CARE Ratings

Why is CARE Ratings Ltd falling/rising?

As of 31-Aug, CARE Ratings Ltd's stock price has risen to Rs 1,728.55, reflecting a 2.77% increase. This growth is driven by strong performance relative to the Sensex, impressive long-term returns, and positive financial results, indicating a bullish trend and confidence from institutional investors.

As of 31-Aug, CARE Ratings Ltd is experiencing a rise in its stock price, currently at Rs 1,728.55, which reflects an increase of Rs 46.65 or 2.77%. This upward movement can be attributed to several key factors. <BR><BR>Firstly, the stock has shown strong performance relative to the benchmark Sensex, with a 6.36% increase over the past week, while the Sensex has decreased by 0.53%. Over the past year, CARE Ratings has generated a return of 10.55%, significantly outperforming the Sensex, which has declined by 3.57% during the same period. Additionally, the stock has demonstrated impressive long-term growth, with a 107.53% increase over the past three years and a 155.17% increase over the past five years.<BR><BR>Today's performance indicates that the stock has outperformed its sector by 0.98% and has been on a consecutive gain streak for the last two days, accumulating a total return of 5.95% in this short period. The stock also reached an intraday high of Rs 1,768.7, reflecting a 5.16% increase at that point.<BR><BR>Moreover, CARE Ratings is trading above its moving averages across various time frames, indicating a strong bullish trend. The company is net-debt free and has reported positive results for the last 12 consecutive quarters, with operating cash flow at its highest and a significant growth in profit after tax. High institutional holdings at 54.99% further suggest confidence from larger investors, who typically have more resources to analyze company fundamentals.<BR><BR>In summary, the combination of strong recent performance, positive financial results, and favorable market conditions has contributed to the rising stock price of CARE Ratings Ltd.

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 governance and strategic direction for the company.

The management team of CARE Ratings includes the following key individuals:<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 experience to the company, contributing to its governance and strategic direction.

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 June 2026, it reported net sales of 112 Cr and a net profit of 32 Cr, with a market cap of INR 5,205 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) on April 21, 1993, and changed its name to CARE Ratings Limited on February 22, 2017. The latest quarterly results reported net sales and net profit for June 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 112 Cr (Quarterly Results - Jun 2026) <BR>Most recent Net Profit: 32 Cr (Quarterly Results - Jun 2026) <BR>Market-cap value: INR 5,205 Cr (Small Cap)<BR><BR>Key Metrics: <BR>P/E: 29.00 <BR>Industry P/E: 35 <BR>Dividend Yield: 1.30% <BR>Debt-Equity: -0.13 <BR>Return on Equity: 18.36% <BR>Price to Book: 5.44<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?

CARE Ratings' peers include Prudent Corp, UTI AMC, Indian Energy Ex, IIFL Capital, ICRA, Share India Sec., and Monarch Networth. Prudent Corp leads in 1-year returns at 30.08%, while CARE Ratings has a return of 10.55%, and UTI AMC has the lowest at -32.36%.

Peers: The peers of CARE Ratings are Prudent Corp, UTI AMC, Indian Energy Ex, IIFL Capital, ICRA, Share India Sec., and Monarch Networth.<BR><BR>Quality Snapshot: Excellent management risk is observed at Prudent Corp and Indian Energy Ex, while Good management risk is found at UTI AMC, IIFL Capital, CARE Ratings, and ICRA. Average management risk is present at Share India Sec. and Monarch Networth. Growth is rated as Good for Prudent Corp, IIFL Capital, and Share India Sec., while Below Average growth is noted for UTI AMC, Indian Energy Ex, CARE Ratings, ICRA, and the rest. Excellent capital structure is seen across all peers.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Prudent Corp at 30.08%, while UTI AMC has the lowest at -32.36%. CARE Ratings has a 1-year return of 10.55%, which is significantly higher than UTI AMC but lower than Prudent Corp. Additionally, UTI AMC, Indian Energy Ex, and ICRA have negative six-month returns.

How big is CARE Ratings?

As of 31st August, CARE Ratings Ltd has a market capitalization of 5,205.00 Cr, with recent net sales of 490.84 Cr and a net profit of 177.66 Cr. Shareholder's funds are valued at 932.45 Cr, and total assets amount to 1,104.57 Cr.

As of 31st August, CARE Ratings Ltd has a market capitalization of 5,205.00 Cr, classifying it as a Small Cap company.<BR><BR>In the latest 4 quarters, the company reported Net Sales of 490.84 Cr and a Net Profit of 177.66 Cr.<BR><BR>For the latest annual period ending in March 2026, Shareholder's Funds were valued at 932.45 Cr, while Total Assets amounted to 1,104.57 Cr.

Which are the latest news on CARE Ratings?

Should I buy, sell or hold CARE Ratings Ltd?

When is the next results date for CARE Ratings Ltd?

The next results date for CARE Ratings Ltd is 07 August 2026.

The next results date for CARE Ratings Ltd is scheduled for 07 August 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.

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.