CARE Ratings Ltd logo

CARE Ratings Ltd

CARERATING NSE

Key Fundamentals

MicrocapRating ServicesFinancial Services
Market Cap
₹5,105 Cr
Volatility
Moderate
P/E Ratio
29.26
EBITDA
₹252 Cr
Return on Equity
18.42%
Debt to Equity
0.03
Book Value
₹309.82
EPS
₹34.6
52W High
₹1,838
52W Low
₹1,392.7

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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37 extracted metrics + investor summaries across FY13–FY26.

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Tapetide Score

Data-driven rating, 0–100. How it works →

Technical Indicators

Key Insights

Strengths

2
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 43.8%

Growth Rate

Revenue Growth
16.51% ↗
Net Income Growth
24.07% ↗
Cash Flow Change
20.02% ↗
ROE
7.28% ↗
ROCE
6.64% ↗
EBITDA Margin (Avg.)
5.03% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 18d ago
AI opinion · based on fundamentals
Risk medium

CARE Ratings Ltd is India's second-largest credit rating agency with approximately 29% market share, trading at a market cap of ₹5,152 crore and a PE of 29.6x. The company is virtually debt-free with a 3-year profit CAGR of 27% and ROE of 20%, though it trades at a premium valuation of 5.5x book value with no identified promoter holding.

Bull Case 8
  • Debt-free balance sheet provides financial resilience with negligible leverage, eliminating interest cost drag on profitability
  • Strong 3-year compounded profit growth of 27% demonstrates sustained earnings momentum well above its 10-year CAGR of 4%
  • ROE of 20% in the last year (18% 3-year average) indicates efficient capital deployment in an asset-light business model
  • Revenue growth of 18% TTM and 19% over 3 years shows consistent top-line expansion driven by India's growing credit market
  • Healthy dividend payout of 43.8% with a current yield of 1.29% offers tangible cash returns to shareholders
  • PE of 29.6x trades at a significant discount to market leader CRISIL at approximately 37x, despite similar business characteristics
  • Oligopolistic industry structure with only 6-7 SEBI-registered rating agencies creates high barriers to entry and pricing power
  • FY25 consolidated revenue reached approximately ₹402 crore, up 21% year-on-year, reflecting strong demand for credit ratings amid rising bond issuances
Bear Case 8
  • No identifiable promoter holding (0%) leaves the company without a strategic anchor investor, potentially increasing vulnerability to activist or hostile actions
  • Price-to-book ratio of 5.51x is elevated for a financial services firm, limiting margin of safety if growth decelerates
  • 10-year compounded sales CAGR of only 5% and profit CAGR of 4% indicate that recent strong growth may be cyclical rather than structural
  • Stock CAGR of just 1% over the past 1 year and 5% over 10 years suggests extended periods of poor price performance despite business growth
  • Distant second to CRISIL which commands approximately 65% market share, limiting pricing power and ability to win mandates from top-tier corporates
  • FII holding at around 23-24% means significant foreign ownership that can create selling pressure during emerging market risk-off events
  • Credit rating is a cyclical business tied to debt issuance volumes; any slowdown in India's capex cycle or bond market could compress revenues
  • Retail and public shareholders hold approximately 45% of shares, creating potential overhang from fragmented ownership with no committed long-term anchor

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 16d ago
Positives 1
  • Strong dividend payout confirmed Jul 3

    CARE Ratings approved total dividend of ₹22 per share (₹8 interim + ₹14 final) at its 33rd AGM on July 3, 2026, signaling healthy cash generation and shareholder returns.

