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ICRA Ltd. Stock Analysis

Small Cap
Evaluated by 2408 users | BSE: 532835 | NSE: ICRA |
Ratings
ICRA was established in 1991 by leading financial or investment institutions, commercial banks and financial services companies. It was formerly known as Investment Information and Credit Rating Agency of India. The Public Limited Company has its shares listed on the Bombay Stock Exchange...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
ICRA Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 19.45%15.52%15.54%15.72%13.08%15.1%15.09%14.36%14.91%14.11%
Value Creation Index 0.830.480.340.360.130.300.300.240.29NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 193207251283322341333309328321
Y-o-Y Gr. Rt.-7.5%21.2%12.6%13.8%6%-2.4%-7.3%6.2%-2.1%
Adjusted EPS (Rs.) 46.5843.3350.1558.2853.8368.8278.2387.38100.3196.99
Y-o-Y Gr. Rt.--7%15.7%16.2%-7.6%27.9%13.7%11.7%14.8%-3.3%
Book Value per Share (Rs.) 249.54285.46325.69380.72423.05471.46552.21660.43664.04726.97
Adjusted Net Profit 46.643.350.258.353.868.877.586.596.893.6
Net Op. Cash Flow (Rs. Cr.) 47.739.22499.76771.263.461.980.921.3
Debt to Cash Flow from Ops 0000.170.1500000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
ICRA Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.8%-0.1%-1.2%-2.1%
Adjusted EPS 8.5%12.5%7.4%-3.3%
Book Value per Share 12.611.49.69.5
Share Price 13.4% -6.2% -10.9% 9.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 19.4615.5115.6516.0313.1815.2115.1114.3714.9413.94
Operating Profit Margin (%) 34.1130.1523.8130.3227.2429.6530.7837.2734.4329.91
Net Profit Margin (%) 24.1120.8219.8120.5916.7620.2323.3228.1729.6829.48
Debt to Equity 0000.040.0200000
Working Capital Days 170118121124116122122158168166
Cash Conversion Cycle 54535249444028262327
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.87%
Institutions 39.73%
Non-Institutions 8.07%
Others 0.33%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of ICRA Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that ICRA Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of ICRA Ltd.'s performance infers:

ICRA Ltd. earnings have grown by 12.5%, whereas share price has depreciated -6.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of ICRA Ltd. share prices over the last 10 years. Here is what we found out:

ICRA Ltd. share price has depreciated 7.4% annually over the past ten years.

ICRA was established in 1991 by leading financial or investment institutions, commercial banks and financial services companies. It was formerly known as Investment Information and Credit Rating Agency of India. The Public Limited Company has its shares listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder. The participation of Moody’s is supported

ICRA was established in 1991 by leading financial or investment institutions, commercial banks and financial services companies. It was formerly known as Investment Information and Credit Rating Agency of India. The Public Limited Company has its shares listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The international Credit Rating Agency Moody’s Investors Service is ICRA’s largest shareholder. The participation of Moody’s is supported by a Technical Services Agreement, which entails Moody’s providing certain high-value technical services to ICRA.

The agreement is aimed at benefiting ICRA’s in-house research capabilities, and providing it with access to Moody’s global research base. Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA).

ICRA provides information and guidance to institutional and individual investors/creditors, enhances the ability of borrowers/issuers to access the money market and the capital market for tapping a larger volume of resources from a wider range of the investing public, assists regulators in promoting transparency in the financial markets and provides intermediaries with a tool to improve efficiency in the funds raising process.

The company has dedicated teams for Monetary, Fiscal, Industry and Sector research, and a panel of advisors to enhance its in-house capabilities. Its research base enables the company to maintain highest standards of quality and credibility.

Range of Services

a) Rating Services -

As an early entrant in the Credit Rating business, ICRA is one of the most experienced Credit Rating Agencies in the country today. ICRA rates rupee denominated debt instruments issued by manufacturing companies, commercial banks, non-banking finance companies, financial institutions, public sector undertakings and municipalities, among others.

