CARE Ratings Ltd (CARERATING) AI Stock Analysis

• Market Cap: ₹48.68B
• Dividend Yield: 1.23%
• Average Volume (3M): 1.86K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 0.58
• Revenue Growth: 19.50%
• EPS Growth: 33.27%
• Country: IN
• Employees: 563
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 18.90
• Shares Outstanding: 30,025,028
• 10 Day Avg. Volume: 3,452
• 30 Day Avg. Volume: 1,864
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹1,766.00 ▲(4.61% 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.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market demand for the company's services, enhancing its market position and long-term profitability.

Balance Sheet Health

A stable balance sheet with low leverage enhances financial resilience and provides flexibility for strategic investments.

Profitability

High profitability margins suggest effective cost control and strong pricing power, supporting sustainable earnings growth.

Negative Factors

Cash Flow Improvement Needs

While current cash flow management is efficient, further improvements are needed to enhance liquidity and support growth initiatives.

Valuation Concerns

High valuation metrics may limit stock appreciation potential and indicate market expectations that are difficult to meet.

Lack of Recent Corporate Events

The absence of recent corporate events may signal a lack of strategic initiatives or growth catalysts in the near term.

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 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	2.36B	2.29B	1.49B	1.55B	1.35B	1.31B
EBITDA	2.14B	2.06B	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	6.41B	6.26B	5.65B	5.21B	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: 1688.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1688.2 is above the 20-day moving average (MA) of 1596.88, above the 50-day MA of 1567.81, and above the 200-day MA of 1554.96, indicating a bullish trend. The MACD of 44.24 indicates Negative momentum. The RSI at 75.24 is Negative, neither overbought nor oversold. The STOCH value of 76.46 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	₹48.68B	31.76	―	1.23%	19.50%	33.27%
ICRA	72 Outperform	₹58.57B	31.05	―	0.97%	8.06%	24.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CRISIL	61 Neutral	₹346.87B	46.30	―	1.38%	6.61%	11.88%

CARE Ratings Ltd Corporate Events

CARE Ratings Completes Postal Ballot Dispatch

CARE Ratings Ltd has announced the completion of dispatching the notice of a postal ballot to its members, as per SEBI regulations. This development, published in leading newspapers, signifies the company’s adherence to regulatory requirements and its commitment to maintaining transparency with its stakeholders.

CARE Ratings Schedules Investor Meetings for November 2025

CARE Ratings Limited has announced the schedule for upcoming meetings with analysts and institutional investors, which will take place in late November 2025. These meetings, involving notable firms like Wasatch Global Advisors and DSP Mutual Fund, will focus on publicly available information and are part of the company’s ongoing efforts to engage with stakeholders and maintain transparency in its operations.

CARE Ratings Expands Employee Stock Options and Increases Share Capital

CARE Ratings Limited has announced the allotment of 6,283 equity shares to its employees following the exercise of options under the CARE Employee Stock Option Scheme 2020. Additionally, the company has granted 27,000 new stock options to eligible employees, which will potentially enhance employee engagement and retention. This move increases the company’s paid-up share capital, reflecting its commitment to employee incentives and aligning with its strategic growth objectives.

CARE Ratings Expands Share Capital with New Equity Allotment

CARE Ratings Limited has announced the allotment of 6,283 equity shares following the exercise of options under its Employee Stock Option Scheme 2020. This move will increase the company’s paid-up share capital, reflecting its commitment to employee engagement and retention. Additionally, the company has granted 27,000 stock options to eligible employees, further reinforcing its strategy to incentivize and retain talent within the organization.