Edelweiss' research report on CRISIL
Despite improving bond outlook, CRISIL is cautious on short-term credit growth and SME segment’s prospects due to cut in NSIC subsidy. On account of expensive valuations maintain ‘HOLD’ using DCF with TP of INR2,068.
Outlook
On account of expensive valuations we maintain ‘HOLD’ using DCF taking 15% growth for first 5 years, declining growth over the next 5 years to a terminal rate of 7% and discount rate of 10%. The stock is trading at 38.9x CY17E and 32.6x CY18E EPS.
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