CARE Ratings Limited, a credit rating agency, provides various rating and grading services in India, Mauritius, and Nepal. More Details
Flawless balance sheet average dividend payer.
Share Price & News
How has CARE Ratings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CARERATING is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: CARERATING's weekly volatility (5%) has been stable over the past year.
7 Day Return
IN Capital Markets
1 Year Return
IN Capital Markets
Return vs Industry: CARERATING exceeded the Indian Capital Markets industry which returned 53% over the past year.
Return vs Market: CARERATING exceeded the Indian Market which returned 51.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is CARE Ratings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall StIf You Had Bought CARE Ratings' (NSE:CARERATING) Shares Three Years Ago You Would Be Down 58%
2 months ago | Simply Wall StWhat You Need To Know About CARE Ratings Limited's (NSE:CARERATING) Investor Composition
3 months ago | Simply Wall StRead This Before Buying CARE Ratings Limited (NSE:CARERATING) For Its Dividend
Is CARE Ratings undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CARERATING (₹714.45) is trading above our estimate of fair value (₹426.97)
Significantly Below Fair Value: CARERATING is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CARERATING is poor value based on its PE Ratio (23.5x) compared to the Indian Capital Markets industry average (19.2x).
PE vs Market: CARERATING is good value based on its PE Ratio (23.5x) compared to the Indian market (23.9x).
Price to Earnings Growth Ratio
PEG Ratio: CARERATING is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: CARERATING is overvalued based on its PB Ratio (3.6x) compared to the IN Capital Markets industry average (0.8x).
How is CARE Ratings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CARERATING's forecast earnings growth (9.9% per year) is above the savings rate (6.8%).
Earnings vs Market: CARERATING's earnings (9.9% per year) are forecast to grow slower than the Indian market (20.6% per year).
High Growth Earnings: CARERATING's earnings are forecast to grow, but not significantly.
Revenue vs Market: CARERATING's revenue (9.9% per year) is forecast to grow slower than the Indian market (12.4% per year).
High Growth Revenue: CARERATING's revenue (9.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CARERATING's Return on Equity is forecast to be low in 3 years time (17.7%).
How has CARE Ratings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CARERATING has high quality earnings.
Growing Profit Margin: CARERATING's current net profit margins (36%) are higher than last year (33.8%).
Past Earnings Growth Analysis
Earnings Trend: CARERATING's earnings have declined by 13.5% per year over the past 5 years.
Accelerating Growth: CARERATING's earnings growth over the past year (8.7%) exceeds its 5-year average (-13.5% per year).
Earnings vs Industry: CARERATING earnings growth over the past year (8.7%) underperformed the Capital Markets industry 34.8%.
Return on Equity
High ROE: CARERATING's Return on Equity (15.3%) is considered low.
How is CARE Ratings's financial position?
Financial Position Analysis
Short Term Liabilities: CARERATING's short term assets (₹5.5B) exceed its short term liabilities (₹528.9M).
Long Term Liabilities: CARERATING's short term assets (₹5.5B) exceed its long term liabilities (₹258.4M).
Debt to Equity History and Analysis
Debt Level: CARERATING is debt free.
Reducing Debt: CARERATING had no debt 5 years ago.
Debt Coverage: CARERATING has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CARERATING has no debt, therefore coverage of interest payments is not a concern.
What is CARE Ratings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CARERATING's dividend (3.5%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).
High Dividend: CARERATING's dividend (3.5%) is in the top 25% of dividend payers in the Indian market (1.41%)
Stability and Growth of Payments
Stable Dividend: CARERATING has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: CARERATING's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (82.3%), CARERATING's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CARERATING's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ajay Mahajan (52 yo)
Mr. Ajay Mohanlal Mahajan serves as Director at CARE Ratings (Africa) Private Limited since 2020. He has been Managing Director, Chief Executive Officer and Executive Director at CARE Ratings Limited since...
Experienced Management: CARERATING's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Experienced Board: CARERATING's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
CARE Ratings Limited's company bio, employee growth, exchange listings and data sources
- Name: CARE Ratings Limited
- Ticker: CARERATING
- Exchange: NSEI
- Founded: 1993
- Industry: Financial Exchanges and Data
- Sector: Diversified Financials
- Market Cap: ₹20.940b
- Shares outstanding: 29.46m
- Website: https://www.careratings.com
Number of Employees
- CARE Ratings Limited
- Godrej Coliseum
- 4th Floor
CARE Ratings Limited, a credit rating agency, provides various rating and grading services in India, Mauritius, and Nepal. The company offers corporate rating services, such as corporate debt, bank loan, i...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/28 12:11|
|End of Day Share Price||2021/07/28 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.