| Author |
Message |
tyler_durden
Senior Member
Joined: 24/Oct/2006
Location: India
Online Status: Offline
Posts: 1615
|
   Topic: ICRA can it be next CRISIL?
Posted: 24/Oct/2007 at 11:48am |
ICRA Limited (an Associate of Moody's Investors Service) was incorporated in 1991 as an independent and professional company.
1.ICRA is a leading provider of investment information and credit rating services in India.
2. The developed world is reeling under the impact of sub-prime issue. It has highlighted the importance of credit ratingof loans. Agencies like ICRA will be come important.
3. In USA Fair ISAAC which gives FICO scores is a big name and is 2 Billion dollar company.
4. With growing importance of credit ratings ICRA can become next CRISIL or FICO. ICICI, HDFC, SBI and all other leading banks will need a credit rating going forward.
current market cap is just 900 crores, equity base is also small..only 1 crore shares are there. Moody's hold 28% in ICRA.
ICRA has broad-based its services for the corporate and financial sectors, both in India and overseas, and currently offers its services under the following banners: '
ICRA Online, a wholly-owned subsidiary ofICRA, has launched ICRA Mpower. It is a web-based platform, which provides financial tools for mutual fund distribution. The company’s target is to reach 15,000-20,000 MF distributors.
http://www.moneycontrol.com/india/news/interviews/target-to-reach-15-20k-mf-distributors-icra-online/11/14/304535
Talking of finances:
Market Cap: 930 crores,
CMP: 930
PE = 102
FY08 eps can touch 20 for ICRA has tied up with big banks, on that basis its available at a PE of 45 or so...
It is not cheap but the upscale opportunity is so huge that earnings will always catch up....They are also planning to enter Consulting busines, They are already into KPO..KPO forms only 3% of their business so no risk of dollar rise...
----------------------------------------------------------------------------------------------------------------------
ps: i HAVE INITIATED A SMALL EXPOSURE IN ICRA
Edited by tyler_durden - 24/Oct/2007 at 11:55am
|
|
If you aren't fired with enthusiasm, you will be fired with enthusiasm.
|
 IP Logged |
|
|
|
 |
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 25/Oct/2007 at 12:03pm |
|
Phenomenal business with a foreign partner (Moodys). This is a must buy stock for people looking at stability of returns in the range of 25% - 30% CAGR.
|
|
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
|
|
IP Logged |
|
|
|
johnnybravo
Senior Member
Joined: 17/Jan/2007
Online Status: Offline
Posts: 533
|
Posted: 25/Oct/2007 at 12:14pm |
|
basantji,
would u put CRISIL ahead of ICRA or both at par. As I see it, CRISIL seems to be the market leader, is currently available mcuh cheaper as compared to ICRA. Are there any special triggers for ICRA that CRISIL is not able to bank on?
|
|
IP Logged |
|
|
|
tyler_durden
Senior Member
Joined: 24/Oct/2006
Location: India
Online Status: Offline
Posts: 1615
|
Posted: 25/Oct/2007 at 12:30pm |
I think the tie ups with major banks will be the key to further growth of any of these companies. There are rumors that ICRA will be offering its credit rating services to SBI along with 6 other banks. and if this is true then ICRA can be a multibagger from here,
as regards crisil is cheaper than ICRA ..i would say we should not compare these kind of companies on basis of PE alone...once MF services of ICRA goes break even then we can see sudden spurt in their earnings and company will again become cheap....more over as per earnings estimates..FY08 eps will be around 20 ..so on these basis company is available at a PE of 45 going forward
|
|
If you aren't fired with enthusiasm, you will be fired with enthusiasm.
|
|
IP Logged |
|
|
|
tyler_durden
Senior Member
Joined: 24/Oct/2006
Location: India
Online Status: Offline
Posts: 1615
|
Posted: 25/Oct/2007 at 12:35pm |
ICRA is already in tie up with indian bank, indian overseas bank, canara bank, dena bank, indian bank + 2 other banks and expects MoU with SBI...
going forward ICICI and HDFC tie ups will be crucial to both CRISIL and ICRA....
Edited by tyler_durden - 25/Oct/2007 at 12:36pm
|
|
If you aren't fired with enthusiasm, you will be fired with enthusiasm.
|
|
IP Logged |
|
|
|
basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
|
Posted: 25/Oct/2007 at 12:57pm |
It is like choosing between infy and Wipro. ICRA has Moody and CRISIL has S&P though ICRA looks expensive it comes with very small floating stock so it will always appear expensive.
|
|
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
|
|
IP Logged |
|
|
|
tyler_durden
Senior Member
Joined: 24/Oct/2006
Location: India
Online Status: Offline
Posts: 1615
|
Posted: 25/Oct/2007 at 1:07pm |
you mentioned Infy and Wipro and then ICRA and CRISIL....was this in certain order  like infy is to ICRA and wipro is to CRISIL?? 
|
|
If you aren't fired with enthusiasm, you will be fired with enthusiasm.
|
|
IP Logged |
|
|
|
johnnybravo
Senior Member
Joined: 17/Jan/2007
Online Status: Offline
Posts: 533
|
Posted: 25/Oct/2007 at 1:11pm |
|
i guess, that was on the free float part....
However, I would have bet on Wipro rather than Infy based on some different factors for sure...
I am too keen to bet on the credit rating story in a booming financial market like India - a perfect pickle axe theme candidate (thoda thoda main bhi seekh raha hun!)
koi sector specialist aur info de CRISIL aur ICRA ke bare mein to badhiya rahega...
|
|
IP Logged |
|
|
|
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
