CARE can move to Rs 1150, says SP Tulsian

Credit Analysis and Research (CARE) can move to about Rs 1150 in the next 8-10 months, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "I am keeping my positive stance on Credit Analysis and Research (CARE Ratings). If you see the margin, the company is enjoying a margin of 53-54 percent and if you go by the comparative valuation with the other two listed players that is Crisil and ICRA, this company is ruling at a Price-Earnings (PE) multiple of maybe 21-22 based on FY14 earnings, while the other two peers are ruling at a PE multiple of 31-32.”

He further added, “There are all the chances of PE expansion and considering the better margin of the company, which they are enjoying I am quite hopeful. I am expecting that share can move to about Rs 1,150 or so in the next 8-10 months. So those who wants to have a sound stock in their portfolio needs to go and choose for the CARE Ratings. I am not keeping my positive stance on the other two listings that is PC Jeweller and Bharti Infratel.”