INSUBCONTINENT EXCLUSIVE:
Mumbai: Shares of CRISIL, CARE Ratings and ICRA have climbed lately after closure of the adjudication proceedings against these rating
market seen benefiting the industry that assesses creditworthiness.
Shares of CARE Ratings rallied 39 per cent in the last five trading
sessions, while CRISIL shares gained 5 per cent in this period
ICRA gained about 9 per cent.
The Securities and Exchange Board of India (Sebi) late last week fined ICRA, India Ratings and Research and
CARE Rs 25 lakh each for not exercising due-diligence and failing to take timely rating actions on IL-FS
ratings.
Shares of CARE Ratings declined 51 per cent between January and November while ICRA lost 12 per cent in this period.
Separately, a
recent Reserve Bank of India (RBI) task force report called for an active secondary market for corporate loans
Such an active secondary market would spawn an active corporate bond market, ultimately benefiting the rating agencies, analysts
five-year average PE of 46, while CARE Ratings trades at 17 times, compared with the fiveyear average PE of 26
Similarly, ICRA trades at 31 times its FY21 PE against the five-year average PE of 44
analyst, IIFL Securities.
