After witnessing a CAGR of 16% in domestic rating revenue over FY22-25, CARE delivered a sector-leading growth of 16% in Q1 FY26 (CRISIL 16% & ICRA 14%). Sustenance of growth momentum in recent quarters despite a notable slowdown in bank credit to Large Industry and NBFCs can be interpreted as a stronger performance from CARE versus peers (as CARE has significantly higher revenue share of Bank Loan ratings).
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
We maintain our consolidated revenue/Ebitda/PAT CAGR estimates of 17%/22%/20% over FY25-27. We continue to believe that Ebitda margin could expand by 300-400 bps during the aforesaid period, driven by improvement in domestic ratings (operating leverage + instrument mix shift + pricing efforts), non-ratings businesses (mainly led by Analytics), and Global Ratings (operating leverage).
Ebitda margin in domestic ratings was 200 bps higher in Q1 FY26, and it improved by 200 bps through FY25. CARE Ratings Ltd. continues to evaluate meaningful inorganic growth opportunities in non-ratings space which can offer synergies of new markets addition or new products addition and are available at palatable valuation.
Retain positive view on Care Ratings with valuation reasonable at 24x FY27 P/E for the envisaged earnings growth/RoE trajectory and potential inorganic fillip.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
