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CARE Ratings Ltd
(CARERATING)
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Rating:81Outperform
Price Target:
₹1,985.00
▲(16.85% 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
Steady Revenue and Earnings Growth
Steady multi-year revenue and earnings growth, including accelerated 2026 revenue growth, supports the durability of CARE Ratings’ fee base. Consistent profit expansion also indicates operating scale and sustained demand for credit opinions and analytical services.
Negative Factors
Margin Compression
The decline in gross and operating margins shows that revenue growth has not translated consistently into incremental profitability. If higher costs or an unfavorable service mix persist, earnings growth and the sustainability of current margins could weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue and Earnings Growth
Steady multi-year revenue and earnings growth, including accelerated 2026 revenue growth, supports the durability of CARE Ratings’ fee base. Consistent profit expansion also indicates operating scale and sustained demand for credit opinions and analytical services.
Read all positive factors
CARE Ratings Ltd (CARERATING) vs. iShares MSCI India ETF (INDA)
Market Cap
₹49.68B
Dividend Yield1.34%
Average Volume (3M)13.61K
Price to Earnings (P/E)27.8
Beta (1Y)0.45
Revenue Growth17.62%
EPS Growth24.43%
CountryIN
Employees608
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)59.17
Shares Outstanding30,118,412
10 Day Avg. Volume34,380
30 Day Avg. Volume13,605
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)67.5
Revenue Forecast (FY)₹4.99B
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, d...
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 ...
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 | 4.91B | 4.73B | 4.02B | 3.32B | 2.79B | 2.47B |
| Gross Profit | 2.29B | 2.40B | 2.29B | 1.49B | 1.55B | 1.35B |
| EBITDA | 2.45B | 2.01B | 2.06B | 1.59B | 1.37B | 1.07B |
| Net Income | 1.78B | 1.71B | 1.37B | 1.01B | 835.29M | 751.08M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 11.05B | 9.58B | 8.42B | 7.70B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 6.19B | 1.50B | 6.41B | 6.26B | 5.65B | 5.21B |
| Total Debt | 0.00 | 261.84M | 237.69M | 195.54M | 174.78M | 89.13M |
| Total Liabilities | -9.43B | 1.62B | 1.42B | 1.17B | 905.77M | 745.98M |
| Stockholders Equity | 9.43B | 9.32B | 8.06B | 7.17B | 6.72B | 6.47B |
Cash Flow | ||||||
| Free Cash Flow | 189.07M | 2.44B | 1.08B | 817.10M | 707.36M | 490.20M |
| Operating Cash Flow | 253.53M | 2.53B | 1.23B | 908.82M | 822.42M | 680.03M |
| Investing Cash Flow | -164.98M | -2.00B | -584.28M | -390.66M | 128.80M | -273.18M |
| Financing Cash Flow | -297.13M | -593.33M | -539.96M | -629.55M | -633.31M | -351.38M |
CARE Ratings Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹49.68B | 27.78 | ― | 1.34% | 17.62% | 24.43% | |
80 Outperform | ₹44.49B | 22.60 | ― | 2.29% | 25.74% | 10.32% | |
77 Outperform | ₹334.44B | 37.71 | ― | 1.39% | 22.03% | 21.52% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:CARERATING
CARE Ratings Ltd
1,643.00
71.72
4.56%
IN:CRISIL
CRISIL Limited
4,542.40
-407.28
-8.23%
IN:ICRA
ICRA Limited
4,582.95
-1,837.91
-28.62%
CARE Ratings Ltd Corporate Events
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 rati...
CARE Ratings Plans Non-Deal Roadshow Meetings in Pune
Jun 17, 2026
CARE Ratings Limited has notified the stock exchanges that its officials will participate in a non-deal roadshow in Pune on 22 June 2026, organized by Ambit Capital, to hold one-on-one and group meetings with analysts and institutional investors. ...
CARE Ratings Allots 11,250 ESOP Shares, Marginally Ups Paid-Up Capital
Jun 10, 2026
CARE Ratings Limited has approved the allotment of 11,250 equity shares with a face value of Rs.10 each to employees exercising options under the CARE Employee Stock Option Scheme 2020. This step modestly increases the company’s paid-up shar...
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.