CRISIL - Research continues to drive growth - Emkay

CRISIL's Q4CY11 revenue came in at Rs2.2bn, inline with expectation. However net profit at Rs498mn was slightly below expectation led by higher opex.

- Research continues to grow at a strong pace at 34%yoy, while rating grew by a moderate 14%yoy. Continued momentum in IREVNA & leverage on pipal bus to drive research rev further.

- Op margins contracted by 149bps qoq to 33.5% led by 313/117 bps contraction in rating and research margins. Resultantly op profit grew by 3.9%yoy, slightly below exp.

- Strong cash flow generation capabilities of the company should continue to support the expensive valuations. Maintain BUY rating on the stock with PT of Rs1,050.

Source : Equity Bulls

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