The Discounted Cash Flow (DCF) valuation of CARE Ratings Ltd (CARERATING.NS) is 465.68 INR. With the latest stock price at 1,287.60 INR, the upside of CARE Ratings Ltd based on DCF is -63.8%.

Is CARERATING.NS a buy or a sell?

Based on the latest price of 1,287.60 INR and our DCF valuation, CARE Ratings Ltd (CARERATING.NS) is a sell. Selling CARERATING.NS stocks now will result in a potential gain of 63.8%.

	Range	Selected
WACC / Discount Rate	10.6% - 12.6%	11.6%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	383.48 - 605.49	465.68
Upside	-70.2% - -53.0%	-63.8%

1,287.60 INR

Stock Price

465.68 INR

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

CARERATING.NS DCF Valuation: Revenue & Expenses Forecast

(INR in millions)		Projections

	03-2024	03-2025	03-2026	03-2027	03-2028	03-2029

Revenue	3,317	3,492	4,101	5,618	6,093	6,669
% Growth	19%	5%	17%	37%	8%	9%

Cost of goods sold	(12)	(12)	(13)	(17)	(17)	(18)
% of Revenue	0%	0%	0%	0%	0%	0%

Selling, G&A expenses	(2,145)	(2,258)	(2,652)	(3,633)	(3,940)	(4,312)
% of Revenue	65%	65%	65%	65%	65%	65%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	306	322	378	518	562	615
% of Revenue	9%	9%	9%	9%	9%	9%

Tax expense	(441)	(360)	(423)	(580)	(629)	(689)
Tax rate	30%	23%	23%	23%	23%	23%

Net profit	1,026	1,184	1,391	1,906	2,068	2,264
% Margin	31%	34%	34%	34%	34%	34%