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Last Updated on: 06 September, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 534804 | NSE: CARERATING

CARE Ratings Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: September 5, 2025, 3:56 pm

Market Cap 4,799 Cr.
Current Price 1,600
High / Low 1,965/966
Stock P/E33.7
Book Value 269
Dividend Yield1.11 %
ROCE24.6 %
ROE18.0 %
Face Value 10.0
PEG Ratio2.51

Quick Insight

CARE Ratings Ltd, with a market cap of ₹4,976 Cr., is currently trading at ₹1,660 with a P/E ratio of 35.0. The company boasts a healthy ROE of 18.0% and ROCE of 24.6%, indicating efficient capital utilization. Operating at an OPM of 43% and an ICR of 92.77x, CARE Ratings demonstrates robust operational performance and strong debt-servicing capabilities. With significant institutional ownership (FIIs at 24.75% and DIIs at 27.50%) and a diverse shareholder base, including the public at 47.74%, the company enjoys broad investor confidence. The high P/BV ratio of 4.65x suggests a premium valuation, reflecting market optimism about future growth prospects.

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

View Share Price Target for CARE Ratings Ltd

Competitors of CARE Ratings Ltd

Stock Name Market Cap Current Price High / Low Stock P/E Book Value Dividend Yield ROCE ROE Face Value
ICRA Ltd 6,063 Cr. 6,284 7,735/5,01534.3 1,0910.95 %23.1 %16.8 % 10.0
CARE Ratings Ltd 4,799 Cr. 1,600 1,965/96633.7 2691.11 %24.6 %18.0 % 10.0
Industry Average5,431.00 Cr3,942.0034.00680.001.03%23.85%17.40%10.00

All Competitor Stocks of CARE Ratings Ltd

Quarterly Result

MetricJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025
Sales 5585627866967990791179611094
Expenses 38434850495555615762666266
Operating Profit 16421427184223292256304728
OPM % 30%50%22%35%27%43%30%32%28%47%32%43%30%
Other Income 881210121114101212121514
Interest 0001000000111
Depreciation 2333333333333
Profit before tax 21482334265034363064395937
Tax % 33%27%28%41%31%29%30%32%30%27%27%26%29%
Net Profit 14351620183624252147284326
EPS in Rs 4.6111.575.386.605.9911.817.888.076.9415.419.2914.248.61

Last Updated: August 20, 2025, 12:25 pm

Below is a detailed analysis of the quarterly data for CARE Ratings Ltd based on the most recent figures (Jun 2025) and their trends compared to the previous period:

  • For Sales, as of Jun 2025, the value is 94.00 Cr.. The value appears to be declining and may need further review. It has decreased from 110.00 Cr. (Mar 2025) to 94.00 Cr., marking a decrease of 16.00 Cr..
  • For Expenses, as of Jun 2025, the value is 66.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 62.00 Cr. (Mar 2025) to 66.00 Cr., marking an increase of 4.00 Cr..
  • For Operating Profit, as of Jun 2025, the value is 28.00 Cr.. The value appears to be declining and may need further review. It has decreased from 47.00 Cr. (Mar 2025) to 28.00 Cr., marking a decrease of 19.00 Cr..
  • For OPM %, as of Jun 2025, the value is 30.00%. The value appears to be declining and may need further review. It has decreased from 43.00% (Mar 2025) to 30.00%, marking a decrease of 13.00%.
  • For Other Income, as of Jun 2025, the value is 14.00 Cr.. The value appears to be declining and may need further review. It has decreased from 15.00 Cr. (Mar 2025) to 14.00 Cr., marking a decrease of 1.00 Cr..
  • For Interest, as of Jun 2025, the value is 1.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2025) which recorded 1.00 Cr..
  • For Depreciation, as of Jun 2025, the value is 3.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2025) which recorded 3.00 Cr..
  • For Profit before tax, as of Jun 2025, the value is 37.00 Cr.. The value appears to be declining and may need further review. It has decreased from 59.00 Cr. (Mar 2025) to 37.00 Cr., marking a decrease of 22.00 Cr..
  • For Tax %, as of Jun 2025, the value is 29.00%. The value appears to be increasing, which may not be favorable. It has increased from 26.00% (Mar 2025) to 29.00%, marking an increase of 3.00%.
  • For Net Profit, as of Jun 2025, the value is 26.00 Cr.. The value appears to be declining and may need further review. It has decreased from 43.00 Cr. (Mar 2025) to 26.00 Cr., marking a decrease of 17.00 Cr..
  • For EPS in Rs, as of Jun 2025, the value is 8.61. The value appears to be declining and may need further review. It has decreased from 14.24 (Mar 2025) to 8.61, marking a decrease of 5.63.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: August 22, 2025, 5:32 pm

