Credit rating agencies play a vital role in assessing the creditworthiness of companies and nations. Here, we explore India’s top three listed credit rating agencies—CRISIL, ICRA, and CARE Ratings—highlighting their current performance and upcoming plans.
1. CRISIL
- Current Market Price (CMP): ₹5373.90
- Market Cap: ₹39,268.95 crore
- 1-Year Return: 31.13%
- Promoter Holding: 66.64%
- Dividend Yield: 1.01%
CRISIL, one of India’s leading credit rating agencies, has demonstrated strong returns, with a 1-year return of 31.13%. It has a high promoter holding, which reflects strong confidence from its promoters.
CRISIL’s upcoming plans include expanding its data analytics and ESG (Environmental, Social, and Governance) services, aiming to cater to growing investor demand in these areas. This expansion is expected to drive CRISIL’s growth further, enhancing its offerings beyond credit ratings.
2. ICRA
- Current Market Price (CMP): ₹7078.75
- Market Cap: ₹6845.23 crore
- 1-Year Return: 29.69%
- Promoter Holding: 51.87%
- Dividend Yield: 1.41%
ICRA has delivered solid returns with a 1-year growth of 29.69%. Its dividend yield of 1.41% makes it attractive for dividend-focused investors. ICRA plans to leverage technology to streamline its credit rating processes and enhance transparency for its clients.
The agency is also focusing on strengthening its market position in corporate credit ratings, which is expected to drive future growth.
3. CARE Ratings
- Current Market Price (CMP): ₹1464.05
- Market Cap: ₹4381.49 crore
- 1-Year Return: 61.02%
- Promoter Holding: 0%
- Dividend Yield: 1.23%
CARE Ratings has had a strong year, with a remarkable 1-year return of 61.02%. With no promoter holding, it has gained significant public interest, with nearly 50% public ownership.
CARE Ratings is focusing on expanding its advisory services and aiming to cater to new industry segments like fintech and green finance. These strategic moves are expected to strengthen its position in the credit rating industry.
Investing in listed credit rating agencies can offer investors exposure to companies that play a crucial role in financial markets. CRISIL, ICRA, and CARE Ratings are among the top credit rating agencies in India, each offering unique advantages based on their growth, profitability, and market standing.
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Investors should consider their investment goals—whether it’s steady income, growth potential, or a mix of both—when choosing between these options. Regardless of which agency one chooses, these companies provide valuable insights into the financial health of organizations, thus holding significant influence in the investment landscape.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.
