Buy CRISIL; target Rs 1290: Firstcall Research

Firstcall Research report on CRISIL

"CRISIL achieved a turnover of Rs. 2685.40 million for Q2 CY13 as against Rs. 2165.50 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 953.70 millions and a net profit of Rs. 605.20 million against Rs. 437.00 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 8.58 for the 2nd quarter as against an EPS of Rs. 6.23 in the corresponding quarter of the previous year." "At the current market price of Rs.1180.00, the stock P/E ratio is at 34.41 x CY13E and 31.71 x CY14E respectively. Earning per share (EPS) of the company for the earnings for CY13E and CY14E is seen at Rs.34.29 and Rs.37.21 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 15 percent and 8 percent over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 21.11 x for CY13E and 19.06 x for CY14E. Price to Book Value of the stock is expected to be at 10.79 x and 8.05 x respectively for CY13E and CY14E. We recommend 'BUY' in this particular scrip with a target price of Rs 1290 for Medium to Long term investment," says Firstcall 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.

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