Is Care Ratings a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Care Ratings Ltd is a good quality company .

Is Care Ratings undervalued or overvalued?

The key valuation ratios of Care Ratings Ltd's currently when compared to its past seem to suggest it is in the Fair zone .

What is Care Ratings share price return in the past 10 years?

Care Ratings Ltd share price has appreciated 3.1% annually (CAGR) over the past ten years.

Is Care Ratings a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Care Ratings Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

Care Ratings Ltd - Stock Valuation and Financial Performance

Name: Care Ratings
Brand: Care Ratings

BSE: 534804 | NSE: CARERATING | Ratings | Small Cap

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Care Ratings Share Price

₹1,120.90 38.75 3.58%
as on 18-May'24 10:00

DeciZen - make an informed investing decision on Care Ratings

Based on:

Data
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Consolidated basis

1. Right Stock

2. Right Price

Price Chart

3. Right Time ⓘ

#Likely Future 5 Year CAGR.

Overall Rating ⓘ
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1. Quality

2. Valuation

3. Price Trend

Care Ratings stock performance -

PE Chart Key Ratios

P/E Ratio (CD):

32.15

Market Cap:

3,232.4 Cr.

52-wk low:

633.2

52-wk high:

1,265

Is Care Ratings Ltd an attractive stock to invest in?

10 Year X-Ray of Care Ratings: Login to view analysis.

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
ROCE % ⓘ	25.6%	27.4%	30.9%	28.3%	28.1%	22.1%	13%	14.3%	12%	12.5%	-
Value Creation Index ⓘ	0.8	1.0	1.2	1.0	1.0	0.6	-0.1	0.0	-0.1	-0.1	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	236	261	279	287	333	319	244	248	248	279	332
Sales YoY Gr.	-	10.6%	7.2%	2.9%	15.7%	-4.1%	-23.6%	2%	-0.3%	12.7%	-
Adj EPS ⓘ	40.2	39.6	40.3	44.7	53.3	43.1	23.8	27.2	25.2	27.7	33.7
YoY Gr.	-	-1.5%	1.8%	11%	19.3%	-19.1%	-44.9%	14.6%	-7.5%	10%	-
BVPS (₹) ⓘ	166.9	121.5	138.5	176.5	199.7	179.4	173	191.5	215.8	224.2	240.1
Adj Net Profit ⓘ	117	115	118	132	157	127	70	80.3	74.7	82.3	101
Cash Flow from Ops. ⓘ	107	107	106	119	134	109	67.4	86.2	68	82.2	-
Debt/CF from Ops. ⓘ	0	0	0	0	0	0	0	0	0	0	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	1.9%	-3.5%	4.6%	12.7%
Adj EPS ⓘ	-4%	-12.3%	5.3%	10%
BVPSⓘ	3.3%	2.3%	9%	3.9%
Share Price	3.1%	3.6%	28%	61.6%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	TTM
Return on Equity % ⓘ	25.6	27.2	30.9	28.4	28.1	22.2	12.9	14.3	12.1	12.5	14.5
Op. Profit Mgn % ⓘ	62.7	61.3	62.2	63.4	63.4	54.8	33.4	38.6	32.2	35.6	33.8
Net Profit Mgn % ⓘ	49.6	44	42.4	45.8	47.2	40	29.2	32.9	30.9	30.2	30.3
Debt to Equity ⓘ	0	0	0	0	0	0	0	0	0	0	0
Working Cap Days ⓘ	396	430	485	557	559	673	881	814	1,167	1,162	318
Cash Conv. Cycle ⓘ	21	14	14	20	28	44	62	39	17	8	279

Recent Performance Summary

Latest Financials - Care Ratings Ltd.

	Standalone	Consolidated
TTM EPS (₹)	40	33.7
TTM Sales (₹ Cr.)	283	332
BVPS (₹.) ⓘ	254.2	240.1
Reserves (₹ Cr.) ⓘ	729	687
P/BV ⓘ	4.26	4.51
PE ⓘ	27.06	32.15

From the Market
52 Week Low / High (₹)	633.15 / 1265.00
All Time Low / High (₹)	236.45 / 1808.00
Market Cap (₹ Cr.)	3,232
Equity (₹ Cr.)	29.9
Face Value (₹)	10
Industry PE ⓘ	46.1

Management X-Ray of Care Ratings:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Care Ratings

