CRISIL Event Update; Evalueserve news; CRISIL's rich valuation justified; Accumulate; Target: Rs1,050

[Emkay Equity Advisory]

Event Update (December 12, 2012)

Event Update   CRISIL Reco: ACCUMULATE CMP: Rs 1030 Target Price: Rs 1050 Evalueserve news; CRISIL’s rich valuation justified ·      Unconfirmed media reports suggest that promoter of Evalueserve (EVS), a KPO firm is looking to sell its stake at valuation of 12-15x CY11 EV/ EBIDTA or $250mn ·      CRISIL trades at a higher EV/ EBIDTA of 26x CY11 which is justified, given its presence in more value added analytics, 25% higher rev/ employee, higher margins and RoCE ·      CRISIL runs much profitable model with EBIDTA per employee in research business higher at USD16,500 vs. USD7,000 for EVS ·      At CMP, CRISIL trades at 26x CY13 EPS with RoE/ RoIC in excess of 50%/ 100% respectively. Maintain ACCUMULATE with price target of Rs1,050     Click here to read report: Event Update

 

 

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