Rakesh Jhunjhunwala Portfolio After being sideways for the first 3 months this year, CRISIL’s share price has come out of the consolidation phase. Now, this stock of Rakesh Jhunjhunwala is registering a growth of around 6 per cent in the last one month. The stock has managed to deliver more than 15 per cent returns to its shareholders over YTD times. However, after the announcement of strong Q4 earnings, Yes Security is expecting more upside in the stock of this Big Bull-backed rating agency company. It is expected that CRISIL share price may go up At the level of 4,100 in 12 months, it delivered about 25 percent returns to its shareholders in this period. CRISIL share price today on NSE 3375 per share.
highlighting its basic principles Rakesh Jhunjhunwala Holding The company, YES Securities report says, “CRISIL delivered a strong operating performance in Q1 CY22 (4% Revenue/16-17% EBITDA & Earnings beat), multi-year high revenue growth of 20% yoy and 29.6% yoy. Characterized by EBITDA margins of. Strong growth performance a) pace of improvement in the domestic ratings business (continuous market share gains), b) research, exposure, regulatory support, and transformation, based on strong demand from core offerings across capabilities GR& The RS business was driven by continued traction in new opportunities and new clients, c) continued growth in capital markets and the strong performance of the India Research business on economic recovery and, d) an integrated approach in the GBA business within key clients. Wallet share profit and new customer addition.
Elaborating on CRISIL’s earnings estimates, the brokerage report said, “We expect strong performance delivery in Q1 CY22 and earnings estimates in CY22-24 by 4-5% by lifting margin assumptions on the back of positive management commentary about concurrency trends. Market/Wallet share across various businesses and readiness/capacity to tap emerging opportunities (related to ESG and others). We estimate 15%/23% Consolidated Revenue/PBT CAGR on CY21-24 and over the period Margin expansion of ~400 bps during the period. Improved margins and growth will lead to RoE expansion from 6 ppt to 38% in CY24. The stock trades at a 41x 1-yr rolling fwd. P/E, and its peak valuation over the past seven years Has been around 55x. The multiple is expected to come up again – the rate on the prospects for substantial ROE expansion.”
On its suggestion to positional investors with regard to this Rakesh Jhunjhunwala Portfolio stock, the Yes Securities report says, “We repeat the BUY and raise the 12-month price target. 4100 (before 3750).
Rakesh Jhunjhunwala’s stake in CRISIL
Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala have a stake in CRISIL. As per the shareholding pattern of this rating agency company for Q4FY22, Rakesh Jhunjhunwala holds 21,29,250 CRISIL shares, which is 2.92 per cent of the total paid-up capital of the company, while his wife Rekha Jhunjhunwala holds 18,70,750 CRISIL shares or 2.56 per cent. are per share. 100% stake in the company.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.