CARE Ratings Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 8:53 pm

Market Cap	4,018 Cr.
Current Price	1,344
High / Low	1,571/916
Stock P/E	35.1
Book Value	252
Dividend Yield	1.34 %
ROCE	20.6 %
ROE	14.5 %
Face Value	10.0
PEG Ratio	13.06

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for CARE Ratings Ltd

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
ICRA Ltd	5,973 Cr.	6,196	7,735/4,983	39.5	989	1.61 %	21.4 %	15.6 %	10.0
CARE Ratings Ltd	4,018 Cr.	1,344	1,571/916	35.1	252	1.34 %	20.6 %	14.5 %	10.0
Industry Average	4,995.50 Cr	3,770.00		37.30	620.50	1.48%	21.00%	15.05%	10.00

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	49	76	56	66	55	85	62	78	66	96	79	90	79
Expenses	41	43	41	43	38	43	48	50	49	55	55	61	57
Operating Profit	9	34	15	22	16	42	14	27	18	42	23	29	22
OPM %	18%	44%	27%	34%	30%	50%	22%	35%	27%	43%	30%	32%	28%
Other Income	7	6	7	7	8	8	12	10	12	11	14	10	12
Interest	0	0	0	0	0	0	0	1	0	0	0	0	0
Depreciation	2	2	2	2	2	3	3	3	3	3	3	3	3
Profit before tax	14	37	20	27	21	48	23	34	26	50	34	36	30
Tax %	17%	28%	25%	15%	33%	27%	28%	41%	31%	29%	30%	32%	30%
Net Profit	12	27	15	23	14	35	16	20	18	36	24	25	21
EPS in Rs	3.75	9.04	4.91	7.72	4.61	11.57	5.38	6.60	5.99	11.81	7.88	8.07	6.94

Last Updated: September 12, 2024, 5:01 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 12, 2024, 5:01 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	203	236	261	279	287	333	319	244	248	248	279	332	344
Expenses	68	88	101	105	105	122	144	162	153	168	180	220	228
Operating Profit	135	148	160	174	182	211	175	81	96	80	99	112	116
OPM %	66%	63%	61%	62%	63%	63%	55%	33%	39%	32%	36%	34%	34%
Other Income	29	36	44	9	34	25	30	31	31	27	38	47	47
Interest	0	0	1	0	0	0	0	1	1	0	1	2	2
Depreciation	3	3	5	4	3	3	3	8	8	8	11	10	11
Profit before tax	160	181	197	178	212	233	202	104	119	99	126	147	151
Tax %	29%	28%	30%	33%	31%	30%	32%	20%	23%	22%	32%	30%
Net Profit	114	130	138	120	148	162	138	83	91	77	85	103	106
EPS in Rs	39.78	44.63	47.53	40.68	50.13	55.13	46.66	27.96	30.39	25.34	28.12	33.67	34.70
Dividend Payout %	50%	63%	166%	69%	56%	100%	64%	70%	56%	67%	89%	53%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	14.04%	6.15%	-13.04%	23.33%	9.46%	-14.81%	-39.86%	9.64%	-15.38%	10.39%	21.18%
Change in YoY Net Profit Growth (%)	0.00%	-7.88%	-19.20%	36.38%	-13.87%	-24.27%	-25.04%	49.49%	-25.02%	25.77%	10.79%

CARE Ratings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	3%
5 Years:	1%
3 Years:	10%
TTM:	21%

Compounded Profit Growth
10 Years:	-1%
5 Years:	-6%
3 Years:	4%
TTM:	29%

Stock Price CAGR
10 Years:	-1%
5 Years:	21%
3 Years:	32%
1 Year:	43%

Return on Equity
10 Years:	20%
5 Years:	14%
3 Years:	13%
Last Year:	14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:32 am

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	29	29	29	29	29	29	29	29	29	30	30	30	30
Reserves	396	456	330	379	491	567	521	504	559	618	643	687	724
Borrowings	0	0	0	0	0	0	0	0	7	9	17	20	21
Other Liabilities	84	96	87	94	64	61	64	85	74	69	80	105	119
Total Liabilities	508	581	446	502	584	658	614	618	671	725	770	842	894
Fixed Assets	58	59	65	64	61	60	83	93	85	96	107	109	117
CWIP	0	0	0	0	0	0	0	1	3	8	4	6	0
Investments	381	459	335	381	466	518	439	339	240	44	44	44	44
Other Assets	69	63	46	58	57	79	93	185	343	577	614	683	732
Total Assets	508	581	446	502	584	658	614	618	671	725	770	842	894

