Care Ratings Ltd. Buyback 2022

CareEdge Ratings (CARE Ratings Ltd) commenced operations in April 1993 and in almost 3 decades has established itself as one of the leading credit rating agencies in India.

CareEdge Ratings has emerged as the leading agency for covering many rating segments including manufacturing, infrastructure, financial sector including banks, non-financial services, among others. The company has an established track record of rating companies over almost three decades and has had a pivotal role to play in developing bank debt and capital market instruments including CPs, corporate bonds and debentures, and structured credit.

CareEdge is recognized for being a knowledge-based group and provides near real-time research on all domestic and global economic developments. Special studies and surveys are also undertaken on different subjects. The Industry Research team tracks and publishes sector reports on an on-going basis.

CareEdge Ratings’ (CARE Ratings Ltd.) wholly-owned subsidiaries include CARE Advisory, Research & Training Ltd. and CARE Risk Solutions Pvt Ltd.

In the global arena CARE Ratings Ltd. is a partner in ARC Ratings, an international credit rating agency. The company also has subsidiaries in Mauritius ‘CareEdge Ratings (Africa) Private Limited (CRAF)’ and in Nepal ‘CareEdge Ratings Nepal’. The company has a strategic alliance with Japan Credit Ratings Agency (JCR) and MoU with Russian rating agency ACRA.

Buy Back Offer Deal:

Date of Board Meeting approving the proposal: Jul 20 2022
Date of Public Announcement: Jul 20 2022
FV: 10

Details of Buyback:

To Be Updated On 20-July-2022.

Salient financial parameters:

Particulars( Cr.) Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 180 203 236 261 279 287 333 319 244 248 248
Expenses 56 68 88 101 105 105 122 144 162 153 168
Operating Profit 123 135 148 160 174 182 211 175 81 96 80
OPM % 69% 66% 63% 61% 62% 63% 63% 55% 33% 39% 32%
Other Income 28 29 36 44 9 34 25 30 31 31 27
Interest 0 0 0 1 0 0 0 0 1 1 0
Depreciation 2 3 3 5 4 3 3 3 8 8 8
Profit before tax 150 160 181 197 178 212 233 202 104 119 99
Tax % 28% 29% 28% 30% 33% 31% 30% 32% 20% 23% 22%
Net Profit 108 114 129 138 120 148 162 137 82 90 75
EPS in Rs 37.69 39.78 44.63 47.53 40.68 50.13 55.13 46.66 27.96 30.39 25.34
Dividend Payout % 27% 50% 63% 166% 69% 56% 100% 64% 70% 56% 39%
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How to Participate in buyback?

To Be Updated On 20-July-2022.

Recommendation:

To Be Updated On 20-July-2022.

2 Comments

    Any recommendation from the experts….if this buyback should be considered…what would be the good entry point from buyback perspective

    Buyback : Tender type
    Price : 515rs
    No of Shares : 23,68,000 /-
    Size : 121.95cr

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