Content:
- Company Overview of ICRA Ltd
- Company Overview of Care Ratings Ltd
- The Stock Performance of ICRA Limited
- The Stock Performance of Care Ratings Limited
- Fundamental Analysis of ICRA Ltd
- Fundamental Analysis of Care Ratings
- Financial Comparison of ICRA and Care Ratings
- Dividend of ICRA and Care Ratings
- Advantages and Disadvantages of Investing in ICRA Limited
- Advantages and Disadvantages of Investing in Care Ratings
- How to Invest in Care Ratings and ICRA Stocks?
- ICRA vs. Care Ratings Limited- Conclusion
- ICRA vs. Care Ratings – FAQ
Company Overview of ICRA Ltd
ICRA Limited is a professional investment information and credit rating agency based in India. The company, along with its subsidiaries, offers a range of services including rating, research, analytics, data and software solutions. Its business segments consist of Rating, Research and Other Services; Consulting Services; Knowledge Services; and Market Services.
The Consulting Services segment specializes in management consulting services such as risk management, financial advisory, outsourcing and policy advisory. The Knowledge Services segment offers Knowledge Process Outsourcing (KPO) services, while the Market Services segment delivers financial information products and services.
Company Overview of Care Ratings Ltd
CARE Ratings Limited, an India-based credit rating company, offers credit ratings for various industries like manufacturing, infrastructure and the financial sector, including banking and non-financial services. The company provides a range of credit rating services, such as debt ratings, bank loan ratings, securitization ratings and expected loss ratings.
Its subsidiary, CARE Advisory Research and Training Limited, focuses on advisory, environmental, social and governance research. Another subsidiary, CARE Risk Solutions Private Limited, specializes in providing risk and compliance solutions for banks and financial institutions, offering services such as BI and analytics, Liferay implementation and MLD valuations.
The Stock Performance of ICRA Limited
The table below displays the month-by-month stock performance of ICRA Ltd for the past year.
| Month | Return (%) |
| Feb-2024 | 5.91 |
| Mar-2024 | -7.66 |
| Apr-2024 | -2.79 |
| May-2024 | 5.87 |
| Jun-2024 | -0.6 |
| Jul-2024 | -4.4 |
| Aug-2024 | 6.01 |
| Sep-2024 | 20.79 |
| Oct-2024 | -0.7 |
| Nov-2024 | -6.32 |
| Dec-2024 | -6.16 |
| Jan-2025 | -2.94 |
The Stock Performance of Care Ratings Limited
The table below displays the month-by-month stock performance of CARE Ratings Ltd for the past year.
| Month | Return (%) |
| Feb-2024 | 13.34 |
| Mar-2024 | -4.05 |
| Apr-2024 | 7.2 |
| May-2024 | -15.88 |
| Jun-2024 | 0.56 |
| Jul-2024 | -7.47 |
| Aug-2024 | -2.34 |
| Sep-2024 | 3.99 |
| Oct-2024 | 45.01 |
| Nov-2024 | 1.87 |
| Dec-2024 | -9.18 |
| Jan-2025 | -9.69 |
Fundamental Analysis of ICRA Ltd
ICRA Ltd is a prominent credit rating agency based in India, providing independent ratings, research and risk assessment services. Established in 1991, the company has built a reputation for delivering valuable insights to investors, financial institutions and corporations. ICRA’s comprehensive analysis helps clients make informed decisions based on credit risk, financial performance and market trends.
The stock is currently priced at ₹5,684.40, with a market capitalization of ₹5,776.31 crore. Despite delivering a negative 1-year return of -4.90% and being 36.08% below its 52-week high, it has maintained a strong 5-year CAGR of 13.63%.
- Close Price ( ₹ ): 5684.40
- Market Cap ( Cr ): 5776.31
- Dividend Yield %: 1.67
- 1Y Return %: -4.90
- 6M Return %: -2.83
- 1M Return %: -6.69
- 5Y CAGR %: 13.63
- % Away From 52W High: 36.08
- 5Y Avg Net Profit Margin %: 27.59
Fundamental Analysis of Care Ratings
Care Ratings is a prominent credit rating agency in India, specializing in assessing the creditworthiness of various entities, including corporations and government bodies. Established in 1999, the agency provides valuable insights that aid investors in making informed decisions. With a focus on transparency and accuracy, Care Ratings employs rigorous methodologies to evaluate financial health, enabling stakeholders to understand the risks and opportunities associated with their investments.
The stock is currently priced at ₹5,684.40, with a market capitalization of ₹5,776.31 crore. Despite delivering a negative 1-year return of -4.90% and being 36.08% below its 52-week high, it has maintained a strong 5-year CAGR of 13.63%.
