Investors accumulate ICRA for 1 yr. perspective!

ICRA looks very good in long-term bet. If you look at ICRA in the recent past what it is doing is its tying up with the mid size banks where the banks lack appraisal skills further, credit proposals and that's why they are insisting arrangement with ICRA that they have to get first rated from ICRA kind of agencies and they have taken ICRA as the preferred rating agency. So to that extent the business growth will be there from SME segment of these mid size banks to ICRA.

In the recent past the stipulation that IPOs also needs to have a rating which also adds to the business of ICRA apart from its regular rating business for debt instruments. And all put together we feel the company is also showing good numbers. In fact if you look at the March 07 numbers, the company showed a profit of Rs 16 crore on a turnover of almost Rs 46 crore, that's a fantastic number. But in terms of multiples if we speak it definitely looks expensive but one can gain on this in terms of news flows so in terms of fundamentals maybe if one has perspective of one year and above maybe they wii get good rewards from this counter.

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