Get App
Last Updated : Sep 22, 2016 05:14 PM IST | Source: CNBC-TV18

Buy Credit Analysis and Research: Daljeet Singh Kohli

According to Daljeet Singh Kohli of India Nivesh Securites, one can buy Credit Analysis and Research and feels that the stock may test Rs 1400.

Daljeet Singh Kohli of India Nivesh Securites told CNBC-TV18, "Credit Analysis and Research is one of the most profitable rating agencies amongst the three listed in the country. It has EBITDA margin of almost 65 percent compared to Crisil and others which have almost 50 percent and 45 percent. Although we always rate Crisil on a much higher ranking because of its research business and its size etc. However Care has its own clientele and it has been performing very well. The last two years the numbers were not good because their other income was down because of this change in the taxation on the capital gains part which they invest in debt and that now has become three years kind of story."

"So, FY15 numbers were good, FY16-17 will remain depressed but FY18 will again be very bumper year. Operationally company is doing well, optically numbers will be very good in next one year. So, that makes it a good option for buying the stock because it will lie at the lower level," he said.

"In terms of valuations, it is right now trading at around 21 times of FY18 whereas others are trading at almost 28-30 times. So even if I give it 25 times still I get a target of Rs 1400. Additionally now with last RBI governor going out, giving the dosage of bond rating and all that and deepening the bond market, that again will open up a big plethora of activity for Care. So, Care is poised for a very good up move from here onwards. I think Rs 1400 target will have to be revised upwards but we will wait for the numbers to come forward."

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Sep 22, 2016 05:14 pm
Follow us on
Available On
PCI DSS Compliant