- Close Price ( ₹ ): 1153.30
- Market Cap ( Cr ): 3611.50
- Dividend Yield %: 1.49
- 1Y Return %: -0.53
- 6M Return %: 17.91
- 1M Return %: -11.96
- 5Y CAGR %: 17.66
- % Away From 52W High: 36.22
- 5Y Avg Net Profit Margin %: 28.44
Financial Comparison of ICRA and Care Ratings
The table below shows a financial comparison of ICRA Ltd and CARE Ratings Ltd.
| Stock | ICRA | CARE RATING | ||||
| Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
| Total Revenue (₹ Cr) | 452.78 | 521.08 | 566.24 | 316.93 | 378.37 | 428.69 |
| EBITDA (₹ Cr) | 192.46 | 223.73 | 248.91 | 137.28 | 158.82 | 182.88 |
| PBIT (₹ Cr) | 182.63 | 210.27 | 232.53 | 126.75 | 148.34 | 171.56 |
| PBT (₹ Cr) | 181.22 | 199.86 | 222.04 | 125.75 | 146.63 | 169.59 |
| Net Income (₹ Cr) | 135.23 | 151.09 | 161.13 | 83.53 | 100.52 | 118.73 |
| EPS (₹) | 140.12 | 156.55 | 166.95 | 28.15 | 33.76 | 39.77 |
| DPS (₹) | 130.0 | 100.0 | 100.00 | 25.0 | 18.0 | 18.00 |
| Payout ratio (%) | 0.93 | 0.64 | 0.60 | 0.89 | 0.53 | 0.45 |
Points to be noted:
- (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of ICRA and Care Ratings
The table below shows a dividend paid by the company.
| ICRA | Care Ratings | ||||||
| Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
| 23 May, 2024 | 19 Jul, 2024 | Final | 100 | 23 Oct, 2024 | 5 November, 2024 | Interim | 7 |
| 24 May, 2023 | 28 Jul, 2023 | Final | 40 | 10 May, 2024 | 21 June, 2024 | Final | 11 |
| 25 May, 2023 | 28 July, 2023 | Special | 90 | 31 Oct, 2023 | 10 November, 2023 | Interim | 7 |
| 12 May, 2022 | 28 Jul, 2022 | Final | 28 | 12 May, 2023 | 7 July, 2023 | Final | 7 |
| 6 May, 2021 | 22 July, 2021 | Final | 27 | 13 May, 2023 | 7 July, 2023 | Special | 8 |
| 15 Jul, 2020 | 16 Sep, 2020 | Final | 27 | 30 Jan, 2023 | 10 February, 2023 | Interim | 10 |
| 9 May, 2019 | 24 Sep, 2019 | Final | 30 | 30 May, 2022 | 13 September, 2022 | Final | 10 |
| 17 May, 2018 | 3 August, 2018 | Final | 30 | 29 Oct, 2021 | 11 November, 2021 | Interim | 7 |
| 12 May, 2017 | 28 July, 2017 | Final | 27 | 14 Jun 2021 | 6 Sep, 2021 | Final | 6 |
| 20 May, 2016 | 5 August, 2016 | Final | 25 | 08 Feb, 2021 | 17 Feb, 2021 | Interim | 3 |
Advantages and Disadvantages of Investing in ICRA Limited
ICRA Ltd
The primary advantage of ICRA Ltd lies in its strong market position as a leading credit rating agency in India. With a solid reputation for analytical expertise and regulatory compliance, the company benefits from the increasing demand for credit ratings, risk assessment and financial advisory services across industries.
- Strong Market Position in Credit Ratings – ICRA is one of India’s top credit rating agencies, providing independent assessments of financial instruments. Its credibility and regulatory recognition help attract corporate and institutional clients seeking reliable credit ratings.
- Diverse Revenue Streams – The company generates revenue from credit ratings, risk management, research and advisory services. This diversification ensures financial stability and shields it from fluctuations in a single segment.
- Robust Financial Performance – ICRA maintains strong profitability due to its asset-light business model and high-margin services. Consistent revenue growth and cost efficiency make it an attractive long-term investment.
- Growing Demand for Credit Ratings – With India’s expanding financial markets and increased debt issuance, the demand for credit ratings continues to rise. ICRA benefits from a favourable regulatory environment and growing credit penetration.
- Strong Parentage and Global Linkages – As an affiliate of Moody’s Investors Service, ICRA gains global expertise and credibility. This partnership enhances its analytical capabilities, technological advancements and international recognition in credit assessments.
