CARE Ratings shares rose 14.51% to Rs 475.6 on the BSE on Wednesday after the company announced that its share buyback plan will take place on July 20, Wednesday.

Also Read| Oil prices rise after falling below $100 as investors await US inflation data

CARE Ratings was trading 13.89% higher at Rs 473.05 at 11:40 a.m. on high volumes. The S&P BSE Sensex, on the other hand, was up 0.35% at 54,075 points. Trading volumes on the counter had more than fivefold increased, with a total of about 520,000 shares changing hands on the NSE and BSE.

Also Read| Sensex surges over 320 points while Nifty around 16,140 in early trade

On May 11, 2022, the stock reached a 52-week low of Rs 402.75. It has almost halved (down 49%) since its 52-week high of Rs 783.25 on August 3, 2021.

Also Read| HCL Technologies share dips over 2% as Q1 PAT falls nearly 9%

CARE Ratings has underperformed the market during the last six months, falling 27% vs a 12% drop in the S&P BSE Sensex. It has fallen 36% in the last year, compared to a 2.6% growth in the benchmark index.

Also Read| Trending Stocks: HCL Tech, UCO Bank, Delta Corp and others in news today

A share buyback plan’s primary goal is to halt the decline in the value of a stock by lowering supply, which effectively drives up the stock price through a higher price to earnings (P/E) ratio.

Also Read| Stocks that should be on your watchlist on Wednesday, July 13, 2022

CARE Rating’s consolidated total income declined 14.3% in the fourth quarter ended March 2022 (Q4FY22), from Rs 85.25 crore to Rs 73.06 crore, owing mostly to the reversal of provision last year. The company’s consolidated net profit fell from Rs 26.49 crore to Rs 23.31 crore. CARE Ratings and its four subsidiaries are included in the consolidated financials.