Edelweiss recommended hold rating on CRISIL with a target price of Rs 1825 in its research report dated April 20, 2018.
Edelweiss' research report on CRISIL
CRISIL’s Q1CY18 numbers came in line with estimates with revenue growing 4.6% YoY and EBITDA jumping 10% YoY as margin expanded 147bps. Research revenue grew a moderate 3% YoY buoyed by client wins and advisory grew 47% YoY on execution of existing mandates.However, ratings segment remained flat YoY as good credit off take (up ~11% YoY) was offset by dip in corporate bond issuances (down ~14% YoY).
Outlook
However, due to slowdown in SME ratings and research, we maintain ‘HOLD’ with TP of INR1,825. We value by DCF method (discount rate of 9.6%) factoring 12% growth in first four years, 11% in next five and then declining gradually to terminal rate of 5%.For all recommendations report, click here
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