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Price Chart

Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Care Ratings

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23
Sales	236	261	279	287	333	319	244	248	248	279
Operating Expenses ⓘ	88	101	105	105	122	144	162	153	168	180
Manufacturing Costs	4	4	4	4	3	4	4	7	11	13
Material Costs	0	0	0	0	0	0	0	0	0	0
Employee Cost	63	75	76	73	89	103	109	120	126	134
Other Costs ⓘ	21	23	26	29	30	38	49	26	30	33
Operating Profit ⓘ	148	160	174	182	211	175	81	96	80	99
Operating Profit Margin (%)	62.7%	61.2%	62.2%	63.4%	63.4%	54.8%	33.4%	38.5%	32.1%	35.6%
Other Income ⓘ	36	44	9	34	25	30	31	31	27	38
Interest ⓘ	0	1	0	0	0	0	1	1	0	1
Depreciation ⓘ	3	5	4	3	3	3	8	8	8	11
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	181	197	178	212	233	202	104	119	99	126
Tax ⓘ	51	59	59	65	71	64	21	28	22	40
Profit After Tax	130	138	120	148	162	138	83	91	77	85
PAT Margin (%)	55.0%	52.9%	42.8%	51.4%	48.8%	43.3%	34.3%	36.6%	31.0%	30.6%
Adjusted EPS (₹)	44.6	47.5	40.7	50.1	55.1	46.7	28.0	30.4	25.3	28.1
Dividend Payout Ratio (%)	63%	166%	69%	56%	100%	64%	70%	56%	67%	89%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23
Equity and Liabilities
Shareholders Fund	484	352	407	520	588	529	510	564	640	666
Share Capital ⓘ	29	29	29	29	29	29	29	29	30	30
Reserves ⓘ	455	323	378	490	559	499	480	535	610	636
Minority Interest	1	0	0	0	2	2	3	4	5	7
Debt	0	0	0	0	0	0	0	0	0	0
Long Term Debt	0	0	0	0	0	0	0	0	0	0
Short Term Debt	0	0	0	0	0	0	0	0	0	0
Trade Payables	1	2	4	1	3	1	2	4	5	10
Others Liabilities ⓘ	339	395	455	489	566	645	584	603	607	278
Total Liabilities ⓘ	825	749	866	1,010	1,159	1,177	1,099	1,175	1,257	961
Fixed Assets
Gross Block	75	87	90	64	67	92	106	102	115	136
Accumulated Depreciation	16	22	26	3	6	9	12	17	19	29
Net Fixed Assetsⓘ	59	65	64	61	60	83	93	85	96	107
CWIP ⓘ	0	0	0	0	0	0	1	3	8	4
Investmentsⓘ	459	335	381	466	518	439	339	240	44	44
Inventories	0	0	0	0	0	0	0	0	0	0
Trade Receivables	15	16	24	25	39	47	41	21	17	22
Cash Equivalents	29	15	13	14	29	30	115	290	82	56
Others Assetsⓘ	263	319	385	444	512	578	511	535	1,011	727
Total Assets ⓘ	825	749	866	1,010	1,159	1,177	1,099	1,175	1,257	961

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23
Cash Flow From Operating Activity ⓘ	107	107	106	119	134	109	67	86	68	82
PBT ⓘ	180	197	178	212	233	202	104	119	99	126
Adjustment ⓘ	-30	-26	4	-28	-11	-16	-6	-22	-5	-16
Changes in Working Capital ⓘ	8	-6	-17	-0	-21	-15	4	13	4	4
Tax Paid ⓘ	-52	-58	-59	-65	-67	-62	-35	-23	-29	-32
Cash Flow From Investing Activity ⓘ	-46	157	-41	-22	-25	83	27	-38	-27	13
Capex	-3	-11	-3	-1	-2	-26	-4	-4	-19	-11
Net Investments	-79	122	-46	-21	-22	109	31	-50	-34	6
Others ⓘ	36	45	8	0	0	0	0	17	25	19
Cash Flow From Financing Activityⓘ	-62	-276	-66	-96	-99	-195	-107	-43	-35	-63
Net Proceeds from Shares ⓘ	25	0	25	3	1	0	0	0	0	0
Net Proceeds from Borrowing ⓘ	0	0	0	0	0	0	0	0	0	0
Interest Paid ⓘ	0	-1	0	0	0	0	0	0	0	-1
Dividend Paid ⓘ	-87	-275	-91	-99	-82	-162	-86	-40	-38	-60
Others ⓘ	0	0	0	0	-17	-33	-21	-4	4	-3
Net Cash Flow ⓘ	-1	-12	-1	1	11	-4	-13	5	6	32

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23
Ratios
ROE (%)	28.55	32.96	31.49	31.85	29.3	24.73	16.08	16.94	12.76	13.09
ROCE (%)	39.7	46.94	46.48	45.76	41.74	35.18	19.39	21.26	16.03	19.21
Asset Turnover Ratio	0.31	0.33	0.35	0.31	0.31	0.27	0.21	0.22	0.2	0.25
PAT to CFO Conversion(x)	0.82	0.78	0.88	0.8	0.83	0.79	0.81	0.95	0.88	0.96
Working Capital Days
Receivable Days	29	21	26	31	35	49	66	46	28	25
Inventory Days	0	0	0	0	0	0	0	0	0	0
Payable Days	0	0	0	0	0	0	0	0	0	0

Care Ratings Ltd Stock News

Care Ratings Ltd FAQs

What is the share price of Care Ratings?

Company share prices are keep on changing according to the market conditions. The closing price of Care Ratings on 18-May-2024 10:00 is ₹1,120.9.