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	83	107	107	106	119	134	109	67	86	68	82	91
Cash from Investing Activity +	-87	-46	157	-41	-22	-25	83	27	-38	-27	13	-39
Cash from Financing Activity +	-40	-62	-276	-66	-96	-99	-195	-107	-43	-35	-63	-63
Net Cash Flow	-44	-1	-12	-1	1	11	-4	-13	5	6	32	-11

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	135.00	148.00	160.00	174.00	182.00	211.00	175.00	81.00	89.00	71.00	82.00	92.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	40	23	22	31	32	43	54	61	31	25	27	25
Inventory Days
Days Payable
Cash Conversion Cycle	40	23	22	31	32	43	54	61	31	25	27	25
Working Capital Days	-85	-100	-82	-65	-10	-1	13	14	1	640	641	594
ROCE %	37%	36%	39%	46%	44%	41%	35%	19%	21%	16%	19%	21%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
FIIs	21.13%	23.18%	25.74%	17.47%	18.14%	17.99%	20.03%	20.25%	20.90%	21.67%	22.91%	23.37%
DIIs	17.89%	16.10%	14.52%	21.53%	24.88%	25.06%	23.79%	23.17%	23.72%	26.32%	26.89%	26.15%
Public	60.98%	60.72%	59.74%	61.00%	56.99%	56.94%	56.16%	56.57%	55.38%	51.99%	50.20%	50.47%
No. of Shareholders	72,658	71,893	69,186	71,423	69,196	64,901	61,050	59,504	55,721	54,539	52,468	53,140

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Quant Active Fund	117,502	0.1	11.64	117,502	2024-12-22	0%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	33.77	28.17	25.45	30.38	27.96
Diluted EPS (Rs.)	33.67	28.17	25.45	30.38	27.96
Cash EPS (Rs.)	37.87	32.32	28.51	33.52	30.97
Book Value[Excl.RevalReserv]/Share (Rs.)	242.72	228.63	220.20	201.29	182.11
Book Value[Incl.RevalReserv]/Share (Rs.)	242.72	228.63	220.20	201.29	182.11
Revenue From Operations / Share (Rs.)	111.11	93.94	83.53	84.33	82.70
PBDIT / Share (Rs.)	53.20	46.22	36.02	43.13	38.28
PBIT / Share (Rs.)	49.69	42.67	33.42	40.48	35.65
PBT / Share (Rs.)	49.12	42.34	33.27	40.27	35.33
Net Profit / Share (Rs.)	34.36	28.77	25.91	30.88	28.34
NP After MI And SOA / Share (Rs.)	33.67	28.12	25.33	30.38	27.96
PBDIT Margin (%)	47.88	49.20	43.12	51.14	46.29
PBIT Margin (%)	44.72	45.43	40.01	48.00	43.10
PBT Margin (%)	44.20	45.07	39.82	47.75	42.72
Net Profit Margin (%)	30.92	30.63	31.02	36.61	34.26
NP After MI And SOA Margin (%)	30.30	29.93	30.33	36.03	33.80
Return on Networth / Equity (%)	14.01	12.42	11.59	15.20	15.44
Return on Capital Employeed (%)	19.43	17.80	14.65	19.27	18.78
Return On Assets (%)	11.94	10.83	10.32	13.32	13.30
Long Term Debt / Equity (X)	0.02	0.00	0.00	0.00	0.00
Total Debt / Equity (X)	0.02	0.00	0.00	0.00	0.00
Asset Turnover Ratio (%)	0.41	0.33	0.31	0.34	0.35
Current Ratio (X)	8.57	10.19	11.01	10.34	4.95
Quick Ratio (X)	8.57	10.19	11.01	10.34	4.95
Dividend Payout Ratio (NP) (%)	0.00	71.02	50.99	44.79	104.13
Dividend Payout Ratio (CP) (%)	0.00	63.07	46.24	41.19	95.15
Earning Retention Ratio (%)	0.00	28.98	49.01	55.21	-4.13
Cash Earning Retention Ratio (%)	0.00	36.93	53.76	58.81	4.85
Interest Coverage Ratio (X)	92.77	137.04	230.27	205.78	121.60
Interest Coverage Ratio (Post Tax) (X)	60.91	86.31	166.65	148.31	91.00
Enterprise Value (Cr.)	3303.86	1859.53	1441.35	932.75	859.57
EV / Net Operating Revenue (X)	9.96	6.67	5.82	3.75	3.53
EV / EBITDA (X)	20.80	13.55	13.50	7.34	7.62
MarketCap / Net Operating Revenue (X)	10.06	6.84	6.13	4.88	3.98
Retention Ratios (%)	0.00	28.97	49.00	55.20	-4.13
Price / BV (X)	4.65	2.84	2.34	2.06	1.82
Price / Net Operating Revenue (X)	10.06	6.84	6.13	4.88	3.98
EarningsYield	0.03	0.04	0.04	0.07	0.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of CARE Ratings Ltd as of December 24, 2024 is: 1,299.74