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 236261279287333319244248248279332402417
Expenses 88101105105122144162153168180220247256
Operating Profit 14816017418221117581968099112155161
OPM % 63%61%62%63%63%55%33%39%32%36%34%39%39%
Other Income 3644934253031312738475153
Interest 0100001101222
Depreciation 35433388811101212
Profit before tax 18119717821223320210411999126147192199
Tax % 28%30%33%31%30%32%20%23%22%32%30%27%
Net Profit 13013812014816213883917785103140145
EPS in Rs 44.6347.5340.6850.1355.1346.6627.9630.3925.3428.1233.6745.8547.55
Dividend Payout % 63%166%69%56%100%64%70%56%67%89%53%39%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)6.15%-13.04%23.33%9.46%-14.81%-39.86%9.64%-15.38%10.39%21.18%35.92%
Change in YoY Net Profit Growth (%)0.00%-19.20%36.38%-13.87%-24.27%-25.04%49.49%-25.02%25.77%10.79%14.75%

CARE Ratings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:11%
3 Years:18%
TTM:21%
Compounded Profit Growth
10 Years:2%
5 Years:11%
3 Years:22%
TTM:38%
Stock Price CAGR
10 Years:2%
5 Years:30%
3 Years:44%
1 Year:55%
Return on Equity
10 Years:19%
5 Years:15%
3 Years:15%
Last Year:18%

Last Updated: September 5, 2025, 1:35 am

Balance Sheet

Last Updated: July 25, 2025, 3:26 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Equity Capital 292929292929292930303030
Reserves 456330379491567521504559618643687776
Borrowings 000000079172024
Other Liabilities 96879464616485746980105128
Total Liabilities 581446502584658614618671725770842958
Fixed Assets 596564616083938596107109119
CWIP 000000138463
Investments 459335381466518439339240444444134
Other Assets 634658577993185343577614683702
Total Assets 581446502584658614618671725770842958

Below is a detailed analysis of the balance sheet data for CARE Ratings Ltd based on the most recent figures (Mar 2025) and their trends compared to the previous period:

  • For Equity Capital, as of Mar 2025, the value is 30.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 30.00 Cr..
  • For Reserves, as of Mar 2025, the value is 776.00 Cr.. The value appears strong and on an upward trend. It has increased from 687.00 Cr. (Mar 2024) to 776.00 Cr., marking an increase of 89.00 Cr..
  • For Borrowings, as of Mar 2025, the value is 24.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 20.00 Cr. (Mar 2024) to 24.00 Cr., marking an increase of 4.00 Cr..
  • For Other Liabilities, as of Mar 2025, the value is 128.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 105.00 Cr. (Mar 2024) to 128.00 Cr., marking an increase of 23.00 Cr..
  • For Total Liabilities, as of Mar 2025, the value is 958.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 842.00 Cr. (Mar 2024) to 958.00 Cr., marking an increase of 116.00 Cr..
  • For Fixed Assets, as of Mar 2025, the value is 119.00 Cr.. The value appears strong and on an upward trend. It has increased from 109.00 Cr. (Mar 2024) to 119.00 Cr., marking an increase of 10.00 Cr..
  • For CWIP, as of Mar 2025, the value is 3.00 Cr.. The value appears to be declining and may need further review. It has decreased from 6.00 Cr. (Mar 2024) to 3.00 Cr., marking a decrease of 3.00 Cr..
  • For Investments, as of Mar 2025, the value is 134.00 Cr.. The value appears strong and on an upward trend. It has increased from 44.00 Cr. (Mar 2024) to 134.00 Cr., marking an increase of 90.00 Cr..
  • For Other Assets, as of Mar 2025, the value is 702.00 Cr.. The value appears strong and on an upward trend. It has increased from 683.00 Cr. (Mar 2024) to 702.00 Cr., marking an increase of 19.00 Cr..
  • For Total Assets, as of Mar 2025, the value is 958.00 Cr.. The value appears strong and on an upward trend. It has increased from 842.00 Cr. (Mar 2024) to 958.00 Cr., marking an increase of 116.00 Cr..

