CARE

Credit Analysis and Research (CARE), had met with overwhelming response when it had gone public in Dec’12. The company had raised Rs.540 crore in an IPO that was over-subscribed by nearly 41 times. The IPO price was Rs.750 and it got listed at huge 25% premium over the listing price. Despite the new low it hit post earnings, it remains well above the IPO price. The company posted a net profit of Rs.29 crore on a total income of Rs.53 crore. The comparable numbers for the year-ago period is not available. The company added 1,559 new rating assignments in Q3 v/s 1,177 in the year-ago period. It added around 1,725 new clients during the 9 month period of which 626 were added during Q3 of FY13.

The numbers were declared before RBI cut rates and then it had said that the overall credit rating scenario in the subdued economy was challenging and had made some observations, which spooked the market. But post the RBI rate cut, it is expected that many investments which have been on a hold will now get revived and business could once again start looking good for rating agencies like CARE. For those with a long term perspective, it is a good stock to buy at every dip.