What is the market cap of Care Ratings?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-May-2024 10:00 the market cap of Care Ratings stood at ₹3,232.4.

What is the P/E ratio of Care Ratings?

The latest P/E ratio of Care Ratings as of 18-May-2024 10:00 is 27.06.

What is the P/B ratio of Care Ratings?

The latest P/B ratio of Care Ratings as of 18-May-2024 10:00 is 4.26.

What is the 52-week high and low of Care Ratings?

The 52-week high of Care Ratings is ₹1,265 and the 52-week low is ₹633.1.

What is the TTM revenue of Care Ratings?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Care Ratings is ₹283.1 ( Cr.) .

About Care Ratings Ltd

CARE Ratings commenced operations in April 1993 and has established itself as the second-largest credit rating agency in India. CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. The company has emerged as the leading agency for covering many rating segments including manufacturing, infrastructure, financial sector including banks, non-financial services among others.

CARE Ratings’ registered office and head office, is located at 4th floor, Godrej Coliseum, Somaiya Hospital Road, Sion (East), Mumbai 400 022. In addition, CARE Ratings has regional offices at Ahmedabad, Bengaluru, Chandigarh, Chennai, Coimbatore, Hyderabad, Jaipur, Kolkata, New Delhi and Pune.

To enhance its scope of business CARE Ratings has been nurturing global opportunities and made forays in different forms:

Launched a new international credit rating agency ‘ARC Ratings’ with 4 partners from Brazil, Portugal, Malaysia and South Africa.
Established a subsidiary CARE Ratings (Africa) Private Limited (CRAF) in Mauritius with equity partnership from African Development Bank (AfDB). CRAF is recognized by Bank of Mauritius as an External Credit Assessment Institution.
Established a subsidiary “CARE Ratings Nepal Ltd” to undertake rating services in Nepal which is licensed by the Securities Board of Nepal. CRNL provides credit ratings and related services inthe geography of Nepal.
Entered into strategic alliance with Japan Credit Ratings Agency (JCR).
Signed a Memorandum of Understanding (MoU) with Russian Rating Agency - Analytical Credit Rating Agency (ACRA) to assist each other towards developing a multilateral credit rating framework and undertake joint analytical research work.

Business area of the company

The company provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Its rating and grading service offerings leverage its domain and analytical expertise backed by the methodologies congruent with the international best practices.

Milestones

1997-2000

Launched ‘CARE Loan Ratings’ for rating term loans
Ventured into Advisory business and bagged 13 assignments
Initially started rating for Debt Mutual Funds
Obtained registration with SEBI when rating agencies came under its purview

2001-2004

Founding member of Association of Credit Rating Agency in Asia (ACRAA)
Launched Corporate Governance and Value Creation Rating
Signed MOU with NSIC for empanelment as an approach rating agency for small scale industries

2005-2008

IPO grading launched
Received ECAI recognition
Signed MOU with 19 banks to provide rating facilities under BASE II
Received mandate from Ministry of Urban Development for rating 13 ULBs under JNNURM
Completed 5,000 assignments

2009-2012

Made an IPO in 2012. Subscribed 34.05 times.
Listed on BSE and NSE.
Rated debt volume crossed Rs. 10 trillion
Foray in Maldives
Acquired Kalypto Risk Technologies Pvt. Ltd
Obtained 9001:2008 certification

2013-2019

CARE Ratings signs MoU with Russian Rating Agency - Analytical Credit Rating Agency (ACRA).
CARE Ratings assigned India’s First Consumer Durable Asset Pool Securitisation Rating.
Winner of The Financial Express CFO Platinum Award (1st rank in services category for companies with turn-over of less than 500 crore)
Launched “Expected Loss” rating for Infrastructure Projects
Launched CARE Advisory Research and Training Ltd, a subsidary of CARE Ratings, which Provides Financial Advisory and Management Consultancy services
CARE Ratings signs MoU to establish Credit Rating Agency in Nepal
CARE Ratings enters into a strategic alliance with Japan Credit Rating Agency, Ltd. (JCR) – 29/12/2015
Obtained a license for doing business in Mauritius and will operate under the banner of CARE Ratings (Africa) Private Limited (CRAF). CRAF was launched on 3rd August 2015.
Empanelled by Government of Karnataka for rating of Tourism sector in the state
Rated the first Green Infrastructure bond
Launched rating of Real Estate Investment Trusts (REITs)
Developed and launched a Debt Quality Index called CDQI. The Index denotes the quality of debt in the country that can be interpreted over time and juxtaposed with other developments in the financial sector.
In terms of rating business penetration attained highest share in BS top 1000 companies (45%), ET top 500 companies (54%) and FE top 500 companies (52%).
Partnered with four other domestic credit rating agencies in Brazil, Malaysia, Portugal and South Africa, to form an international credit rating agency called ARC Ratings.ARC Ratings was launched on January 2014 in London
Assigned rating to India’s first Alternate Investment Fund (AIF)
Rated India’s First Securitization Transaction backed by Mortgage Guarantee