TL;DR: CARE Ratings is returning meaningful capital to shareholders with a ₹22/share total dividend, reflecting solid profitability in the credit rating business. No headwinds or risks surfaced in the current news cycle. The dividend approval suggests management confidence in sustained earnings, though limited news flow makes it difficult to assess broader trend direction.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
66
96
79
90
79
117
96
110
94
136
112
131
112
Expenses
49
55
55
61
57
62
66
62
66
68
72
70
77
Operating Profit
18
42
23
29
22
56
30
47
28
68
40
61
35
OPM %
27%
43%
30%
32%
28%
47%
32%
43%
30%
50%
36%
46%
31%
Other Income
12
11
14
10
12
12
12
15
14
13
13
16
15
Interest
0
0
0
0
0
0
1
1
1
1
1
1
1
Depreciation
3
3
3
3
3
3
3
3
3
3
4
4
4
PBT
26
50
34
36
30
64
39
59
37
77
49
72
45
Tax %
31%
29%
30%
32%
30%
27%
27%
26%
29%
26%
25%
26%
27%
Net Profit
18
36
24
25
21
47
28
43
26
57
37
53
33
EPS in Rs
5.99
11.81
7.88
8.07
6.94
15.41
9.29
14.24
8.61
18.89
11.96
17.58
10.73
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
261
279
287
333
319
244
248
248
279
332
402
473
491
Expenses
101
105
105
122
144
162
153
168
180
220
247
276
287
Operating Profit
160
174
182
211
175
81
96
80
99
112
155
197
204
OPM %
61%
62%
63%
63%
55%
33%
39%
32%
36%
34%
39%
42%
42%
Other Income
44
9
34
25
30
31
31
27
38
47
51
55
56
Interest
1
0
0
0
0
1
1
0
1
2
2
2
2
Depreciation
5
4
3
3
3
8
8
8
11
10
12
14
15
PBT
197
178
212
233
202
104
119
99
126
147
192
235
243
Tax %
30%
33%
31%
30%
32%
20%
23%
22%
32%
30%
27%
26%
—
Net Profit
138
120
148
162
138
83
91
77
85
103
140
174
180
EPS in Rs
47.53
40.68
50.13
55.13
46.66
27.96
30.39
25.34
28.12
33.67
45.85
56.97
59.16
Div. Payout %
166%
69%
56%
100%
64%
70%
56%
67%
89%
53%
39%
39%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
29
29
29
29
29
29
29
30
30
30
30
30
Reserves
330
379
491
567
521
504
559
618
643
687
776
902
Borrowings
0
0
0
0
0
0
7
9
17
20
24
26
Other Liabilities
87
94
64
61
64
85
74
69
80
105
128
146
Total Liabilities
446
502
584
658
614
618
671
725
770
842
958
1,105
Fixed Assets
65
64
61
60
83
93
85
96
107
109
119
122
CWIP
0
0
0
0
0
1
3
8
4
6
3
5
Investments
335
381
466
518
439
339
240
44
44
44
134
87
Other Assets
46
58
57
79
93
185
343
577
614
683
702
890
Total Assets
446
502
584
658
614
618
671
725
770
842
958
1,105
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
107
106
119
134
109
67
86
68
82
91
123
148
Investing
157
-41
-22
-25
83
27
-38
-27
13
-39
-58
-94
Financing
-276
-66
-96
-99
-195
-107
-43
-35
-63
-63
-54
-59
Net Cash Flow
-12
-1
1
11
-4
-13
5
6
32
-11
11
-6
Free Cash Flow
96
104
118
131
82
63
82
49
71
82
108
140
CFO/OP
104
95
101
95
98
125
114
122
115
119
112
107
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
22
31
32
43
54
61
31
25
27
25
29
27
Cash Conversion Cycle
22
31
32
43
54
61
31
25
27
25
29
27
Working Capital Days
-82
-65
-10
-1
13
14
-3
635
638
591
451
316
ROCE %
39%
46%
44%
41%
35%
19%
21%
16%
19%
21%
25%
26%

Shareholding Pattern

As of Jun 2026
DIIs 31.58%
Public 24.75%
FIIs 23.41%
Others 20.26%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
20.90%
0.00%
22.91%
23.37%
24.80%
24.75%
23.74%
24.62%
23.61%
23.00%
23.25%
23.41%
DIIs
5.76%
7.16%
7.14%
5.36%
3.73%
10.59%
24.88%
25.06%
23.80%
19.10%
23.73%
21.65%
26.89%
26.15%
25.28%
27.51%
29.38%
29.76%
31.60%
31.30%
31.39%
31.58%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
33.70%
34.18%
37.13%
37.70%
35.10%
36.08%
34.74%
34.49%
33.63%
33.86%
32.95%
29.86%
27.95%
28.00%
27.64%
26.16%
25.48%
25.04%
24.78%
25.33%
24.94%
24.75%
Others
60.54%
58.66%
55.73%
56.94%
61.17%
53.33%
40.38%
40.45%
42.57%
47.04%
22.43%
48.48%
22.26%
22.48%
22.28%
21.58%
21.39%
20.59%
20.01%
20.36%
20.43%
20.26%
No. of Shareholders
70,117
68,791
72,658
71,893
69,186
71,423
69,196
64,901
61,050
59,504
55,721
54,539
52,468
53,140
53,602
52,007
51,395
61,111
56,931
59,139
58,978
58,466

Documents

1
Concall - May 2017 May 2017
2
Concall - Aug 2017 Aug 2017
3
Concall - Nov 2017 Nov 2017
4
Concall - Jan 2018 Jan 2018
5
Concall - Jan 2018 Jan 2018

Frequently Asked Questions about CARE Ratings Ltd

What does CARE Ratings Ltd do?
CARE Ratings is a leading credit rating agency of India. The Company provides various credit ratings that helps corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own riskreturn expectatio...
Where is CARE Ratings Ltd (CARERATING) listed?
CARE Ratings Ltd is listed on the Indian stock exchanges. It is listed on NSE: CARERATING and BSE: 534804. You can view its live share price, financials, and ratios on Tapetide.
Which sector does CARE Ratings Ltd belong to?
CARE Ratings Ltd operates in the Financial Services sector within the Rating Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of CARE Ratings Ltd?
CARE Ratings Ltd has a market capitalisation of approximately ₹5104.75 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of CARE Ratings Ltd?
The Price-to-Earnings (PE) ratio of CARE Ratings Ltd is 29.26. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of CARE Ratings Ltd?
Over the past 52 weeks, CARE Ratings Ltd has traded between a low of ₹1,392.7 and a high of ₹1,838. This range helps investors understand the stock's price volatility and recent trading levels.
Does CARE Ratings Ltd pay dividends?
Yes, CARE Ratings Ltd has a dividend yield of 1.29%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of CARE Ratings Ltd?
CARE Ratings Ltd has a Return on Equity (ROE) of 18.42%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research CARE Ratings Ltd on Tapetide?
On Tapetide, you can view CARE Ratings Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

CARE Ratings is a leading credit rating agency of India. The Company provides various credit ratings that helps corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own riskreturn expectations.(Source : 202003-01 Annual Report Page No:134)

Website careratings.com
CEO Mr. Mehul Harshadray Pandya
Employees 598
Listed 2012-12-26
Face Value ₹ 10
Issued Size 3,00,25,029

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