CARE Ratings Ltd. share price target

Reported rating revenues were at | 56.7 crore (up 18% YoY) vs. our estimates of | 54 crore. Higher growth was due to increase in both volumes & surveillance exercises carried out. Total volume of new debt rated increased from | 265000 crore to | 378000 crore with increases being witnessed in both corporate debt & bank loans rating • Other income was at | 2.5 crore vs. estimate of | 3.1 crore down 14.8% YoY mainly due to investments made for a longer tenure where income is booked only when earned & not on an accrual basis • EBITDA came in at | 35.3 crore vs. | 27.9 crore expected while the EBIDTA margin was at 62% vs. 52% expected. This was mainly due to higher revenue & lower-than-expected expenses of | 21.9 crore. Esop charges of | 1.34 crore in Q1FY16 were not there in Q1FY17. Further, other expenses saw a decline of 25% YoY to | 4.2 crore. They stay structurally positive on the rating business in next three to five years. ICICI Securities Limited maintain TP of | 1400 valuing at 23x FY18E EPS, maintain BUY.

Trendlyne has 4 reports on CARERATING updated in the last year from 2 brokers with an average target of Rs 1496.

ICICI Securities Ltd | Retail Equity Research Reported rating revenues were at | 75.2 crore in line with our estimates. On a YoY basis, revenues fell 3% YoY while QoQ it was...

The company has posted a revenue growth of 10.6% for FY15. The revenue forCARE is derived mostly from the core ratings business. The revenue is expected to improve going forward by 12% for FY16E, 14% for FY17E and 16% for FY18E. Improvement in credit off-take is likely to boost the rating business across all the sectors in the years to come.