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 24, 2024, CARE Ratings Ltd is Overvalued by 3.29% compared to the current share price 1,344.00

Intrinsic Value of CARE Ratings Ltd as of December 24, 2024 is: 1,334.68

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 24, 2024, CARE Ratings Ltd is Overvalued by 0.69% compared to the current share price 1,344.00

Last 5 Year EPS CAGR: 2.69%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 31.17%, which is a positive sign. The company has higher reserves (528.85 cr) compared to borrowings (5.69 cr), indicating strong financial stability. The company has shown consistent growth in sales (277.92 cr) and profit (162.23 cr) over the years.	The stock has a high average Working Capital Days of 130.00, which may not be favorable. The stock has a high average Cash Conversion Cycle of 34.50, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in CARE Ratings Ltd:
1. Net Profit Margin: 30.92%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 19.43% (Industry Average ROCE: 21%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 14.01% (Industry Average ROE: 15.05%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 60.91
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 8.57
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 35.1 (Industry average Stock P/E: 37.3)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.02
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

CARE Ratings Ltd. is a Public Limited Listed company incorporated on 21/04/1993 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67190MH1993PLC071691 and registration number is 071691. Currently Company is involved in the business activities of Activities auxiliary to financial service activities. Company’s Total Operating Revenue is Rs. 219.27 Cr. and Equity Capital is Rs. 29.65 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Rating Services	4th Floor, Godrej Coliseum, Mumbai Maharashtra 400022	investor.relations@careedge.in http://www.careratings.com

Management
Name	Position Held
Mr. Najib Shah	Chairman(NonExe.&Ind.Director)
Mr. Mehul Harshadray Pandya	Managing Director & CEO
Mr. V Chandrasekaran	Ind. Non-Executive Director
Mr. Adesh Kumar Gupta	Ind. Non-Executive Director
Ms. Sonal Gunvant Desai	Ind. Non-Executive Director
Dr. M Mathisekaran	Ind. Non-Executive Director
Mr. G Mahalingam	Ind. Non-Executive Director
Mr. Sobhag Mal Jain	Non Exe.Non Ind.Director

FAQ

What is the latest intrinsic value of CARE Ratings Ltd?

The latest intrinsic value of CARE Ratings Ltd as on 24 December 2024 is ₹1299.74, which is 3.29% lower than the current market price of ₹1,344.00. The stock has a market capitalization of 4,018 Cr. and recorded a high/low of 1,571/916 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹724 Cr and total liabilities of ₹894 Cr.

What is the Market Cap of CARE Ratings Ltd?

The Market Cap of CARE Ratings Ltd is 4,018 Cr..

What is the current Stock Price of CARE Ratings Ltd as on 24 December 2024?

The current stock price of CARE Ratings Ltd as on 24 December 2024 is 1,344.

What is the High / Low of CARE Ratings Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of CARE Ratings Ltd stocks is 1,571/916.

What is the Stock P/E of CARE Ratings Ltd?

The Stock P/E of CARE Ratings Ltd is 35.1.

What is the Book Value of CARE Ratings Ltd?

The Book Value of CARE Ratings Ltd is 252.

What is the Dividend Yield of CARE Ratings Ltd?

The Dividend Yield of CARE Ratings Ltd is 1.34 %.

What is the ROCE of CARE Ratings Ltd?

The ROCE of CARE Ratings Ltd is 20.6 %.

What is the ROE of CARE Ratings Ltd?

The ROE of CARE Ratings Ltd is 14.5 %.

What is the Face Value of CARE Ratings Ltd?

The Face Value of CARE Ratings Ltd is 10.0.