The main disadvantage of ICRA Ltd is its dependency on economic conditions and financial market activity. Since credit rating demand is closely linked to corporate debt issuance and lending cycles, economic downturns or reduced borrowing activity can negatively impact the company’s revenue and growth prospects.
- Cyclicality of Business – ICRA’s revenue depends on corporate bond issuance and credit demand. During economic slowdowns or financial crises, businesses reduce borrowing, leading to lower demand for credit ratings and impacting the company’s earnings.
- Regulatory Challenges and Compliance Costs – As a credit rating agency, ICRA is subject to strict regulatory scrutiny. Changes in compliance requirements increase operational costs and may limit the company’s ability to introduce new rating methodologies.
- Intense Competition in the Industry – ICRA competes with other major rating agencies like CRISIL and CARE Ratings. Competitive pressure forces it to continuously innovate and maintain high service standards to retain market share.
- Reputational Risks – Any failure in rating accuracy or controversies related to rating assignments can damage ICRA’s credibility. Inconsistent ratings or regulatory penalties may lead to a loss of client trust and legal challenges.
- Limited International Presence – Despite its association with Moody’s, ICRA’s operations are largely concentrated in India. This limits its exposure to global credit markets, restricting potential growth opportunities beyond the domestic financial ecosystem.
Advantages and Disadvantages of Investing in Care Ratings
CARE Ratings Ltd
The primary advantage of CARE Ratings Ltd lies in its position as one of India’s leading credit rating agencies. Its strong brand recognition, extensive track record and expertise in providing credit ratings and risk management solutions have made it a trusted name in financial markets.
- Strong Market Position in Credit Ratings – CARE Ratings is among India’s top credit rating agencies, recognized for its analytical capabilities and independent assessments. This position enables it to serve a wide range of clients, from government entities to large corporations.
- Diverse Service Offerings – In addition to credit ratings, CARE Ratings provides research, risk management and advisory services. This diversification allows the company to cater to various industries and generate multiple revenue streams, enhancing financial stability.
- Experienced and Qualified Team – CARE Ratings benefits from its experienced team of analysts and professionals who have a deep understanding of credit risk, financial markets and regulatory frameworks. This expertise strengthens its market credibility and enhances service quality.
- Expanding Global Footprint – The company is making strides to expand its presence beyond India, with a focus on international markets. This expansion will help the company tap into new growth opportunities and diversify its revenue sources.
- Strong Clientele Base – CARE Ratings has a broad base of clients across sectors like banking, insurance, infrastructure and corporates. Its established relationships with major players ensure a steady flow of business and long-term growth prospects in the credit rating industry.
The main disadvantage of CARE Ratings Ltd is its dependency on the cyclical nature of the credit rating business. Demand for credit ratings tends to fluctuate with economic conditions, which can result in periods of reduced activity and inconsistent revenue generation.
- Cyclical Nature of the Business – The demand for credit ratings is often linked to market conditions, especially in sectors like banking and corporate debt. During economic slowdowns or low borrowing activity, CARE Ratings may experience lower revenues and financial instability.
- Intense Competition – CARE Ratings faces stiff competition from other established rating agencies such as CRISIL, ICRA and Fitch. This competition affects its market share, pricing power and profit margins in the credit rating space.
- Regulatory Risks – As a credit rating agency, CARE Ratings must comply with evolving financial regulations, including those set by the Reserve Bank of India (RBI). Any changes in these regulations could require significant adjustments to its operations, impacting costs and business processes.
- Dependence on Corporate Borrowing – A significant portion of CARE Ratings’ revenue is derived from corporate borrowing and debt issuance. Reduced corporate borrowing activity or shifts in the debt market can negatively impact the company’s performance.
- Reputation and Legal Risks – Given the nature of credit ratings, any failure in assessing credit risk accurately can harm the company’s reputation. Negative publicity or legal action from clients could lead to a loss of market credibility and future business.
How to Invest in Care Ratings and ICRA Stocks?
If you are looking to invest in Care Ratings and ICRA Stocks, you can easily do so through Alice Blue, where purchasing stocks is free with zero brokerage on equity delivery trades.
Step 1: Open a Demat & Trading Account
- Visit Alice Blue’s website
- Click on “Open Demat Account” and complete the registration.
- Upload your PAN, Aadhaar and bank details for verification.
Step 2: Add Funds to Your Trading Account
- Log in to Alice Blue and go to the Funds section.
- Add money via UPI, Net Banking, or NEFT/RTGS for smooth transactions.
