CARE Ratings

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.

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.

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.

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.

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.

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.

Should I buy, sell or hold CARE Ratings Ltd?

Why is CARE Ratings Ltd falling/rising?

As of 24-May, the stock price of CARE Ratings Ltd is rising to 1,727.95, driven by strong financial performance and positive growth indicators. However, recent declines in stock performance and reduced investor participation suggest caution despite the overall positive outlook.

As of 24-May, the stock price of CARE Ratings Ltd is rising, currently at 1,727.95, reflecting a change of 13.3 (0.78%) upwards. This increase can be attributed to several positive factors surrounding the company's performance. Notably, CARE Ratings has been net-debt free and has reported positive results for the last 11 consecutive quarters, with a significant growth in profit after tax (PAT) of 24.81% for the nine-month period, amounting to Rs 145.40 crore. Additionally, the return on capital employed (ROCE) is at a high of 24.81%, and the profit before tax (PBT) has also shown a robust growth of 28.77%.<BR><BR>Moreover, the stock has demonstrated consistent returns over the past three years, outperforming the BSE500 index in each of the last three annual periods. The high institutional holdings at 54.63% suggest strong confidence from larger investors, who typically have more resources to analyze the fundamentals of the company.<BR><BR>However, it is important to note that despite the current rise, the stock has experienced a decline of 4.07% over the past week and has been losing for the last three days, with a total drop of 2.51% in that period. Additionally, there has been a significant decrease in investor participation, with delivery volume falling by 81.02% against the five-day average. This indicates some volatility and caution among investors, despite the positive financial indicators. <BR><BR>In summary, while CARE Ratings Ltd is currently experiencing a rise in stock price, it is essential to consider the mixed signals from recent performance trends and investor activity.

Which are the latest news on CARE Ratings?