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 11 February 2026.

The next results date for CARE Ratings Ltd is scheduled for 11 February 2026.

Are CARE Ratings Ltd latest results good or bad?

CARE Ratings Ltd's latest results show strong year-on-year growth with a net profit increase of 29.14% and a 16.33% rise in net sales. However, there are significant quarter-on-quarter declines in both net profit and sales, reflecting the volatility typical of the rating agency business model.

The latest results for CARE Ratings Ltd present a mixed picture. On one hand, the company reported a consolidated net profit of ₹35.90 crores for Q3 FY26, which reflects a strong year-on-year growth of 29.14%. This indicates improved operational performance and profitability compared to the same quarter last year. Additionally, net sales increased by 16.33% year-on-year to ₹112.12 crores, suggesting healthy demand for their rating services.<BR><BR>However, when looking at the quarter-on-quarter performance, there are significant declines. Net profit fell by 36.65% from the previous quarter, and net sales dropped by 17.78%. This volatility is characteristic of the rating agency business model, where revenue can fluctuate significantly based on large mandates and project completions.<BR><BR>Operating margins also saw a decline, compressing by 1,418 basis points sequentially to 35.98%, although they improved by 439 basis points year-on-year. The PAT margin increased to 32.59% from 29.44% in the same quarter last year, which is a positive sign.<BR><BR>In summary, while the year-on-year growth figures are encouraging, the sequential declines highlight the inherent volatility in CARE Ratings' business. This duality makes it difficult to classify the results as strictly good or bad, as they reflect both strong annual performance and significant quarterly fluctuations.

Should I buy, sell or hold CARE Ratings Ltd?

Why is CARE Ratings Ltd falling/rising?

As of 17-Mar, CARE Ratings Ltd's stock price is declining, down -6.3 or -0.4%, and has underperformed recently, losing -4.79% over three days. Despite a strong long-term performance with a 42.00% increase over the past year, concerns about valuation and growth persist.

As of 17-Mar, CARE Ratings Ltd's stock price is currently falling, evidenced by a change of -6.3, or -0.4%. The stock has been underperforming in the short term, having lost -4.79% over the last three days and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, the stock has shown a decline of -3.85% over the past week and -5.81% over the past month, while the broader market, represented by the Sensex, has also seen a decrease of -2.73% and -8.84%, respectively.<BR><BR>Despite the recent price drop, the company has demonstrated strong long-term performance, with a 42.00% increase in stock value over the past year and a remarkable 254.99% rise over the last five years. However, concerns about its long-term growth persist, as net sales have only grown at an annual rate of 14.00% and operating profit at 18.68% over the last five years. The stock is also considered expensive, trading at a premium compared to its peers, with a Price to Book Value of 5.4.<BR><BR>Investor participation has increased, with a 21.41% rise in delivery volume, indicating some interest despite the falling price. Nonetheless, the combination of recent price declines, underperformance against sector benchmarks, and concerns about valuation and growth prospects contribute to the current downward trend in CARE Ratings Ltd's stock price.

Why is CARE Ratings Ltd falling/rising?

As of 18-Mar, CARE Ratings Ltd's stock price is rising to 1,565.15 after a trend reversal, but it has shown negative performance over the past week and month. Long-term performance remains strong with a 42.81% increase over the past year, though short-term indicators suggest potential weakness and declining investor participation.

As of 18-Mar, CARE Ratings Ltd's stock price is rising, currently at 1,565.15, reflecting a change of 11.1 (0.71%) upward. This increase comes after a trend reversal, as the stock has gained after three consecutive days of decline. Additionally, the stock reached an intraday high of Rs 1,590.2, marking a 2.33% increase during the trading day.<BR><BR>Despite the recent rise, the stock has shown a negative performance over the past week and month, with declines of 2.58% and 4.67%, respectively. However, the long-term performance remains strong, with a notable 42.81% increase over the past year and a remarkable 137.29% rise over the last three years. This long-term performance has outpaced the benchmark Sensex, which has only increased by 1.86% in the past year.<BR><BR>The company has consistently reported positive results for the last ten consecutive quarters, showcasing strong financial health with a high return on capital employed (ROCE) of 24.14% and significant cash reserves of Rs 286.60 crore. Furthermore, high institutional holdings at 54.3% suggest confidence from larger investors who are typically more adept at analyzing company fundamentals.<BR><BR>However, it is important to note that the stock is currently trading below its moving averages, indicating a potential weakness in the short term. Additionally, there has been a decline in investor participation, with delivery volume falling by 16.75% against the five-day average. This could suggest caution among investors despite the recent price increase.<BR><BR>In summary, while CARE Ratings Ltd is experiencing a rise in stock price due to a trend reversal and strong long-term performance, there are underlying concerns regarding short-term trading patterns and declining investor participation.

