Small Cap Stock Flashing Buy Signals After Q4—Rs 11 Dividend & Rs 1,650 Target In Sight; How To Trade?

The second-largest rating agency in India, CARE Ratings Ltd. (CareEdge Ratings), was founded in 1993 and has a solid reputation for evaluating companies in a variety of industries. With a market valuation of Rs 4,544.45 Cr, CARE Ratings' shares concluded Tuesday's trading session 13.06% higher on the BSE at Rs 1518.25 a share. Following the company's strong Q4 results, which showed its highest-ever standalone and consolidated income from operations with year-on-year growth of 19% and 21%, respectively, the stock price surged.

CARE Ratings Dividend

The Board of Directors "recommended a final dividend of Rs. 11/- (Rupees Eleven only) per equity share of face value of Rs. 10/- (Rupees Ten only) each for the Financial Year 2025. The said dividend, upon approval by the Members, will be paid / dispatched to Members within 30 days of the date of the Annual General Meeting. The Record date for the purpose of payment of Dividend will be Friday, June 27, 2025," said CARE Ratings in a stock exchange filing.

CARE Ratings Q4 Results

In the fourth quarter that concluded on March 31, the company's net profit increased by 77% to Rs 43.37 crore, up from Rs 24.55 crore in the March quarter of 2023-2024. In a regulatory statement, the agency stated that its total income increased from Rs 100.43 crore in the March quarter of FY24 to Rs 124.82 crore in Q4FY25. Its net profit for the entire fiscal year 2024-2025 increased 36.5 percent to Rs 140 crore from Rs 102.56 crore in FY24. With improved performance across the subsidiaries, EBITDA increased 64.8% to Rs 47.7 crore and margins increased to 43.2% from 32% a year earlier, revenue increased 21.9% to Rs 109.7 crore.

""In FY25, CARE Ratings Ltd. achieved its highest-ever standalone and consolidated income from operations, registering year-on-year growth of 19% and 21%, respectively. This performance reflects our steadfast commitment to quality-led growth. Our standalone ratings business continued to demonstrate strong traction, particularly in initial ratings of capital market instruments, securitisation, and bank debt. The consolidated performance was further bolstered by an enhanced contribution from our non-ratings businesses, aided by strong showing from our overseas rating subsidiaries," said Mehul Pandya, Managing Director & Group CEO of Care Edge.

"The standalone EBITDA improved by 22%, underscoring our continued focus on operational efficiency. Other income also improved, supported by better yields from treasury investments. As a result, standalone PAT registered a healthy growth of 24% over the previous year. At the consolidated level, the EBITDA margin improved from 34% to 39%, reflecting significantly improved performance across our subsidiaries. Consolidated PAT margin improved from 27% to 31%, reinforcing the strength and scalability of our increasingly diversified business lines," Mehul Pandya added.

CARE Ratings Share Price Target

"CARE Ratings is maintaining a bullish structure, trading in an ascending channel. The stock has immediate support at ₹1,480, and resistance at ₹1,580. A breakout above ₹1,580 can take the stock toward ₹1,620-₹1,650. The recent pullback appears healthy and may offer an entry opportunity. Traders can consider fresh long positions above ₹1,530 or on dips near ₹1,500 with a stop loss at ₹1,470. As long as the stock holds above its support, the medium-term trend remains positive," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.