CARE Ratings Ltd (CARERATING) AI Stock Analysis

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CARE Ratings Ltd

(NSE:CARERATING)

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Rating:81Outperform

Price Target:INR 1,755.00▲(10.02% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by strong financial quality—solid growth, high margins, minimal leverage, and strong cash generation—supporting a favorable outlook. Technicals add support with an uptrend above key moving averages and neutral-to-positive momentum. Valuation tempers the score due to a relatively high P/E and only a modest dividend yield.

Positive Factors

Revenue and earnings growthSteady multi-year revenue expansion and consistently rising net income indicate durable demand for CARE Ratings’ credit opinions and analytical services. Continued growth broadens the earnings base, supports reinvestment, and strengthens the company’s ability to compound profitability over the next several quarters.

Negative Factors

Margin compressionThe decline in gross and operating margins shows that revenue growth has not translated proportionately into operating profit. If the pressure reflects higher costs or an unfavorable mix rather than a one-off effect, it could reduce earnings conversion and limit the durability of recent profitability.

CARE Ratings Ltd (CARERATING) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 48.09B
Dividend Yield: 1.51%
Average Volume (3M): 7,609
Price to Earnings (P/E): 24.9
Beta (1Y): 0.49
Revenue Growth: 18.86%
EPS Growth: 25.69%
Country: India
Employees: 608
Sector: General
Sector Strength: 55
Industry: Financial - Data & Stock Exchanges

CARE Ratings Ltd Business Overview & Revenue Model

Company Description

CARE Ratings Limited operates as a prominent credit rating agency, delivering a wide spectrum of rating and grading solutions across India, Mauritius, and Nepal. Its principal services involve assessing various debt instruments, including bonds, debe...

How the Company Makes Money

CARE Ratings primarily makes money by charging fees for credit rating and related services. Its main revenue stream is issuer-paid rating fees, where companies, banks, non-banking financial companies, and other entities pay CARE Ratings to assign and...

CARE Ratings Ltd Financial Statement Overview

Summary

Strong overall fundamentals: steady multi-year revenue and earnings growth, high profitability (2026 net margin ~36%), very low leverage (debt-to-equity ~0.03), and robust cash conversion (FCF to net income ~0.97; operating cash flow >2x net income). Key watch-outs are 2026 margin compression versus 2025 and historical free cash flow volatility.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.19B	4.73B	4.02B	3.32B	2.79B	2.47B
Gross Profit	2.49B	2.40B	2.29B	1.49B	1.55B	1.35B
EBITDA	2.49B	2.01B	2.06B	1.59B	1.37B	1.07B
Net Income	1.93B	1.71B	1.37B	1.01B	835.29M	751.08M
Balance Sheet
Total Assets	11.96B	11.05B	9.58B	8.42B	7.70B	7.27B
Cash, Cash Equivalents and Short-Term Investments	2.95B	1.50B	6.41B	6.26B	5.65B	5.21B
Total Debt	241.22M	261.84M	237.69M	195.54M	174.78M	89.13M
Total Liabilities	1.82B	1.62B	1.42B	1.17B	905.77M	745.98M
Stockholders Equity	10.02B	9.32B	8.06B	7.17B	6.72B	6.47B
Cash Flow
Free Cash Flow	0	2.44B	1.08B	817.10M	707.36M	490.20M
Operating Cash Flow	0	2.53B	1.23B	908.82M	822.42M	680.03M
Investing Cash Flow	0	-2.00B	-584.28M	-390.66M	128.80M	-273.18M
Financing Cash Flow	0	-593.33M	-539.96M	-629.55M	-633.31M	-351.38M

CARE Ratings Ltd Technical Analysis

Technical Analysis SentimentNeutral

Last Price1595.15

Price Trends

50DMA1613.82Negative

100DMA1643.35Negative

200DMA1614.90Negative

Market Momentum

MACD-3.68Negative

RSI49.64Neutral

STOCH38.18Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CARERATING, the sentiment is Neutral. The current price of 1595.15 is above the 20-day moving average (MA) of 1594.82, below the 50-day MA of 1613.82, and below the 200-day MA of 1614.90, indicating a neutral trend. The MACD of -3.68 indicates Negative momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 38.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:CARERATING.

CARE Ratings Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:CARERATING against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CARERATING	81Outperform	INR 48.05B	24.88	―	1.51%	18.86%	25.69%
IN:ICRA	80Outperform	INR 43.22B	21.65	―	2.34%	31.17%	6.13%
IN:CRISIL	69Neutral	INR 318.40B	35.53	―	1.47%	23.83%	19.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:CARERATING and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:CARERATING	CARE Ratings Ltd	1595.15	89.08	5.91%
IN:CRISIL	CRISIL Limited	4348.30	-296.21	-6.38%
IN:ICRA	ICRA Limited	4486.65	-1657.50	-26.98%

CARE Ratings Ltd Corporate Events

CARE Ratings Cancels Scheduled Analyst and Investor Meet

Sep 3, 2026

CARE Ratings Limited has informed stock exchanges that its scheduled analyst and institutional investor meeting, planned for the evening of 3 September 2026, has been cancelled due to exigencies. The company emphasized that this disclosure is being m...

CARE Ratings posts robust Q1 FY27 growth with stronger margins

Aug 7, 2026

CARE Ratings Limited reported strong unaudited results for the quarter ended June 30, 2026, with consolidated operating income rising to Rs. 111.68 crore and standalone operating income at Rs. 88.15 crore, both up nearly 19% year-on-year. The ratings...

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.

Date of analysis: Aug 17, 2026

CARE Ratings Ltd AI Stock Analysis