Tuesday 4 November 2008

Buy CRISIL, target of Rs 3650: Emkay Global

Emkay Global Financial Services has maintained its buy rating on Credit Rating Information Services of India (CRISIL) with a target of Rs 3650 in its November 3, 2008 research report. "CRISIL’s net profit of Rs 423 million for Q3CY08 was ahead of our expectations driven by better than expected growth in revenues and improvement in operating leverage."

"We have revised our earnings for the stock by 19% for CY08E and 13% by CY09E. The stock is currently trading at 13.1x its CY08E EPS and 10x CY09E EPS. However, we had valued the company at 40% premium to the Sensex multiple which itself has been derated to 10.0x. We are revising our price target on the stock to Rs 3,650, which values the company at 14.0x CY09E EPS (40% premium to the Sensex multiple). We maintain our BUY recommendation on the stock," says Emkay Global Financial Services' research report.

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Source: Moneycontrol

Posted by Harsh at 09:54

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