Notably, the Reserves (776.00 Cr.) exceed the Borrowings (24.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity +1071071061191341096786688291123
Cash from Investing Activity +-46157-41-22-258327-38-2713-39-58
Cash from Financing Activity +-62-276-66-96-99-195-107-43-35-63-63-54
Net Cash Flow-1-12-1111-4-135632-1111

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow148.00160.00174.00182.00211.00175.0081.0089.0071.0082.0092.00131.00

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

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days232231324354613125272529
Inventory Days
Days Payable
Cash Conversion Cycle232231324354613125272529
Working Capital Days-100-82-65-10-11314-3635638591451
ROCE %36%39%46%44%41%35%19%21%16%19%21%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025
FIIs18.14%17.99%20.03%20.25%20.90%21.67%22.91%23.37%24.79%24.75%23.75%24.62%
DIIs24.88%25.06%23.79%23.17%23.72%26.32%26.89%26.15%25.28%27.50%29.38%29.76%
Public56.99%56.94%56.16%56.57%55.38%51.99%50.20%50.47%49.92%47.74%46.87%45.61%
No. of Shareholders69,19664,90161,05059,50455,72154,53952,46853,14053,60252,00751,39561,111

Shareholding Pattern Chart

No. of Shareholders

CARE Ratings Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Active Fund 117,502 0.1 11.64117,5022025-04-22 15:56:590%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 10.0010.0010.0010.0010.00
Basic EPS (Rs.) 33.7728.1725.4530.3827.96
Diluted EPS (Rs.) 33.6728.1725.4530.3827.96
Cash EPS (Rs.) 37.8732.3228.5133.5230.97
Book Value[Excl.RevalReserv]/Share (Rs.) 242.72228.63220.20201.29182.11
Book Value[Incl.RevalReserv]/Share (Rs.) 242.72228.63220.20201.29182.11
Revenue From Operations / Share (Rs.) 111.1193.9483.5384.3382.70
PBDIT / Share (Rs.) 53.2046.2236.0243.1338.28
PBIT / Share (Rs.) 49.6942.6733.4240.4835.65
PBT / Share (Rs.) 49.1242.3433.2740.2735.33
Net Profit / Share (Rs.) 34.3628.7725.9130.8828.34
NP After MI And SOA / Share (Rs.) 33.6728.1225.3330.3827.96
PBDIT Margin (%) 47.8849.2043.1251.1446.29
PBIT Margin (%) 44.7245.4340.0148.0043.10
PBT Margin (%) 44.2045.0739.8247.7542.72
Net Profit Margin (%) 30.9230.6331.0236.6134.26
NP After MI And SOA Margin (%) 30.3029.9330.3336.0333.80
Return on Networth / Equity (%) 14.0112.4211.5915.2015.44
Return on Capital Employeed (%) 19.4317.8014.6519.2718.78
Return On Assets (%) 11.9410.8310.3213.3213.30
Long Term Debt / Equity (X) 0.020.000.000.000.00
Total Debt / Equity (X) 0.020.000.000.000.00
Asset Turnover Ratio (%) 0.410.330.310.340.35
Current Ratio (X) 8.5710.1911.0110.344.95
Quick Ratio (X) 8.5710.1911.0110.344.95
Dividend Payout Ratio (NP) (%) 0.0071.0250.9944.79104.13
Dividend Payout Ratio (CP) (%) 0.0063.0746.2441.1995.15
Earning Retention Ratio (%) 0.0028.9849.0155.21-4.13
Cash Earning Retention Ratio (%) 0.0036.9353.7658.814.85
Interest Coverage Ratio (X) 92.77137.04230.27205.78121.60
Interest Coverage Ratio (Post Tax) (X) 60.9186.31166.65148.3191.00
Enterprise Value (Cr.) 3303.861859.531441.35932.75859.57
EV / Net Operating Revenue (X) 9.966.675.823.753.53
EV / EBITDA (X) 20.8013.5513.507.347.62
MarketCap / Net Operating Revenue (X) 10.066.846.134.883.98
Retention Ratios (%) 0.0028.9749.0055.20-4.13
Price / BV (X) 4.652.842.342.061.82
Price / Net Operating Revenue (X) 10.066.846.134.883.98
EarningsYield 0.030.040.040.070.08

