CARE Ratings Ltd: Who Watches the Watchmen… and Do They Pay Dividends?
1. At a Glance
CARE Ratings Ltd is a top-tier Indian credit rating agency, riding high on its profitability revival arc, licensing muscle, and ESG upgrades. It’s almost debt-free, sits on ₹776 Cr reserves, and still flexes a 25% ROCE—while giving your favorite NBFC a reality check.
2. Introduction with Hook
If SEBI were Hogwarts, CARE Ratings would be the Sorting Hat—deciding which corporate soul goes to Investment Grade heaven or Junkyard hell. And while it’s not conjuring magic, it’s conjuring ₹140 Cr profits with a 39% OPM.
ROE: 18%
3-Year PAT CAGR: 22%
FY25 EPS: ₹45.85
Dividend payout: ~39% (down from 89% in FY23… oof)
And yes, they’re now rating countries and carbon footprints. Truly the MBA kid’s dream job.
3. Business Model (WTF Do They Even Do?)
CARE Ratings assigns credit ratings across debt instruments, corporate loans, bonds, and now:
ESG Ratings (via newly SEBI-licensed CARE ESG)
Sovereign Ratings
Subsidiaries in South Africa and GIFT City
Their core revenue still comes from corporate credit ratings, especially from PSUs, banks, NBFCs, and infra cos. No manufacturing, no inventories—just Excel, Excel, and more Excel.
