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Last Updated : Jun 09, 2017 10:55 AM IST | Source:

Buy CARE; target of Rs 1722: Axis Direct

Axis Direct is bullish on CARE has recommended buy rating on the stock with a target price of Rs 1722 in its research report dated May 18, 2017.

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Todays L/H

Axis Direct's research report on CARE

CARE’s net profit for the quarter grew by 8% YoY (down 45% QoQ) to Rs 38 cr on account of strong growth of 241 % YoY in Other income (primarily investment income) due to profits booked on maturity of certain investments made for a longer tenure. Rating income grew by 1.5% YoY in Q4 FY17 (6% in FY17) on account of an increase in both the volume of fresh debt rated (7.5% YoY) and surveillance exercises.


Considering the economic recovery and improvement in credit growth, we are positive on the rating business of CARE. We value CARE at a PE of 25x FY19E EPS of Rs 69 to arrive at a valuation of Rs 1722 per share. We reiterate our BUY rating on the stock.

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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First Published on May 22, 2017 03:30 pm
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