After reviewing the key financial ratios for CARE Ratings Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 10.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 10.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 33.77. This value is within the healthy range. It has increased from 28.17 (Mar 23) to 33.77, marking an increase of 5.60.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 33.67. This value is within the healthy range. It has increased from 28.17 (Mar 23) to 33.67, marking an increase of 5.50.
  • For Cash EPS (Rs.), as of Mar 24, the value is 37.87. This value is within the healthy range. It has increased from 32.32 (Mar 23) to 37.87, marking an increase of 5.55.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 242.72. It has increased from 228.63 (Mar 23) to 242.72, marking an increase of 14.09.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 242.72. It has increased from 228.63 (Mar 23) to 242.72, marking an increase of 14.09.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 111.11. It has increased from 93.94 (Mar 23) to 111.11, marking an increase of 17.17.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 53.20. This value is within the healthy range. It has increased from 46.22 (Mar 23) to 53.20, marking an increase of 6.98.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 49.69. This value is within the healthy range. It has increased from 42.67 (Mar 23) to 49.69, marking an increase of 7.02.
  • For PBT / Share (Rs.), as of Mar 24, the value is 49.12. This value is within the healthy range. It has increased from 42.34 (Mar 23) to 49.12, marking an increase of 6.78.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 34.36. This value is within the healthy range. It has increased from 28.77 (Mar 23) to 34.36, marking an increase of 5.59.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 33.67. This value is within the healthy range. It has increased from 28.12 (Mar 23) to 33.67, marking an increase of 5.55.
  • For PBDIT Margin (%), as of Mar 24, the value is 47.88. This value is within the healthy range. It has decreased from 49.20 (Mar 23) to 47.88, marking a decrease of 1.32.
  • For PBIT Margin (%), as of Mar 24, the value is 44.72. This value exceeds the healthy maximum of 20. It has decreased from 45.43 (Mar 23) to 44.72, marking a decrease of 0.71.
  • For PBT Margin (%), as of Mar 24, the value is 44.20. This value is within the healthy range. It has decreased from 45.07 (Mar 23) to 44.20, marking a decrease of 0.87.
  • For Net Profit Margin (%), as of Mar 24, the value is 30.92. This value exceeds the healthy maximum of 10. It has increased from 30.63 (Mar 23) to 30.92, marking an increase of 0.29.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 30.30. This value exceeds the healthy maximum of 20. It has increased from 29.93 (Mar 23) to 30.30, marking an increase of 0.37.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 14.01. This value is below the healthy minimum of 15. It has increased from 12.42 (Mar 23) to 14.01, marking an increase of 1.59.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 19.43. This value is within the healthy range. It has increased from 17.80 (Mar 23) to 19.43, marking an increase of 1.63.
  • For Return On Assets (%), as of Mar 24, the value is 11.94. This value is within the healthy range. It has increased from 10.83 (Mar 23) to 11.94, marking an increase of 1.11.
  • For Long Term Debt / Equity (X), as of Mar 24, the value is 0.02. This value is below the healthy minimum of 0.2. It has increased from 0.00 (Mar 23) to 0.02, marking an increase of 0.02.
  • For Total Debt / Equity (X), as of Mar 24, the value is 0.02. This value is within the healthy range. It has increased from 0.00 (Mar 23) to 0.02, marking an increase of 0.02.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 0.41. It has increased from 0.33 (Mar 23) to 0.41, marking an increase of 0.08.
  • For Current Ratio (X), as of Mar 24, the value is 8.57. This value exceeds the healthy maximum of 3. It has decreased from 10.19 (Mar 23) to 8.57, marking a decrease of 1.62.
  • For Quick Ratio (X), as of Mar 24, the value is 8.57. This value exceeds the healthy maximum of 2. It has decreased from 10.19 (Mar 23) to 8.57, marking a decrease of 1.62.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 20. It has decreased from 71.02 (Mar 23) to 0.00, marking a decrease of 71.02.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 20. It has decreased from 63.07 (Mar 23) to 0.00, marking a decrease of 63.07.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 40. It has decreased from 28.98 (Mar 23) to 0.00, marking a decrease of 28.98.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 40. It has decreased from 36.93 (Mar 23) to 0.00, marking a decrease of 36.93.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 92.77. This value is within the healthy range. It has decreased from 137.04 (Mar 23) to 92.77, marking a decrease of 44.27.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 60.91. This value is within the healthy range. It has decreased from 86.31 (Mar 23) to 60.91, marking a decrease of 25.40.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 3,303.86. It has increased from 1,859.53 (Mar 23) to 3,303.86, marking an increase of 1,444.33.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 9.96. This value exceeds the healthy maximum of 3. It has increased from 6.67 (Mar 23) to 9.96, marking an increase of 3.29.
  • For EV / EBITDA (X), as of Mar 24, the value is 20.80. This value exceeds the healthy maximum of 15. It has increased from 13.55 (Mar 23) to 20.80, marking an increase of 7.25.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 10.06. This value exceeds the healthy maximum of 3. It has increased from 6.84 (Mar 23) to 10.06, marking an increase of 3.22.
  • For Retention Ratios (%), as of Mar 24, the value is 0.00. This value is below the healthy minimum of 30. It has decreased from 28.97 (Mar 23) to 0.00, marking a decrease of 28.97.
  • For Price / BV (X), as of Mar 24, the value is 4.65. This value exceeds the healthy maximum of 3. It has increased from 2.84 (Mar 23) to 4.65, marking an increase of 1.81.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 10.06. This value exceeds the healthy maximum of 3. It has increased from 6.84 (Mar 23) to 10.06, marking an increase of 3.22.
  • For EarningsYield, as of Mar 24, the value is 0.03. This value is below the healthy minimum of 5. It has decreased from 0.04 (Mar 23) to 0.03, marking a decrease of 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of CARE Ratings Ltd as of September 6, 2025 is: 1,319.89

