CARE Ratings Ltd
CARE Ratings is a leading credit rating agency of India. The Company provides various credit ratings that helps 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 riskreturn expectations.(Source : 202003-01 Annual Report Page No:134)
SEBI Imposed Penalty of 1 Cr
for its lapses in giving credit rating to non-convertible debentures of IL&FS. #
Changes in top management
Dec 2019: MD & CEO Resignation
MD Rajesh Mokashi resigned after he was sent on leave due to an anonymous complaint filed with SEBI, TN Arun Kumar to act as interim CEO. # #
April 2020: Mr. Ajay Mahajan joined as new MD & CEO. # #
Jan 2021: Resignation of Chief Rating Officer and CFO
Mr. T. N. Arun Kumar, Executive Director & CRO, and Mr. Bharat A Adnani, CFO resigned on account of personal reasons. #
Future plans
The focus is on getting Back lost Market Share. #
Improving the quality of ratings by using AI for early detection of frauds, for this company has also partnered up with Tresata. #
To grow the non-rating business from 1-2% to 40-50%. #
Aim to cross Sales of 300-350 cr. in 3 year time. #
- Market Cap ₹ 1,395 Cr.
- Current Price ₹ 474
- High / Low ₹ 608 / 235
- Stock P/E 17.7
- Book Value ₹ 194
- Dividend Yield 4.12 %
- ROCE 20.2 %
- ROE 15.9 %
- Face Value ₹ 10.0
Pros
- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 23.34%
- Company has been maintaining a healthy dividend payout of 77.93%
Cons
- The company has delivered a poor sales growth of -1.33% over past five years.
- Earnings include an other income of Rs.33.05 Cr.
Peer comparison
Sector: Credit Rating Agencies Industry: Miscellaneous
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone
Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
99 | 60 | 97 | 73 | 89 | 50 | 72 | 56 | 66 | 37 | 76 | 56 | |
39 | 32 | 35 | 37 | 40 | 38 | 35 | 39 | 51 | 32 | 34 | 37 | |
Operating Profit | 60 | 28 | 61 | 36 | 49 | 12 | 36 | 18 | 15 | 5 | 42 | 18 |
OPM % | 60% | 47% | 63% | 50% | 55% | 24% | 51% | 31% | 23% | 14% | 55% | 33% |
Other Income | 8 | 5 | 7 | 9 | 10 | 8 | 9 | 7 | 7 | 10 | 8 | 8 |
Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Depreciation | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
Profit before tax | 67 | 32 | 68 | 44 | 58 | 18 | 43 | 22 | 20 | 12 | 48 | 24 |
Tax % | 37% | 21% | 33% | 30% | 37% | 24% | 15% | 22% | 23% | 21% | 25% | 22% |
Net Profit | 42 | 25 | 45 | 31 | 36 | 13 | 36 | 17 | 15 | 9 | 35 | 19 |
EPS in Rs | 14.27 | 8.50 | 15.43 | 10.37 | 12.37 | 4.47 | 12.39 | 5.91 | 5.19 | 3.17 | 12.04 | 6.32 |
Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes |
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM | |
---|---|---|---|---|---|---|---|---|---|---|
180 | 203 | 236 | 261 | 279 | 287 | 333 | 319 | 244 | 235 | |
56 | 68 | 88 | 101 | 105 | 105 | 122 | 144 | 162 | 154 | |
Operating Profit | 123 | 135 | 148 | 160 | 174 | 182 | 211 | 175 | 81 | 80 |
OPM % | 69% | 66% | 63% | 61% | 62% | 63% | 63% | 55% | 33% | 34% |
Other Income | 28 | 29 | 36 | 44 | 9 | 34 | 25 | 30 | 31 | 33 |
Interest | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 1 |
Depreciation | 2 | 3 | 3 | 5 | 4 | 3 | 3 | 3 | 8 | 8 |
Profit before tax | 150 | 160 | 181 | 197 | 178 | 212 | 233 | 202 | 104 | 105 |
Tax % | 28% | 29% | 28% | 30% | 33% | 31% | 30% | 32% | 20% | |
Net Profit | 108 | 114 | 129 | 138 | 120 | 148 | 162 | 137 | 82 | 79 |
EPS in Rs | 37.69 | 39.78 | 44.63 | 47.53 | 40.68 | 50.13 | 55.13 | 46.66 | 27.96 | 26.72 |
Dividend Payout % | 27% | 50% | 63% | 166% | 69% | 56% | 100% | 64% | 70% |
Compounded Sales Growth | |
---|---|
10 Years: | % |
5 Years: | -1% |
3 Years: | -5% |
TTM: | -12% |
Compounded Profit Growth | |
---|---|
10 Years: | % |
5 Years: | -6% |
3 Years: | -17% |
TTM: | -24% |
Stock Price CAGR | |
---|---|
10 Years: | % |
5 Years: | -12% |
3 Years: | -30% |
1 Year: | -7% |
Return on Equity | |
---|---|
10 Years: | % |
5 Years: | 26% |
3 Years: | 23% |
Last Year: | 16% |
Balance Sheet
Consolidated Figures in Rs. Crores / View Standalone
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Sep 2020 | |
---|---|---|---|---|---|---|---|---|---|---|
29 | 29 | 29 | 29 | 29 | 29 | 29 | 29 | 29 | 29 | |
Reserves | 349 | 396 | 456 | 330 | 379 | 490 | 559 | 499 | 480 | 543 |
Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
53 | 84 | 96 | 87 | 94 | 64 | 70 | 86 | 108 | 79 | |
Total Liabilities | 430 | 508 | 581 | 446 | 502 | 584 | 658 | 614 | 618 | 651 |
56 | 58 | 59 | 65 | 64 | 61 | 60 | 83 | 93 | 90 | |
CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
Investments | 270 | 381 | 459 | 335 | 381 | 466 | 518 | 439 | 339 | 280 |
103 | 69 | 63 | 46 | 58 | 57 | 79 | 93 | 185 | 281 | |
Total Assets | 430 | 508 | 581 | 446 | 502 | 584 | 658 | 614 | 618 | 651 |
Cash Flows
Consolidated Figures in Rs. Crores / View Standalone
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|
98 | 83 | 107 | 107 | 106 | 119 | 134 | 109 | -30 | |
-6 | -87 | -46 | 157 | -41 | -22 | -25 | 83 | 124 | |
-40 | -40 | -62 | -276 | -66 | -96 | -99 | -195 | -107 | |
Net Cash Flow | 52 | -44 | -1 | -12 | -1 | 1 | 11 | -4 | -13 |
Ratios
Consolidated Figures in Rs. Crores / View Standalone
Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|
ROCE % | 37% | 36% | 39% | 46% | 44% | 42% | 36% | 20% | |
Debtor Days | 32 | 40 | 23 | 22 | 31 | 32 | 43 | 54 | 61 |
Inventory Turnover |
Documents
Add documentRecent announcements
- Announcement under Regulation 30 (LODR)-Investor Presentation 8 Feb
- Board declares Interim Dividend 6 Feb
- Announcement under Regulation 30 (LODR)-Resignation of Company Secretary / Compliance Officer 6 Feb
- Record Date For Interim Dividend 6 Feb
- Announcement under Regulation 30 (LODR)-Press Release / Media Release 6 Feb
View all