CARE Ratings Ltd (CARERATING) AI Stock Analysis

• Market Cap: ₹46.70B
• Dividend Yield: 1.16%
• Average Volume (3M): 5.47K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.55
• Revenue Growth: 21.24%
• EPS Growth: 36.98%
• Country: IN
• Employees: 563
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 8.61
• Shares Outstanding: 29,994,980
• 10 Day Avg. Volume: 1,264
• 30 Day Avg. Volume: 5,472
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,720.00
• Price Target Upside: 10.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ₹1,720.00 ▲(10.48% Upside)

CARE Ratings Ltd's strong financial performance is the primary driver of its stock score, supported by robust profitability and a stable balance sheet. However, the technical analysis indicates a bearish trend, and the valuation suggests the stock is relatively expensive, which tempers the overall score.

CARE Ratings Ltd Business Overview & Revenue Model

Company Description

CARE Ratings Limited, a credit rating agency, provides various rating and grading services in India, Mauritius, and Nepal. The company provides rating services for debt instruments, such as bonds, debentures, hybrid instruments, preference shares, fixed deposits, commercial papers and short-term debt programs, and certificate of deposits; and bank loan; financial sector rating services, which cover banks, non-banking finance companies, housing finance companies, financial institutions, etc.; structured finance ratings; insurance ratings; infrastructure sector ratings; and public finance rating services that cover ratings of state government entities and urban infrastructure projects, as well as corporate governance ratings, project finance, and MLD valuation services. It offers corporate advisory, project evaluation and monitoring, credit analytics, industry and company research, and due diligence and grading services, as well as research and analytics to corporates, financial institutions, banks, and institutional investors. It was formerly known as Credit Analysis and Research Limited and changed its name to CARE Ratings Limited in June 2017. CARE Ratings Limited was incorporated in 1993 and is headquartered in Mumbai, India.

How the Company Makes Money

CARE Ratings Ltd generates revenue primarily through fees charged for its credit rating services. These services are availed by corporations, financial institutions, and government bodies seeking to issue debt instruments like bonds or obtain loans. The company earns fees based on the complexity, size, and type of the financial instrument being rated. Besides credit ratings, CARE Ratings also offers industry research and risk management advisory services, which contribute to its revenue. Strategic partnerships with financial institutions and regulatory bodies further enhance its service offerings and market reach, thereby contributing to its financial performance.

CARE Ratings Ltd Financial Statement Overview

Summary

CARE Ratings Ltd exhibits strong financial health with robust profitability and a stable balance sheet. The company demonstrates efficient cash flow management, though opportunities for further cash flow improvements exist. These factors collectively position the company well for future growth.

Income Statement

CARE Ratings Ltd has shown a strong revenue growth trajectory with a notable increase from 2024 to 2025, enhancing its gross profit and net profit margins. The company maintains impressive EBIT and EBITDA margins, indicating efficient cost management and robust profitability.

Balance Sheet

The balance sheet reflects financial stability, with a low debt-to-equity ratio and a strong equity position. The return on equity is commendable, showing effective use of equity to generate profits. A high equity ratio further demonstrates the company's solid financial foundation.

Cash Flow

CARE Ratings Ltd displays healthy cash flow management, with a significant increase in free cash flow. The operating cash flow to net income ratio indicates efficient conversion of income into cash, although the free cash flow growth rate suggests potential for further improvement.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.02B	4.02B	2.79B	3.32B	2.47B	2.39B
Gross Profit	2.13B	2.13B	1.45B	1.82B	1.35B	1.18B
EBITDA	1.91B	1.55B	1.37B	1.59B	1.07B	1.27B
Net Income	1.37B	1.37B	835.29M	1.01B	751.08M	895.16M
Balance Sheet
Total Assets	9.58B	9.58B	7.70B	8.42B	7.27B	6.72B
Cash, Cash Equivalents and Short-Term Investments	6.47B	6.47B	5.65B	6.23B	5.22B	4.86B
Total Debt	237.69M	237.69M	174.78M	195.54M	89.13M	72.26M
Total Liabilities	1.42B	1.42B	905.77M	1.17B	745.98M	787.34M
Stockholders Equity	8.06B	8.06B	6.72B	7.17B	6.47B	5.89B
Cash Flow
Free Cash Flow	0.00	1.08B	707.36M	817.10M	490.20M	816.84M
Operating Cash Flow	0.00	1.23B	822.42M	908.82M	680.03M	861.74M
Investing Cash Flow	0.00	-584.28M	128.80M	-390.66M	-273.18M	-377.19M
Financing Cash Flow	0.00	-539.96M	-633.31M	-629.55M	-351.38M	-433.64M

CARE Ratings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1556.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CARERATING, the sentiment is Negative. The current price of 1556.9 is below the 20-day moving average (MA) of 1587.31, below the 50-day MA of 1641.64, and above the 200-day MA of 1456.55, indicating a neutral trend. The MACD of -20.22 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 21.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CARERATING.

CARE Ratings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICRA	75 Outperform	₹62.31B	35.10	16.14%	0.93%	10.80%	21.15%
CRISIL	67 Neutral	₹338.99B	46.58	26.67%	1.25%	6.03%	11.92%
CARERATING	66 Neutral	₹46.70B	32.74	―	1.16%	21.24%	36.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

CARE Ratings Ltd Corporate Events

CARE Ratings Transfers Equity Shares to Investor Protection Fund

CARE Ratings Limited has announced the transfer of equity shares to the Investor Education and Protection Fund Authority, as required by the Companies Act, 2013. This move, communicated through newspaper advertisements and letters to shareholders, reflects the company’s compliance with regulatory obligations, potentially impacting shareholder dynamics and reinforcing its commitment to governance standards.

CARE Ratings Expands Share Capital with Employee Stock Option Allotment

CARE Ratings Limited has announced the allotment of 16,066 equity shares to its employees under the CARE Employee Stock Option Scheme 2020, following approval by the Nomination and Remuneration Committee. This allotment will increase the company’s paid-up share capital, reflecting its commitment to employee engagement and retention through stock-based incentives.