Buy CARE Ratings, target price Rs 760: ICICI Direct

ICICI Direct has buy call on CARE Ratings with a target price of Rs 760. The current market price of CARE Ratings Ltd. is Rs 729.85.

Time period given by analyst is 7 days when CARE Ratings Ltd. price can reach defined target.

CARE Ratings Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 2149.93 Crore) operating in Financial Services sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 56.52 Crore, down -33.70 % from last quarter Total Income of Rs 85.25 Crore and up 20.53 % from last year same quarter Total Income of Rs 46.89 Crore. Company reported net profit after tax of Rs 11.55 Crore in latest quarter.

Investment Rationale
The share price of Care Rating has rebounded after a higher base formation at the lower band of rising channel in place since March 2021 and 20 weeks EMA signaling resumption of the up move and offers fresh entry opportunity. Going ahead the brokerage expects the stock to resume up move and head towards Rs 760 levels as it is the 80% retracement of last decline (Rs 791—640).

Promoter/FII Holdings
Promoters held 58.5 per cent stake in the company as of June 30, 2020, while FIIs held 29.2 per cent, DIIs 23.7 per cent and public and others 47.1 per cent.