CARE Ratings Ltd is 13 May 2026.

The next results date for CARE Ratings Ltd is scheduled for 13 May 2026.

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.

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.

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.

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.

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.