CARE Ratings Ltd (CARERATING) AI Stock Analysis

• Market Cap: ₹48.10B
• Dividend Yield: 1.12%
• Average Volume (3M): 1.49K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.51
• 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: 30,007,080
• 10 Day Avg. Volume: 1,206
• 30 Day Avg. Volume: 1,489
• PEG Ratio: 0.68
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 8.36
• P/FCF Ratio: 31.08
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5,016.84
• Revenue Forecast (FY): ₹349.14B

• Rating: 75 Outperform
• Price Target: ₹1,766.00 ▲(12.18% Upside)

CARE Ratings Ltd demonstrates strong financial performance with robust profitability and a stable balance sheet, which are the most significant factors contributing to the score. Technical analysis indicates short-term bullish momentum, although the valuation suggests the stock is fairly priced. The absence of earnings call data and corporate events does not impact the score.

CARE Ratings Ltd Business Overview & Revenue Model

Company Description

CARE Ratings Ltd (CARERATING) is a leading credit rating agency in India, providing a wide range of rating services across various sectors, including corporate, financial institutions, public finance, and structured finance. The company offers credit ratings, research, and risk assessment services, enabling stakeholders to make informed financial decisions. With a strong focus on enhancing the transparency and credibility of financial markets, CARERATING plays a pivotal role in assessing the creditworthiness of issuers and their debt instruments.

How the Company Makes Money

CARE Ratings generates revenue primarily through its credit rating services, which include fees charged for conducting ratings, surveillance, and updates on rated entities. The company also earns income from research reports and advisory services offered to clients, which are essential for businesses seeking to understand market conditions and make strategic financial decisions. Additionally, CARERATING may have partnerships with financial institutions and government bodies that enhance its service offerings and client base, contributing to its overall earnings. The growth in corporate borrowing and the increasing need for transparent credit assessments in the evolving financial landscape further bolster the company's revenue streams.

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.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.17B	4.02B	3.32B	2.79B	2.47B	2.39B
Gross Profit	2.05B	1.98B	1.49B	1.45B	1.35B	1.18B
EBITDA	1.99B	1.55B	1.59B	1.37B	1.07B	1.27B
Net Income	1.42B	1.37B	1.01B	835.29M	751.08M	895.16M
Balance Sheet
Total Assets	0.00	9.58B	8.42B	7.70B	7.27B	6.72B
Cash, Cash Equivalents and Short-Term Investments	6.41B	6.47B	6.23B	5.65B	5.22B	4.94B
Total Debt	0.00	237.69M	195.54M	174.78M	89.13M	72.26M
Total Liabilities	-8.16B	1.42B	1.17B	905.77M	745.98M	787.34M
Stockholders Equity	8.16B	8.06B	7.17B	6.72B	6.47B	5.89B
Cash Flow
Free Cash Flow	1.09B	1.08B	817.10M	707.36M	490.20M	816.84M
Operating Cash Flow	1.15B	1.23B	908.82M	822.42M	680.03M	861.74M
Investing Cash Flow	-1.08B	-584.28M	-390.66M	128.80M	-273.18M	-377.19M
Financing Cash Flow	-246.39M	-539.96M	-629.55M	-633.31M	-351.38M	-433.64M

CARE Ratings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1574.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1574.3 is above the 20-day moving average (MA) of 1565.88, above the 50-day MA of 1568.18, and above the 200-day MA of 1484.12, indicating a bullish trend. The MACD of 12.68 indicates Negative momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CARERATING.

CARE Ratings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARERATING	75 Outperform	₹48.10B	33.71	―	1.12%	21.24%	36.98%
ICRA	72 Outperform	₹62.63B	33.20	―	0.96%	8.06%	24.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CRISIL	67 Neutral	₹345.45B	46.11	―	1.25%	6.61%	11.88%

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.