Care Ratings reported that since January 2024, credit growth has been slower than deposit growth by Rs 3.5 lakh crore. Additional credit reached Rs 8.4 lakh crore, while deposits grew by Rs 11.9 lakh crore. By July 12, 2024, the credit-to-deposit ratio was 79.4%, suggesting potential difficulties for future credit expansion.

Tide turns: Deposit inflows outpace credit offtake

Bank credit growth slows to 13.8% yoy, while deposit growth reaches 8.7% yoy, with positive outlook for bank credit.

Deposits see higher inflows compared to credit offtake in June 28 fortnight: CARE Ratings

Commercial Vehicle (CV) sales volumes are projected to decline by 3-6% in FY25, driven by weak demand in MHCV and LCV segments and high dealer inventory levels. However, a rebound is expected in the second half of the fiscal year due to post-election infrastructure projects and replacement demand. Despite challenges, recovery is anticipated with GDP growth and potential interest rate cuts supporting the industry.

Commercial vehicle sales volumes may degrow by 3-6% in FY25: CARE Ratings

Zee Media Corporation declined 3.89% to Rs 14.81 after CARE Ratings downgraded the company’s long-term rating to “CARE BB; Negative” from “CARE BB+; Stable”.

Zee Media edges lower after CARE Ratings downgrades credit rating with ‘negative’ outlook

A record Rs 2.1 lakh crore dividend payout by the RBI is expected to reduce the urgency for major divestments, according to Care Ratings, maintaining the government’s Rs 50,000 crore target from divestments. Asset monetisation may be preferred if there is a resource shortfall, with SCI sales aiding in achieving the FY25 target. Potential divestments in SCI, CONCOR, and Pawan Hans are on the horizon, with projected total divestment proceeds reaching Rs 12,500-22,500 crore.

RBI’s bumper payout to limit big ticket divestment; govt to maintain Rs 50k cr target: Report

Laurus Labs fell 1.54% to Rs 427.85 after CARE Ratings revised its outlook on the long-term credit facilities of the company to ‘negative’ from ‘stable’ while affirming the rating on the same at “CARE AA”.

Laurus Labs edges lower after CARE Ratings downgrades rating outlook to ‘negative’

Primo Chemicals said that CARE Ratings revised its outlook on the long-term bank facilities of the company ‘negative’ from ‘stable’ while reaffirming the rating at ‘CARE BBB-’.

CARE Ratings revises Primo Chemicals rating outlook to ‘negative’

APSEZ, in a filing, announced that it has become the first large sized private infrastructure developer to get this recognition.

A+ for APSEZ! Adani Ports secures ‘AAA’ credit rating by CARE Ratings

Rating agency CARE Ratings has warned that persistently elevated inflation in certain food categories such as cereals and pulses poses a risk of potential generalisation of price pressures

Onions, Garlic & Now Arhar Dal: Food Inflation Keeps Derailing Benefits from Fast-Paced Economic Growth - News18

In its report, CARE Ratings said the core segments of two wheelers, specifically the 75 cc - 110 cc range in motorcycles and the 75 cc - 125 cc range in scooters, have shown a sharp sales volume decline from FY19 to FY22, with a slight recovery seen in FY23.

Demand for electric two wheelers slowing down due to reduced government subsidy: Report

Banks’ lending to NBFCs rose 35.1% to ₹14.2 lakh crore in June. MF exposure to NBFCs also increased 14.5% to ₹1.62 lakh crore. Banks’ advances to NBFCs share of aggregate advances doubled from 4.5% to 10%. Growth momentum accelerated in FY23 & Q1 FY24 due to NBFCs’ asset base.

Banks’ lending to NBFCs jumps 35% to ₹14.2 lakh cr. in June: Care Ratings report

Hasn't fared well - amongst the low performers

Performance

Seems to be overvalued vs the market average

Valuation

Lagging behind the market in financials growth

Growth

Showing good signs of profitability & efficiency

Profitability

The stock is overpriced but is not in the overbought zone

Current price is more than the intrinsic value

Fundamentals

Good time to consider, stock is not in the overbought zone

Technicals

Entry point

Promoter pledged holding

Unsolicited messages

Default probability

Red flags

Credit Analysis and Research Limited is a credit rating agency. The Company's segments include Ratings and related services, and Others.

CARE Ratings Ltd