The Credit Rating Information Services of India Ltd (Crisil) share was in the limelight today.
On the Bombay Stock Exchange, the stock hit a 52-week high of Rs 315 in intra-day trades, but settled at Rs 302.55, up 9.81 per cent over Wednesday's close. More than 29,000 stocks changed hands.
On the National Stock Exchange, the stock closed at Rs 302.90. In less than three months, the scrip rocketed 156 per cent from Rs 121 on December 27 2001 to current levels.
Crisil is the fifth-largest rating agency in the world and the biggest in India.
The world's largest rating agency, Standard & Poors, holds a 9.68 per cent equity stake in the company.
Recently, the company had announced its plans to foray into the nascent healthcare rating business wherein it would assign grades to hospitals, patients, healthcare insurance companies, third-party administrators and the government depending on the relative quality of healthcare to patients.
It had earlier entered into a tie-up with the Confederation of Indian Industry (CII) to come up with a grading system for the film industry too.
On the financial front, Crisil has been doing very well. For the quarter ended December 31 2001, Crisil posted a 21.07 per cent rise in net profit to Rs 5.46 crore compared with Rs 4.51 crore in the corresponding period last year.
Total income rose 24.40 per cent to Rs 16.64 crore as against Rs 13.37 crore.
Growth in its rating business in last quarter ended was primarily due to two reasons - decline in interest rates and the company's market position and business development initiatives.
Fall in interest rates has prompted many companies opted for refinancing of debt.
Thus, the demand for ratings were higher. Moreover, because of its market position and business development initiatives, Crisil was able to garner a large chunk of the business.