It also rates structured obligations and sector-specific debt obligations such as instruments issued by Power, Telecom and Infrastructure companies. The other services offered include Corporate Governance Rating, Stakeholder Value and Governance Rating, Credit Risk Rating of Debt Mutual Funds, Rating of Claims Paying Ability of Insurance Companies, Project Finance Rating, and Line of Credit Rating. ICRA, along with National Small Industries Corporation (NSIC), had launched a Performance and Credit Rating Scheme for Small Scale Enterprises in India aimed at enabling Small and Medium Enterprises (SMEs) improve their access to institutional credit, increase their competitiveness, and raise their market standing.

b) Grading Services -

The Grading Services offered by ICRA employ pioneering concepts and methodologies, and include grading of: Construction Entities; Real Estate Developers and Projects; Healthcare Entities; Maritime Training Institutes; and Initial Public Offers (IPOs).

The Grading of Construction Entities seeks to provide an independent opinion on the quality of performance of the entities graded. Similarly, the grading of real estate developers and projects seeks to make property buyers aware of the risks associated with real estate projects and with the developer’s ability to deliver in accordance with the terms agreed. ICRA’s Healthcare Gradings present an independent opinion on the quality of care provided by healthcare entities. In the education sector, ICRA offers the innovative service of Grading of Maritime Training Institutes in India. In IPO Grading, an ICRA-assigned IPO Grade represents a relative assessment of the “fundamentals” of the issue Graded in relation to the universe of other listed equity securities in India.

c) Information Services -

The Information Services Division focuses on providing authentic data and value-added products used by intermediaries, financial institutions, banks, asset managers, institutional and individual investors, and others. The division's portfolio of products includes sector/industry-specific studies/publications and mandate-based studies (customized research).

Group Companies:

  • ICRA Management Consulting Services Limited (IMaCS) - A multi-line consulting firm with a global operating footprint. IMaCS offers consulting services in Strategy, Risk Management, Regulatory Economics, Transaction Advisory, and Process Re-engineering.
  • ICRA Techno Analytics (ICTEAS) – A subsidiary of ICRA offering a complete portfolio of Information Technology (IT) solutions to meet the dynamic needs of present-day businesses. The services range from the traditional development of client-server, web-centric and mobile applications to the generation of cutting-edge business analytics. An in-depth knowledge of various technology areas, coupled with its strengths in various verticals, enables ICTEAS provide end-to-end services of excellent quality. ICTEAS uses a mix of onsite or offshore strategies to optimize bottom-line benefits for its customers. ICTEAS has two subsidiaries -- ICRA Techno Analytics and Axiom Technologies.
  • ICRA Online (Online - A leading information services, outsourcing solutions and technology solutions provider. Caters for some of the biggest names in the financial services sector in India and abroad, which is a testimony to its product quality, commitment and credibility. It has two Strategic Business Units (SBUs) -  The Information Services and Technology Solutions Division (MFI Division), and Knowledge Process Outsourcing Division (KPO Division).

Milestones:

-- 1991

  • ICRA launches Credit Rating Service on September 1, 1991.
  • Investment Information and Credit Rating Agency of India Limited (later renamed ICRA Limited) is incorporated on January 16, 1991. 

-- 1993

  • ICRA launches Investment Information Service and Research Publications.

-- 1995

  • ICRA launches the service of Credit Assessment for small and medium scale industries (under the Cluster Approach of the Confederation of Indian Industry).
  • Also launches the service of Earnings Prospects and Risk Analysis (EPRA) for the Equity Investors. 

-- 1996

  • ICRA signs an agreement with Financial Proformas Inc (FPI), now called Moody’s Risk Management Services to provide credit education, risk management software, credit research and consulting services to commercial banks, financial and investment institutions, financial services companies and mutual funds in India.

-- 1997

  • ICRA launches ICRA Bulletin: Money & Finance, a periodical publication directed towards institutions and individuals with an interest in understanding the reasons underlying policy initiatives and outcomes.

