Crisil - why is this one of the best stocks ?
Crisil - or Credit Rating and Information Services India Limited - assigns ratings to various financial instruments like bonds, debt and even mutual funds. Credit Rating Agencies like CRISIL are important for market efficiency because investors rely on their ratings for risk assessment. For e.g. if you want to buy bonds of a company or say even invest in a mutual fund, it would be very difficult for individual investors to conduct individual study. Crisil is a market leader in India with 60% market share in domestic bond market and 53% market share in bank loan market segment.Growth prospects and financial info
Crisil is currently trading at a P/E of 25 as I write this post. To check the latest P/E go to moneycontrol.com or BSE PLUS. Crisil sales have been growing at an alarming rate of about 80% in the past five years. Although this amount of growth may not be sustainable in the long term, as more and more companies want to raise capital through bond market, I expect CRISIL to grow at 30% or more. Crisil is a debt free company with operating profit margin of about 50%.
disclosure: I own this stock.
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