CARE Ratings Ltd.

NSE: CARERATING | BSE: 534804 | ISIN: INE752H01013 |Industry: Other Financial Services
|Expensive Performer
Durability score
55 /100
Valuation score
18.3 /100
Momentum score
50.9 /100
Market Capitalizati...
2,922.4 Cr.
AVG Broker Target
1,550
PE TTM Price to Ear...
20.8
CARE Ratings Ltd.    
05 Nov 2018
991.95
-0.79%
buy
Centrum Broking
We retain BUY on CARE with revised TP at Rs1,550 (vs. Rs1,600 earlier). Q2'19 revenue / PAT were below estimates. This is even as volume of debt rated grew 32.6% YoY and points to pricing pressure. The growth in high-yielding non-BLR segment remains muted (down 3% YoY for H1'19); we foresee trends to continue in H2'19 and have thus trimmed our overall volume growth assumptions for FY19E. In the backdrop of concerns around rating downgrade / delay in rating changes, CARE has strengthened its rating standards further. We will watch for outcome therein. We like CARE for its business model, return ratios and free cash...
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CARE Ratings Ltd. has an average target of 1550.00 from 2 brokers.
CARE Ratings Ltd.    
08 Oct 2018
991.95
-0.79%
ICICI Securities Limited
ICICI Securities Ltd | Retail Equity Research CARE Ratings has been the second largest rating company by market share of ~29%. Around 99% (| 322 crore) of its FY18 revenue is generated from the rating segment. However, the recent quarterly...
CARE Ratings Ltd. is trading below it's 100 day SMA of 995.57
CARE Ratings Ltd.    
14 Aug 2018
991.95
-0.79%
ICICI Securities Limited
Reported rating revenues of the company witnessed a decline of 6.3% YoY to | 57.4 crore vs. >| 60 crore estimate. This was due to 2.1% YoY decline (after several quarters) in total volume of debt rated to | 382000 crore. Further, corporate/long term bond ratings (which are high yielding in nature) fell 43.5% YoY In Q1FY19, MTM gains on FMPs were lower vs. Q1FY18. This resulted in lower accrual of other income at | 4.2 crore vs. | 6.5 crore last year. Staff cost was higher due to Esop charge of | 3.66 crore...
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CARE Ratings Ltd.'s price crossed below SMA100 today
CARE Ratings Ltd.    
23 May 2018
991.95
-0.79%
ICICI Securities Limited
ICICI Securities Ltd | Retail Equity Research Reported rating revenues increased above estimate by 21.4% YoY to ~| 94 crore. The growth has been the highest in last several quarters and is led by increased ratings in the short-term debt category The overall quantum of debt rated increased 25% YoY to | 16.48 during FY18. This was due to 7.6% increase in bank loan ratings, 9.4% in long term debt rated and 175.6% in short-term debt rated. The rise in short-term debt rated is mainly due to higher volumes of...
CARE Ratings Ltd.'s price crossed below SMA100 today
CARE Ratings Ltd.    
05 Feb 2018
991.95
-0.79%
Axis Direct
Revenue grew 13% YoY in Q3 with 19% growth in volume of debt rated. Adjusting for the accounting policy change (refer below), revenue growth was ~20% YoY. Employee costs increased ~40% YoY due to higher ESOP charges and higher employee count resulting in margin compression of ~500 bps YoY to 62%.
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CARE Ratings Ltd. is trading below it's 100 day SMA of 995.57
CARE Ratings Ltd.    
31 Jan 2018
991.95
-0.79%
ICICI Securities Limited
CARE's revenues were slightly above estimates but the bottomline was below estimate owing to lower other income & higher staff cost Reported rating revenues increased at a healthy rate of 14.2% YoY to | 74.8 crore. The QoQ decline of 18% in rating revenue was owing to surveillance fee income from Q2. There was an 18.2% YoY increase in volume of fresh debt rated in Q3FY18 to | 3.25 lakh crore. In that, volume of bank loan ratings increased 12.1% YoY However, PAT came in at | 37.3 crore (down 2% YoY) vs. estimate of...
CARE Ratings Ltd.'s price crossed below SMA100 today
CARE Ratings Ltd.    
17 Nov 2017
991.95
-0.79%
Nirmal Bang Institutional
CARE Ratings (CARE) reported an increase of 12.3% in revenues for 2QFY18 on YoY basis from Rs810mn to Rs910mn, 7.5% above our estimate. This revenue growth was mainly driven by new business and surveillance income. The company has changed its policy of recognising surveillance income which led to higher revenues for the quarter by Rs180mn. However, the management stated that this will have no impact on the annual numbers, as the change in policy just deals with timing of revenue recognition. Total expenditure for the quarter grew 18% on YoY basis with employee costs increasing 21% and other expenses soaring 9%. EBITDA, thus came in at Rs663mn, up 10.4% on YoY basis from Rs601mn and 5.8% above our estimate. EBITDA margin for the quarter stood at 72.9%,...
CARE Ratings Ltd.'s price crossed below SMA100 today
CARE Ratings Ltd.    
16 Nov 2017
991.95
-0.79%
ICICI Securities Limited
PAT came in largely in line at | 48.3 crore (up 11.8% YoY). PAT margins were at 53.1% in Q2FY18 The company declared an interim dividend of | 6 per share. For,...
CARE Ratings Ltd. is trading below it's 100 day SMA of 995.57
CARE Ratings Ltd.    
16 Nov 2017
991.95
-0.79%
Centrum Broking
We retain Hold on Credit Analysis And Research (CARE) with TP at Rs1,560 (vs. earlier TP at Rs1,600). Q2'18 reported revenue was a tad higher to our estimates and follows the change in accounting policy towards surveillance related income recognition. Margins, though saw some moderation and we expect trend therein to continue. H2'18 promises to be better than H1'18 and is given the favourable regulatory framework its likely impact on the rating revenues for the credit rating agencies (CRA's). CARE with its strong business model and respectable market share remains one of the key beneficiaries. While we remain positive on CARE,...
CARE Ratings Ltd.'s price crossed below SMA100 today
CARE Ratings Ltd.    
24 Aug 2017, 12:00AM
991.95
-0.79%
Nirmal Bang Institutional
CARE Ratings (CARE) reported an increase of 7.4% in revenues on YoY basis from Rs571mn to Rs614mn; 1.3% above our estimate. This revenue growth was mainly driven by a higher volume of debt rated and a commensurate increase in surveillance assignments. Its peers CRISIL and ICRA reported rating revenue growth of 6% and 9%, respectively, for the June 2017 quarter. Total expenditure for the quarter grew 2% on YoY basis with employee costs decreasing 6% and other expenses jumping 36%. This jump in other expenses was because of an increase in SME marketing teams. EBITDA thus came in at Rs392mn, up 10.7% growth on YoY basis from Rs354mn and 4.5% above our estimate. EBITDA margin for the quarter stood at 63.9%,...
CARE Ratings Ltd.'s price crossed below SMA100 today