Hold CRISIL: Parag Parikh Financial Advisory Services

6115 Investors following CRISIL. Share this News with them.

0

Like this story, share it with millions of investors on M3

Hold CRISIL: Parag Parikh Financial Advisory Services

Parag Parikh Financial Advisory Services (PPFAS) has recommended hold rating on CRISIL, in its July 22, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy Wipro; target of Rs 480: PINC Research Buy Petronet LNG; target of Rs 170: PINC Research Buy Ashok Leyland; target of Rs 70: PINC Research ALSO READ See previous views by Parag Parikh Financial Advisory Services See what other Experts & Brokerages are saying about CRISIL See messages about CRISIL CRISIL BSE | NSE 01/06/12 Are Mutual Funds betting on CRISIL?

Parag Parikh Financial Advisory Services (PPFAS) has recommended hold rating on CRISIL , in its July 22, 2011 research report.

"CRISIL Limited has reported a good set of numbers for the second quarter ended June 2011. The company clocked 14% Q-Q & 35% Y-Y growth in its consolidated total income to Rs 2,038Mn from Rs 1,788Mn in March 2011 & Rs 1,512Mn in June 2010 respectively. Growth in the current quarter was on account of strong research (Irevna, Pipal) business, driven by expansion from existing clients and new verticals."

"Revenues from rating services have increased by 19% Y-Y to Rs 846Mn for the quarter ended Q2CY11 as against Rs710Mn for the quarter ended Q2CY10. The contribution from high margin bond business was considerably low, due to rising interest rates and tight liquidity conditions. On the positive side, bank loan ratings (BLR) and SME ratings continues to grow. Research services segment delivered a strong performance, by reporting a 54% Y-Y growth to Rs 1,028Mn in the current quarter v/s Rs 666Mn for the corresponding quarter of last year (includes Pipal Research numbers). The Pipal acquisition, is adding momentum to the research segment and also compensating for the muted ratings business. Irevna commenced a long term agreement with an Asia Pacific bank and also started actuarial work with an insurance company in US. Topline growth for the current quarter was hampered by high staff expense, up by 255bps to 45.8% & professional fees, up by 268bps to 7.7%, thereby affecting the operating margins. Adjusted PAT for Q2CY11 has shown a 20% Y-Y growth to Rs 445Mn as compared to Rs 370Mn for Q2CY10."

"At CMP of Rs 7,889.6/-, CRISIL is quoting at 27.3x CY11 estimated earnings of Rs 293.1/- per share. A strong growth in the company's research business with added traction from the rating services over the long run will propel the company to better valuations. We maintain a 'HOLD' on the scrip," says Parag Parikh Financial Advisory Services research report.

See which stocks Mutual Funds/UTI have bought in last quarter?

Disclaimer: The views and investment tips expressed by investment experts 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.

To read the full report click on the attachment