CARE Ratings Ltd (IN:CARERATING)
:CARERATING
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CARE Ratings Ltd
(CARERATING)
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Rating:78Outperform
Price Target:
₹2,054.00
▲(21.67% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial performance (high profitability, robust cash generation, and minimal leverage) and supportive technical momentum (above key moving averages with positive MACD). The main offset is valuation, with a very high P/E and only a modest dividend yield.
Positive Factors
Very low leverage
Debt-to-equity near 0.03 provides durable financial flexibility and downside protection. Low leverage reduces refinancing and interest-rate risks, enabling the firm to absorb cyclical downturns, support surveillance obligations, and allocate cash to strategic analytics or shareholder returns over the medium term.
Negative Factors
Margin volatility / compression
Sharp margin declines despite revenue growth signal potential structural cost pressures or adverse mix shifts. Persistent margin compression would erode cash flow, limit reinvestment and shareholder returns, and weaken the firm's long-term profitability resilience in rising-cost environments.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Debt-to-equity near 0.03 provides durable financial flexibility and downside protection. Low leverage reduces refinancing and interest-rate risks, enabling the firm to absorb cyclical downturns, support surveillance obligations, and allocate cash to strategic analytics or shareholder returns over the medium term.
Read all positive factors
CARE Ratings Ltd (CARERATING) vs. iShares MSCI India ETF (INDA)
Market Cap
₹51.92B
Dividend Yield1.23%
Average Volume (3M)1.86K
Price to Earnings (P/E)82.4
Beta (1Y)0.38
Revenue Growth17.59%
EPS Growth110.36%
CountryIN
Employees563
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)51.05
Shares Outstanding30,049,164
10 Day Avg. Volume3,452
30 Day Avg. Volume1,864
Financial Highlights & Ratios
PEG Ratio-1.34
Price to Book (P/B)15.13
Price to Sales (P/S)29.81
P/FCF Ratio57.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)65
Revenue Forecast (FY)₹5.39B
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,...
How the Company Makes Money
CARE Ratings primarily makes money by charging fees for rating and surveillance services. Its key revenue streams typically include: (1) Initial rating fees paid by an issuer/borrower (or an arranging entity) when CARE is engaged to assign a credi...
CARE Ratings Ltd Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.36B | 4.73B | 4.02B | 3.32B | 2.79B | 2.47B |
| Gross Profit | 2.47B | 1.83B | 2.29B | 1.49B | 1.55B | 1.35B |
| EBITDA | 2.27B | 1.97B | 2.06B | 1.59B | 1.37B | 1.07B |
| Net Income | 1.53B | 1.71B | 1.37B | 1.01B | 835.29M | 751.08M |
Balance Sheet | ||||||
| Total Assets | 10.37B | 11.05B | 9.58B | 8.42B | 7.70B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 6.49B | 1.50B | 6.41B | 6.26B | 5.65B | 5.21B |
| Total Debt | 254.25M | 261.84M | 237.69M | 195.54M | 174.78M | 89.13M |
| Total Liabilities | 1.65B | 1.62B | 1.42B | 1.17B | 905.77M | 745.98M |
| Stockholders Equity | 8.62B | 9.32B | 8.06B | 7.17B | 6.72B | 6.47B |
Cash Flow | ||||||
| Free Cash Flow | 1.28B | 2.44B | 1.08B | 817.10M | 707.36M | 490.20M |
| Operating Cash Flow | 1.40B | 2.53B | 1.23B | 908.82M | 822.42M | 680.03M |
| Investing Cash Flow | -1.25B | -2.00B | -584.28M | -390.66M | 128.80M | -273.18M |
| Financing Cash Flow | -543.52M | -593.33M | -539.96M | -629.55M | -633.31M | -351.38M |
CARE Ratings Ltd Technical Analysis
Positive
1688.20
Price Trends
1601.83
Positive
1609.73
Positive
1588.64
Positive
Market Momentum
37.63
Negative
57.66
Neutral
57.53
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 1688.2 is above the 20-day moving average (MA) of 1670.88, above the 50-day MA of 1601.83, and above the 200-day MA of 1588.64, indicating a bullish trend. The MACD of 37.63 indicates Negative momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 57.53 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ₹51.92B | 82.39 | ― | 1.23% | 17.59% | 110.36% | |
73 Outperform | ₹52.05B | 26.52 | ― | 0.97% | 20.38% | 6.82% | |
68 Neutral | ₹298.32B | 29.48 | ― | 1.38% | 16.74% | 18.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
IN:CARERATING
CARE Ratings Ltd
1,727.95
50.75
3.03%
IN:CRISIL
CRISIL Limited
4,079.35
-968.92
-19.19%
IN:ICRA
ICRA Limited
5,393.30
-1,039.66
-16.16%
CARE Ratings Ltd Corporate Events
CARE Ratings Clears FY26 Results, Announces Dividend and Updates on IFSC Stake Sale
May 13, 2026
CARE Ratings Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, with the statutory auditors issuing unmodified opinions on both sets of accounts, underscoring ...
CARE Ratings clears FY26 results, Rs 14 dividend and ESOP grant as IFSC stake talks continue
May 13, 2026
CARE Ratings Limited’s board has approved its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, with statutory auditors B S R Co. LLP issuing unmodified opinions, underscoring the integrity...
CARE Ratings Clears FY26 Results, Dividend and Auditor Reappointment as Subsidiary Stake Talks Continue
May 13, 2026
CARE Ratings Limited’s board has approved the audited standalone and consolidated financial results for the quarter and full year ended 31 March 2026, with statutory auditors B S R Co. LLP issuing unmodified opinions, underscoring the compa...
CARE Ratings clears FY26 results, dividend and ESOP grant as IFSC stake talks continue
May 13, 2026
CARE Ratings Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, with statutory auditors B S R Co. LLP issuing unmodified opinions, underscoring the company...
CARE Ratings clears FY26 results, dividend and renews auditor mandate
May 13, 2026
CARE Ratings’ board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, with statutory auditor B S R Co. LLP issuing unmodified opinions, underscoring the robustness of the co...
CARE Ratings clears FY26 results, dividend, ESOP grant and sets AGM as IFSC stake talks continue
May 13, 2026
CARE Ratings Limited’s board has approved the audited standalone and consolidated financial results for the quarter and year ended 31 March 2026, with statutory auditors B S R Co. LLP issuing unmodified opinions, underscoring the company...
CARE Ratings shuts trading window ahead of FY26 results
Mar 27, 2026
CARE Ratings Limited has announced that its trading window for dealing in company shares will be closed from 1 April 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct for directors, committ...
CARE Ratings Schedules Investor Meet With Unifi Capital on Feb. 25
Feb 20, 2026
CARE Ratings Limited has scheduled a virtual analyst and institutional investor meeting with Unifi Capital on 25 February 2026 at 4:00 p.m., in line with its disclosure obligations under SEBI’s listing regulations. The company emphasized tha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.