CARE Ratings Ltd

About CARE Ratings Ltd

CARE Ratings Ltd. is a prominent Indian credit rating agency offering credit opinions, grading services, and research across various sectors. It assesses debt instruments, bank facilities, and financial institutions, playing a crucial role in India's financial markets by providing independent credit risk evaluations to investors and lenders and facilitating informed decision-making.

Key Financial Ratios

• P/E Ratio (TTM): Price to Earnings ratio shows how much an investor pays for every rupee of the company's earnings. CARE Ratings Ltd's P/E ratio (TTM) is 31.32, compared to the industry median of 24.32 and large cap median of 21.88.

• P/B Ratio: Price to Book ratio compares a company's market price to its book value per share. CARE Ratings Ltd's P/B ratio is 5.55, compared to the industry median of 3.12 and large cap median of 2.69.

• P/S Ratio: Price to Sales ratio compares a company's market value to its total revenue. CARE Ratings Ltd's P/S ratio is 11.93, compared to the industry median of 1.84 and large cap median of 1.82.

• PEG Ratio: PEG ratio adjusts the P/E ratio for expected earnings growth. CARE Ratings Ltd's PEG ratio is 3.23.

• EV/EBITDA Ratio: This ratio compares a company's enterprise value to its earnings before interest, tax, depreciation, and amortization. CARE Ratings Ltd's EV/EBITDA ratio is 22.00.

• Return on Equity (ROE): ROE measures how much profit a company generates from shareholders' invested capital. CARE Ratings Ltd's ROE is 18.67%.

• Return on Assets (ROA): ROA measures how efficiently a company converts its assets into net profit. CARE Ratings Ltd's ROA is 17.83%.

• Return on Capital Employed (ROCE): ROCE measures how efficiently a company generates profit from all the capital it employs. CARE Ratings Ltd's ROCE is 26%.

• Operating Margin: Operating margin shows what percentage of revenue remains after covering operating expenses. CARE Ratings Ltd's operating margin is 41.65%.

• Net Margin: Net margin shows what percentage of revenue converts into final net profit. CARE Ratings Ltd's net margin is 36.79%.

• Current Ratio: The current ratio measures a company's ability to pay short-term liabilities using short-term assets. CARE Ratings Ltd's current ratio is 6.10.

• Debt to Equity Ratio: This ratio shows the proportion of debt a company uses relative to shareholders' equity. CARE Ratings Ltd's debt-to-equity ratio is 0.03.

• Interest Coverage Ratio: This ratio shows how easily a company can pay interest on its outstanding debt from its operating earnings. CARE Ratings Ltd's interest coverage ratio is 118.50.

• Dividend Per Share (DPS): DPS shows the total dividend paid per share in the latest financial year. CARE Ratings Ltd's DPS is ₹22.22.

• Earnings Per Share (EPS): EPS shows how much profit is allocated to each outstanding share. CARE Ratings Ltd's EPS is 24.25.

(Source line: "Ratios as of 29 May 2026, based on last traded price of ₹1598.30. Data sourced from BSE/NSE Exchange Filings & Public Terminal Data.")

Key Facts

• Founded: 1993 (as Credit Analysis and Research Limited)
• Headquarters: Mumbai, Maharashtra
• Core Offerings: Credit Ratings (Debt Instruments, Bank Facilities), Grading Services (IPOs, AMCs, MF Schemes, Infrastructure), Research & Advisory Services
• Stock Listing: NSE (CARERATING), BSE (534804)
• Promoter: Professionally managed with significant institutional shareholders (e.g., SBI, HDFC, Canara Bank, Axis Bank)

History of CARE Ratings Ltd

• 1993: Incorporated as Credit Analysis and Research Limited (CARE) by leading financial institutions like IDBI, Canara Bank, and UTI.
• Mid-2000s: Expanded operations and diversified its product offerings into new rating categories.
• 2010s: Went public, listing its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Further expanded into various grading and advisory services.
• 2017: Renamed to CARE Ratings Limited, reflecting its core business and brand identity.
• Present: Operates as one of India's leading and most credible credit rating agencies, providing comprehensive rating and grading services across diverse industries and financial instruments.

Business Segments and Revenue Mix

• Credit Ratings: Provides credit opinions for various debt instruments (e.g., bonds, debentures, commercial papers), bank loans, and structured finance products for corporate and financial entities.
• Grading Services: Offers gradings for Initial Public Offerings (IPOs), real estate projects, shipping companies, mutual fund schemes, and infrastructure projects, among others.
• Research & Advisory: Delivers industry research reports, credit analyses, and economic commentaries to support investor and issuer decision-making.

Key Personnel

Mehul Pandya - Managing Director & CEO: Over two decades of experience in the credit rating industry, having served in various leadership roles within CARE Ratings prior to his appointment as MD & CEO.

Subsidiaries and Associate Companies

• CARE Risk Solutions Private Limited
• CARE Advisory Research and Training Limited (CART)
• CARE Ratings (Africa) Private Limited (South Africa)
• CARE Ratings Nepal Limited (Nepal)
• CARE Ratings Bangladesh Limited (Bangladesh)

Corporate Actions

A bonus issue in July 2021 (1:4 ratio) is a notable corporate action. No major recent M&A on record.

References

1. CARE Ratings Ltd. Annual Report [FY2023-24] 2. Exchange Filings (NSE/BSE) 3. Financial Results Announcements