Why is CARE Ratings Ltd falling/rising?

As of 19-Mar, CARE Ratings Ltd's stock price is at 1,555.05, down 0.39%. The stock has shown strong long-term growth but is currently facing a decline due to underperformance against moving averages and concerns about its long-term growth potential.

As of 19-Mar, CARE Ratings Ltd's stock price is currently at 1,555.05, reflecting a decrease of 6.05 points or 0.39%. The stock has experienced a decline of 4.90% over the past week and 4.51% over the past month, indicating a negative trend in the short term. Despite this, the stock has shown strong performance over the longer term, with a significant increase of 37.49% over the last year and an impressive 135.76% rise over the past three years.<BR><BR>Today's performance indicates that while the stock is underperforming relative to its moving averages, it has outperformed its sector by 0.35%. Additionally, there has been a notable increase in investor participation, with delivery volume rising by 138.37% compared to the five-day average, suggesting growing interest among investors.<BR><BR>However, there are concerns regarding the company's long-term growth potential. Although CARE Ratings has declared positive results for the last ten consecutive quarters and maintains a low debt-to-equity ratio, the growth in net sales and operating profit has been relatively modest at annual rates of 14.00% and 18.68%, respectively, over the last five years. Furthermore, the stock is considered expensive with a price-to-book value of 5.4, which is above the average historical valuations of its peers.<BR><BR>In summary, while CARE Ratings Ltd has demonstrated strong performance in the short and long term, the recent decline in stock price can be attributed to its underperformance against moving averages and concerns about its long-term growth prospects despite solid recent results.

Why is CARE Ratings Ltd falling/rising?

As of 20-Mar, CARE Ratings Ltd's stock price is declining, currently at 1,535.30, reflecting a 1.27% decrease and underperformance against its sector. The stock is trading below key moving averages, indicating a bearish trend, while reduced investor participation and high valuation metrics suggest ongoing downward pressure.

As of 20-Mar, CARE Ratings Ltd's stock price is falling, currently at 1,535.30, which reflects a decrease of 19.75 (-1.27%). The stock has underperformed its sector by 1.47% today and has been on a consecutive decline for the last two days, resulting in a total drop of 1.65% during this period. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.<BR><BR>Investor participation has also decreased, with the delivery volume on 19 March falling by 8.57% compared to the 5-day average. This decline in trading activity suggests reduced interest among investors. Despite the company having a low debt-to-equity ratio and positive financial results over the last ten quarters, the stock's performance has been negatively impacted by poor long-term growth metrics, such as net sales and operating profit growth rates of 14.00% and 18.68%, respectively, over the past five years. <BR><BR>Moreover, the stock is considered expensive with a price-to-book value of 5.3, which is higher than its peers' average historical valuations. Although the company has shown a return of 35.12% over the past year, its profits have only increased by 35.6%, leading to a PEG ratio of 0.8, which may indicate that the stock is overvalued relative to its growth prospects. These factors combined contribute to the downward pressure on CARE Ratings Ltd's stock price.

Why is CARE Ratings Ltd falling/rising?

As of 23-Mar, CARE Ratings Ltd's stock price is declining, currently at 1,430.00, down 7.1% and underperforming the sector. The stock has shown high volatility and is trading below key moving averages, indicating a bearish trend amid concerns over long-term growth prospects.

