CARE Ratings Ltd

₹ 578 1.04%
05 Dec 4:01 p.m.
About

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)

Key Points

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. [1] [2]

April 2020: Mr. Ajay Mahajan joined as new MD & CEO. [3] [4]

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. [5]

April 2022
Resignation of Chief executive Officer
Mr. Ajay Mahajan due to personal reasons [6]

  • Market Cap 1,715 Cr.
  • Current Price 578
  • High / Low 655 / 403
  • Stock P/E 20.1
  • Book Value 224
  • Dividend Yield 2.94 %
  • ROCE 15.8 %
  • ROE 12.2 %
  • Face Value 10.0

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 64.3%
  • Debtor days have improved from 39.0 to 24.5 days.

Cons

  • The company has delivered a poor sales growth of -2.94% over past five years.
  • Working capital days have increased from 218 days to 640 days

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022
72 56 66 37 76 56 80 49 76 56 66 55 85
35 39 51 32 34 37 49 41 43 41 43 38 43
Operating Profit 36 18 15 5 42 18 31 9 34 15 22 16 42
OPM % 51% 31% 23% 14% 55% 33% 38% 18% 44% 27% 34% 30% 50%
9 7 7 10 8 8 6 7 6 7 7 8 8
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 2 2 2 2 2 2 2 2 2 2 2 2 3
Profit before tax 43 22 20 12 48 24 34 14 37 20 27 21 48
Tax % 15% 22% 23% 21% 25% 22% 23% 17% 28% 25% 15% 33% 27%
Net Profit 37 18 16 10 36 19 26 12 27 15 23 14 35
EPS in Rs 12.39 5.91 5.19 3.17 12.04 6.32 8.85 3.75 9.04 4.91 7.72 4.61 11.57
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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 Mar 2021 Mar 2022 TTM
180 203 236 261 279 287 333 319 244 248 248 261
56 68 88 101 105 105 122 144 162 153 168 166
Operating Profit 123 135 148 160 174 182 211 175 81 96 80 96
OPM % 69% 66% 63% 61% 62% 63% 63% 55% 33% 39% 32% 37%
28 29 36 44 9 34 25 30 31 31 27 30
Interest -0 -0 -0 1 -0 -0 -0 -0 1 1 0 1
Depreciation 2 3 3 5 4 3 3 3 8 8 8 9
Profit before tax 150 160 181 197 178 212 233 202 104 119 99 116
Tax % 28% 29% 28% 30% 33% 31% 30% 32% 20% 23% 22%
Net Profit 108 114 130 138 120 148 162 138 83 91 77 87
EPS in Rs 37.69 39.78 44.63 47.53 40.68 50.13 55.13 46.66 27.96 30.39 25.34 28.81
Dividend Payout % 27% 50% 63% 166% 69% 56% 100% 64% 70% 56% 67%
Compounded Sales Growth
10 Years: 3%
5 Years: -3%
3 Years: -8%
TTM: 0%
Compounded Profit Growth
10 Years: -2%
5 Years: -12%
3 Years: -18%
TTM: 4%
Stock Price CAGR
10 Years: %
5 Years: -16%
3 Years: 7%
1 Year: -9%
Return on Equity
10 Years: 23%
5 Years: 19%
3 Years: 15%
Last Year: 12%

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 Mar 2021 Mar 2022 Sep 2022
29 29 29 29 29 29 29 29 29 29 30 30
Reserves 349 396 456 330 379 490 559 499 480 559 618 634
-0 -0 -0 -0 -0 -0 -0 -0 -0 7 9 4
53 84 96 87 94 64 70 86 108 74 69 114
Total Liabilities 430 508 581 446 502 584 658 614 618 671 725 781
56 58 59 65 64 61 60 83 93 85 96 106
CWIP -0 0 -0 -0 -0 0 -0 -0 1 3 8 -0
Investments 270 381 459 335 381 466 518 439 339 240 44 44
103 69 63 46 58 57 79 93 185 343 577 631
Total Assets 430 508 581 446 502 584 658 614 618 671 725 781

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 Mar 2021 Mar 2022
98 83 107 107 106 119 134 109 67 86 68
-6 -87 -46 157 -41 -22 -25 83 27 -38 -27
-40 -40 -62 -276 -66 -96 -99 -195 -107 -43 -35
Net Cash Flow 52 -44 -1 -12 -1 1 11 -4 -13 5 6

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 Mar 2021 Mar 2022
Debtor Days 32 40 23 22 31 32 43 54 61 31 25
Inventory Days
Days Payable
Cash Conversion Cycle 32 40 23 22 31 32 43 54 61 31 25
Working Capital Days -51 -85 -100 -82 -65 -10 -1 13 14 1 640
ROCE % 37% 36% 39% 46% 44% 42% 36% 20% 22% 16%

Shareholding Pattern

Numbers in percentages

Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022
40.80 29.43 29.17 27.65 26.30 22.69 23.52 21.13 23.18 25.74 17.47 18.14
19.03 24.25 23.69 27.61 21.69 20.40 18.47 17.89 16.10 14.52 21.53 24.88
40.17 46.32 47.14 44.74 52.01 56.91 58.01 60.98 60.72 59.74 61.00 56.99

* The XBRL reporting format changed from Sep'2022 onwards. The new format added details about banks and foreign portfolio investors. These were not available earlier.
The sudden increase in FII or DII might be because of these changes.

Please click on the line-items to see the names of individual entities.

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