-- 1998

  • Moody’s Investors Service (Moody’s) and ICRA announce their mutual agreement to Moody’s picking up a minority stake in the equity capital of ICRA.
  • ICRA introduces a Rating Methodology for the Claims Paying Ability of General Insurance companies in India.

-- 1999

  • Moody’s Investors Service (Moody’s) and ICRA sign an agreement that enables Moody’s to make an equity investment in ICRA and provide technical services to it.
  • ICRA launches Grading Service for entities involved in construction projects including contractors, consultants, project owners and the project itself.
  • ICRA launches Rating service for Debt Fund Scheme of Indian Mutual Funds.
  • Becomes the first Indian Rating Agency to rate all Non-Life Insurance companies in the country.

-- 2001

  • Moody’s Investment Company India becomes the largest shareholder in ICRA by acquiring an additional 9% equity stake.
  • ICRA and the National Real Estate Development Council (NAREDCO) jointly launch the ICRA-Naredco Grading System for real estate developers and projects.
  • ICRA launches it’s Corporate Governance Ratings (CGR) for the Indian Market with focus on corporate’ business practices and quality of disclosure standards

-- 2002

  • ICRA launches a Grading Scheme for Healthcare institutions in India.

-- 2003

  • ICRA and Online IndiaCapital.com (currently known as ICRA Online) enters into a shareholder and Subscription Agreement, besides a Technical Services agreement
  •  ICRA Limited launches Project Finance Assessment/Rating Service.

-- 2004

  • ICRA enters into a ’Technical Services Agreement’ with Credit Rating & Collection, Kuwait on December 26, 2001 for a period of three years. The said agreement extended for a further period of three years with effect from December 26, 2004.
  • Moody’s Investment Company India increases its equity stake to 29% in ICRA.
  • ICRA launches the service of Grading of Maritime Training Institutes in India.
  • ICRA launches Outsourced Services Group.
  • ICRA launches the service of Grading of Mutual Fund Management Quality.

-- 2005

  • ICRA launches the NSIC-ICRA Performance and Credit Rating Scheme for Small Scale Enterprises in India.

-- 2006

  • ICRA acquires Computer Exchange (subsequently renamed as ICRA Techno Analytics).
  • ICRA acquires ICRA Online.
  • ICRA demerges its consulting division and transfers the same to ICRA Management Consulting Services with effect from April 1, 2005.

-- 2007

  • The equity share of ICRA gets listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on April 13, 2007.
  • Moody’s Investment Company India makes additional investments in the equity shares of ICRA.
  • ICRA renews its Technical Cooperation Agreement with the Credit Rating Agency of Bangladesh (CRAB) for another three years.

-- 2008

  • ICRA Management Consulting Services launches Consulting Services for Carbon management.
  • ICRA Management Consulting Services and Virtus Global Partners Inc. sign a Memorandum of Understanding to jointly offer advisory/consulting services to clients based in the USA and in India.
  • ICRA Techno Analytics acquires Kolkata-based software services company Axiom Technologies.
  • ICRA Management Consulting Services and Dun & Bradstreet Philippines, Inc. sign a Memorandum of Understanding to jointly offer advisory/consulting services in the Philippines.

-- 2009

  • ICRA Techno Analytics, New Jersey, USA, a wholly owned subsidiary of ICRA Techno Analytics (ICTEAS) acquires 100% stake in Sapphire International (Sapphire), a Delaware Corporation based out of Trumbull, Connecticut, USA.

--2010

  • PT. ICRA Indonesia obtains a License from the Capital Market and Financial Institutions Supervisory Agency, Indonesia (Bapepam-LK) to launch Rating Services in Indonesia

--2011

  • ICRA Lanka Limited granted registration to function as a Credit Rating Agency by the Securities and Exchange Commission of Sri Lanka
  • ICRA has been granted a letter of intent by the Securities Board of Nepal (SEBON) to establish a Credit Rating Agency in Nepal

--2012

  • ICRA Nepal Limited (ICRANepal) obtains licence from the Securities Board of Nepal (SEBON) to launch Rating Services in Nepal. ICRANepal is the first credit rating company granted licence by SEBON.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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