Care Ratings Ltd - Stock Valuation and Financial Performance

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

Care Ratings Share Price

1,117.25 -25.05 -2.19%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Care Ratings

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Care Ratings stock performance -

mw4me loader
P/E Ratio (SA):
30.19
Market Cap:
3,335.2 Cr.
52-wk low:
609.9
52-wk high:
1,265

Is Care Ratings Ltd an attractive stock to invest in?

1. Is Care Ratings Ltd a good quality company?

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

2. Is Care Ratings Ltd 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.

3. Is Care Ratings Ltd 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.

10 Year X-Ray of Care Ratings:

Analysis of Financial Track Record

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

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

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Care Ratings Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 25.5%28%30.3%29.2%27.7%21.7%12.6%13.7%13.6%15.4%-
Value Creation
Index
0.81.01.21.11.00.6-0.10.00.00.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 229257265280322297219220219249276
Sales YoY Gr.-12.1%3%5.9%14.7%-7.5%-26.3%0.3%-0.2%13.5%-
Adj EPS 39.940.439.646.252.842.32325.928.234.837
YoY Gr.-1.3%-2%16.4%14.5%-20%-45.6%12.4%9.3%23.3%-
BVPS (₹) 166.5122138.4177.9200.5179.3172.5189.6216.7231.8247.8
Adj Net
Profit
11611711713615612567.876.283.7103110
Cash Flow from Ops. 10910710812313611165.782.563.594.5-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 0.9%-5%4.3%13.5%
Adj EPS -1.5%-8%14.8%23.3%
BVPS3.7%2.9%10.4%7%
Share Price 3.6% 2.5% 38.4% 77.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
25.527.830.329.227.721.712.513.713.615.415.4
Op. Profit
Mgn %
63.9636566.465.157.634.940.239.244.142.3
Net Profit
Mgn %
50.545.64448.548.441.930.934.738.241.540
Debt to
Equity
0000000000-
Working Cap
Days
4024335078888557109618971,2901,260342
Cash Conv.
Cycle
21131722294663381612308

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.40%

Net Profit is growing at healthy rate in last 3 years 14.81%

Sales growth is good in last 4 quarters at 15.56%

Sales growth has been subdued in last 3 years 4.33%

Latest Financials - Care Ratings Ltd.

Standalone Consolidated
TTM EPS (₹) 37 32.2
TTM Sales (₹ Cr.) 276 319
BVPS (₹.) 247.8 237.2
Reserves (₹ Cr.) 710 678
P/BV 4.51 4.71
PE 30.19 34.73
From the Market
52 Week Low / High (₹) 609.85 / 1265.00
All Time Low / High (₹) 236.45 / 1808.00
Market Cap (₹ Cr.) 3,335
Equity (₹ Cr.) 29.9
Face Value (₹) 10
Industry PE 51.1

Management X-Ray of Care Ratings:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Care Ratings

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales229257265280322297219220219249
Operating Expenses 83959394112126143131133139
Manufacturing Costs334434461011
Material Costs0000000000
Employee Cost 61717067829497103107104
Other Costs 19211924272942221624
Operating Profit 147162172186209171778886110
Operating Profit Margin (%) 63.9%63.0%65.0%66.4%65.1%57.6%34.9%40.2%39.2%44.1%
Other Income 3644934253031322837
Interest 0100001101
Depreciation 3543337778
Exceptional Items 0000000000
Profit Before Tax 179199177217232198100113107138
Tax 51595965716320272334
Profit After Tax 129140118152161135818684104
PAT Margin (%) 56.1%54.6%44.4%54.3%50.1%45.4%36.7%39.1%38.5%41.7%
Adjusted EPS (₹)44.448.440.051.754.745.827.329.128.535.0
Dividend Payout Ratio (%)63%163%70%54%101%65%71%58%60%72%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 483354407524591528508559642688
Share Capital 29292929292929293030
Reserves 454325377495561499479529613659
Minority Interest0000000000
Debt0000000000
Long Term Debt0000000000
Short Term Debt0000000000
Trade Payables1221111334
Others Liabilities 338393453986564638575593595264
Total Liabilities 8227488611,5111,1561,1681,0831,1551,240956

Fixed Assets

Gross Block657578565883949299116
Accumulated Depreciation13192236911151725
Net Fixed Assets52565553527583768291
CWIP 0000000473
Investments 46834639248453745835926671112
Inventories0000000000
Trade Receivables14142223374436171416
Cash Equivalents 2713121224211012697143
Others Assets262319380940506571504523996691
Total Assets 8227488611,5111,1561,1681,0831,1551,240956

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 10910710812313611166826495
PBT 179199177217232198100113107138
Adjustment -29-263-32-8-9-8-24-13-17
Changes in Working Capital 10-9-143-19-17715-44
Tax Paid -52-58-58-65-67-61-33-21-26-30
Cash Flow From Investing Activity -47157-41-28-278126-38-23-2
Capex -3-11-3-1-2-26-99-4-14-7
Net Investments -79122-46-27-25107128-51-3021
Others 35458000-31721-17
Cash Flow From Financing Activity -62-276-66-96-99-195-106-43-35-62
Net Proceeds from Shares 250253100000
Net Proceeds from Borrowing 0000000000
Interest Paid 0-10000000-1
Dividend Paid -87-259-91-82-82-162-85-40-38-59
Others 0-150-17-17-33-21-34-2
Net Cash Flow -1-131011-4-142631
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)28.3833.5530.9532.7128.8924.1315.5416.0914.0715.6
ROCE (%)39.5147.5146.0146.5641.2634.4718.6820.3317.4120.64
Asset Turnover Ratio0.30.330.330.240.240.260.190.20.180.23
PAT to CFO Conversion(x)0.840.760.920.810.840.820.810.950.760.91
Working Capital Days
Receivable Days29202530345066442522
Inventory Days0000000000
Payable Days0000000000

Care Ratings Ltd Stock News

Care Ratings Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Care Ratings on 28-Mar-2024 16:01 is ₹1,117.3.
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 28-Mar-2024 16:01 the market cap of Care Ratings stood at ₹3,335.2.
The latest P/E ratio of Care Ratings as of 28-Mar-2024 16:01 is 30.19.
The latest P/B ratio of Care Ratings as of 28-Mar-2024 16:01 is 4.51.
The 52-week high of Care Ratings is ₹1,265 and the 52-week low is ₹609.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Care Ratings is ₹276.3 ( 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

2020

  • CARE Ratings signs MoU with Tresata Inc a world leader in AI software.
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