Step 3: Search & Analyze Care Ratings and ICRA Stocks
- Use the search bar to find Care Ratings and ICRA Stocks.
- Check the market price, charts and company details before investing.
Step 4: Place Your Buy Order
- Click Buy and choose Market Order (instant purchase) or Limit Order (buy at your set price).
- Enter the quantity and confirm your order.
ICRA vs. Care Ratings Limited- Conclusion
ICRA is a leading credit rating agency in India, backed by its association with Moody’s, ensuring global expertise and credibility. It benefits from a strong financial position, diverse revenue streams and increasing demand for credit ratings. However, regulatory challenges and economic cyclicality can impact its growth.
CARE Ratings is a well-established domestic credit rating agency with a strong market presence in India. It offers diversified services, including risk assessment and research. While it benefits from a growing financial market, intense competition and regulatory scrutiny remain challenges for sustained long-term growth.
ICRA vs. Care Ratings – FAQ
ICRA Ltd is a credit rating agency in India that provides ratings, research and risk assessments for various financial instruments and entities. Established in 1991, it helps investors make informed decisions by offering insights into the creditworthiness of different organizations within the financial market.
Care Ratings Ltd is a credit rating agency based in India that assesses the creditworthiness of various entities, including corporate and government borrowers. Established in 1999, it provides ratings, research and risk analysis services, aiding investors in making informed decisions regarding credit risks in the financial markets.
Credit rating stocks refer to shares of companies engaged in providing credit ratings, risk assessment and financial research services. These companies, such as ICRA, CARE Ratings and CRISIL, evaluate the creditworthiness of businesses and financial instruments, benefiting from rising corporate borrowing, regulatory requirements and growing financial market participation.
As of February 2025, Ramnath Krishnan serves as the Managing Director and Group Chief Executive Officer of ICRA Limited. He was re-appointed to this position on October 23, 2024 and has been with the company since 2020.
The main competitors for ICRA and CARE Ratings in the Indian credit rating industry include CRISIL, India Ratings & Research (Fitch Group) and Brickwork Ratings. These agencies provide credit ratings, risk assessments and financial research, competing for market share in evaluating corporate debt instruments, financial institutions and government securities.
As of February 2025, ICRA Limited has a market capitalization of approximately ₹5,599 crore, reflecting its total market value. In comparison, CARE Ratings Ltd has a market capitalization of around ₹3,596 crore. These figures indicate that ICRA is larger in terms of market valuation compared to CARE Ratings.
ICRA is focusing on expanding its Outsourcing and Information Services segment, which has shown consistent growth, to diversify revenue streams beyond traditional credit ratings. Additionally, the company is leveraging technology and analytical excellence to enhance service offerings and achieve sustainable growth.
CARE Ratings Limited is focusing on expanding its services in high-growth sectors such as banking, financial services and infrastructure. The company is also enhancing its analytics, consulting and sustainability offerings to meet evolving client needs. Additionally, CARE Ratings is strengthening its international presence through subsidiaries in Mauritius and Nepal, aiming to capitalize on global opportunities.
As of February 2025, ICRA Limited offers a higher dividend yield compared to CARE Ratings Limited. ICRA’s dividend yield stands at 1.73%, with an annual dividend payment of ₹100 per share. In contrast, CARE Ratings provides a dividend yield of 1.50%, distributing ₹18 per share annually. Therefore, ICRA offers better dividends to its shareholders.
As of February 2025, both ICRA Limited and CARE Ratings Limited have demonstrated strong financial performance, making them viable options for long-term investors. ICRA offers a higher dividend yield of 1.72% compared to CARE Ratings’ 1.50%, indicating a more attractive return on investment for income-focused investors. Ultimately, the choice between the two depends on individual investment goals: ICRA may appeal to those seeking stable dividends and strong promoter backing, while CARE Ratings might attract investors looking for higher recent growth.
As of February 2025, ICRA Limited derives approximately 75% of its revenue from credit rating services, 16.67% from research services and 8.33% from advisory services. CARE Ratings Limited generates the majority of its revenue from ratings and related services, focusing on the corporate and financial sectors.
As of February 2025, ICRA Limited demonstrates higher profitability compared to CARE Ratings Limited. ICRA’s Return on Equity (ROE) stands at 17%, indicating efficient utilization of shareholders’ equity to generate profits. In contrast, CARE Ratings reports a Return on Capital Employed (ROCE) of 20.64%, reflecting its effectiveness in using capital to produce earnings. While both companies exhibit strong financial metrics, ICRA’s superior ROE suggests it is more adept at converting equity investments into net income.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
