InvestorQ : CRISIL has reported a fall in profits in the fourth quarter ended March. Should I hold my CRISIL shares or sell them?
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CRISIL has reported a fall in profits in the fourth quarter ended March. Should I hold my CRISIL shares or sell them?

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1 year ago
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You are right; CRISIL fourth quarter profits fell by 6.8% to Rs.77 crore. CRISIL ratings business saw very good traction on the back of strong growth in its debt rating business and the large number of issuances in the market. However, the fall in profits was more due to a loss of Rs.7.8 crore on its foreign exchange. This contrasts with a small gain of Rs.2.3 crore in the fourth quarter previous year.

The stock has been quite steady and at the current price of around Rs.1620, the stock has quoting at a P/E of 40 times its rolling earnings. This is not too high if you consider the historical valuations of CRISIL. As the largest and the most established names in the rating business, CRISIL has been able to hold premium valuations to the market. While we don’t recommend fresh entry into the stock, we do suggest holding on to the stock at current levels, if you are already invested.

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