As of 23-Mar, CARE Ratings Ltd is experiencing a decline in its stock price, currently at 1,430.00, which reflects a change of -109.3 or -7.1%. The stock has been underperforming, having fallen consecutively for the last three days, resulting in a total decline of -8.4% during this period. Additionally, the stock's performance today has underperformed the sector by -5.94%.<BR><BR>The stock has shown high volatility, with an intraday volatility of 5.59%, and it touched a low of Rs 1393.95, which is a decrease of -9.44%. Furthermore, CARE Ratings is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.<BR><BR>In terms of broader performance, the stock has declined -9.66% over the past month and -10.67% year-to-date, while the benchmark Sensex has also seen a decline but at a lesser rate. Despite positive factors such as a low debt-to-equity ratio, consistent positive results over the last ten quarters, and high institutional holdings, the stock's long-term growth appears poor, with net sales growing at an annual rate of only 14.00% over the last five years. This has contributed to a perception of the stock being overvalued, as indicated by its high price-to-book value ratio compared to peers.<BR><BR>Overall, the combination of recent price declines, high volatility, and concerns over long-term growth prospects are contributing to the downward pressure on CARE Ratings Ltd's stock price.

Why is CARE Ratings Ltd falling/rising?

As of 24-Mar, CARE Ratings Ltd's stock price has risen to 1,463.75, reflecting a 3.62% increase after a trend reversal. This rise is supported by strong financial performance, increased investor participation, and relative outperformance in its sector, despite trading below moving averages.

As of 24-Mar, CARE Ratings Ltd is experiencing a rise in its stock price, currently at 1,463.75, which reflects an increase of 51.2 points or 3.62%. This upward movement follows a trend reversal after three consecutive days of decline. The stock opened with a gain of 3.64% today and reached an intraday high of Rs 1466.75, indicating positive momentum.<BR><BR>Several factors contribute to this rise. Notably, the stock has outperformed its sector by 4.08% today, suggesting strong relative performance. Additionally, there has been a significant increase in investor participation, with delivery volume rising by 29.68% compared to the five-day average. This indicates growing interest and confidence among investors.<BR><BR>Moreover, CARE Ratings has demonstrated solid financial performance, having declared positive results for the last ten consecutive quarters. The company boasts a high return on capital employed (ROCE) of 24.14% and substantial cash reserves of Rs 286.60 crore, which enhances its financial stability. Furthermore, the stock has shown impressive long-term performance, generating a return of 27.06% over the past year and outperforming the BSE500 index over various time frames.<BR><BR>Despite these positive indicators, it is important to note that the stock is currently trading below its moving averages, which could suggest underlying concerns. However, the combination of strong recent performance, increased investor interest, and solid financial results appears to be driving the stock's rise at this time.

Why is CARE Ratings Ltd falling/rising?

As of 25-Mar, CARE Ratings Ltd's stock price is rising to 1,522.60, up 4.46%. The increase is supported by strong performance metrics and institutional confidence, despite recent short-term declines.

As of 25-Mar, CARE Ratings Ltd's stock price is rising, currently at 1,522.60, reflecting an increase of 65.0 points or 4.46%. This upward movement is supported by a performance today that has outperformed its sector by 3.28%, and the stock has been gaining for the last two days, accumulating a total return of 7.79% during this period. Additionally, the stock reached an intraday high of Rs 1570.75, marking a rise of 7.76%.<BR><BR>Despite the recent gains, it is important to note that the stock has experienced declines over the past week and month, with returns of -2.47% and -5.58%, respectively. However, its long-term performance remains strong, having generated a return of 34.83% over the past year and significantly outperforming the BSE500 index over various time frames, including the last three years.<BR><BR>Positive factors contributing to the stock's rise include the company's consistent positive results over the last ten quarters, a high return on capital employed (ROCE) of 24.14%, and substantial cash reserves of Rs 286.60 crore. Furthermore, the company enjoys high institutional holdings at 54.3%, indicating confidence from larger investors who typically have better analytical resources.<BR><BR>In summary, while CARE Ratings Ltd has faced some short-term challenges, its recent price increase is driven by strong performance metrics, positive financial results, and favorable institutional support.

Which are the latest news on CARE Ratings?