Here’s a tip from Crisil: go for the stake in CARE Ratings. Crisil shares trade at a ridiculous valuation of over 43 times one-year forward earnings; while the CARE Ratings stake was bought at around 30.5 times earnings. The share of ratings business in Crisil’s total revenue has been falling and is now about 30%, while for CARE Ratings, revenues primarily come from its ratings business. In contrast, CARE Ratings’ revenues are mainly from the ratings business, of which a large portion is from bank loan ratings. CARE Ratings reported significantly lower ratings revenue growth of 1.5%.

Source: Mint June 30, 2017 01:52 UTC