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 September 6, 2025, CARE Ratings Ltd is Overvalued by 17.51% compared to the current share price 1,600.00

Intrinsic Value of CARE Ratings Ltd as of September 6, 2025 is: 1,496.95

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 September 6, 2025, CARE Ratings Ltd is Overvalued by 6.44% compared to the current share price 1,600.00

Last 5 Year EPS CAGR: 13.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 30.17%, which is a positive sign.
  2. The company has higher reserves (544.25 cr) compared to borrowings (6.42 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (298.85 cr) and profit (168.38 cr) over the years.
  1. The stock has a high average Working Capital Days of 173.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 33.58, 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: 23.85%)
      • 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: 17.4%)
      • 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: 33.7 (Industry average Stock P/E: 34)
      • 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. 336.69 Cr. and Equity Capital is Rs. 29.93 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Rating Services4th Floor, Godrej Coliseum, Somaiya Hospital Road, Mumbai Maharashtra 400022corp.comm@careedge.in
http://www.careratings.com
Management
NamePosition Held
Mr. Najib ShahChairman(NonExe.&Ind.Director)
Mr. Mehul Harshadray PandyaManaging Director & Group CEO
Mr. Sobhag Mal JainNon Exe.Non Ind.Director
Mr. V ChandrasekaranInd. Non-Executive Director
Ms. Sonal DesaiInd. Non-Executive Director
Dr. M MathisekaranInd. Non-Executive Director
Mr. Gurumoorthy MahalingamInd. Non-Executive Director
Mr. Manoj ChughInd. Non-Executive Director
Mr. Rajiv BansalInd. Non-Executive Director
Ms. Indrani BanerjeeInd. Non-Executive Director

FAQ

What is the intrinsic value of CARE Ratings Ltd?

CARE Ratings Ltd's intrinsic value (as of 05 September 2025) is 1319.89 which is 17.51% lower the current market price of 1,600.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's ₹4,799 Cr. market cap, FY2025-2026 high/low of 1,965/966, reserves of ₹776 Cr, and liabilities of 958 Cr.

What is the Market Cap of CARE Ratings Ltd?

The Market Cap of CARE Ratings Ltd is 4,799 Cr..

What is the current Stock Price of CARE Ratings Ltd as on 05 September 2025?

The current stock price of CARE Ratings Ltd as on 05 September 2025 is 1,600.

What is the High / Low of CARE Ratings Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of CARE Ratings Ltd stocks is 1,965/966.

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

The Stock P/E of CARE Ratings Ltd is 33.7.

What is the Book Value of CARE Ratings Ltd?

The Book Value of CARE Ratings Ltd is 269.

What is the Dividend Yield of CARE Ratings Ltd?

The Dividend Yield of CARE Ratings Ltd is 1.11 %.

What is the ROCE of CARE Ratings Ltd?

The ROCE of CARE Ratings Ltd is 24.6 %.

What is the ROE of CARE Ratings Ltd?

The ROE of CARE Ratings Ltd is 18.0 %.

What is the Face Value of CARE Ratings Ltd?

The Face Value of CARE Ratings Ltd is 10.0.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in CARE Ratings Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE