Maximus Securities is bullish on CRISIL and has recommended buy rating on the stock with a target of Rs 1076 in its October 3, 2011 research report.
"CRISIL registered strong top-line growth in 2QCY2011. The company's net sales grew by 35% yoy to Rs.203 crore led by strong growth in research segment because of addition of Pipal's revenue for the current quarter and strong growth in Irevna and CRISIL research. Net profit increased by 33.4% yoy to Rs. 44cr from Rs.33 crore in previous quarter. During the year ended December 2010 the company's consolidated income from operations grew by 17% to Rs 631 cr supported by 19% growth in rating services to Rs 285 cr contributing 45% of revenues and 23% growth in research services revenues to Rs 293 crore contributing 47% of total revenues. Depreciation rose 43% to Rs 21 crore. CRISIL being a debt free company, the interest cost is nil. During CY'10, the company rated 2,434 new clients (2,268 new clients for CY'09) in Bank loan rating category and rated about 7,800 new SME's (5,758 new SME's for CY'09)."
"We expect CRISIL to post 20-21% CAGR in revenues over CY2010-12 & maintain its leadership position. The company has benefited from its debt free model and has 50% plus RONW. At CMP of Rs 837 we estimate the target price at Rs. 1076 (29x FY12EPS)," says Maximus Securities research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
