Amey Kulkarni of Candor Investing presented his in-depth investment thesis on CARE Ratings (India: CARERATING) at Asian Investing Summit 2021.
CARE Ratings is a debt-free, non-commodity, oligopolistic business at the start of a cyclical upturn, available at a cheap valuation.
Credit rating agencies are market infrastructure entities in India and are tightly regulated by SEBI (Securities & Exchange Board of India). Financial institutions, banks, and debt investors rely on credit rating agencies to make pricing and investment decisions. The credit rating market tends to be oligopolistic in nature; in India, the top five players control the bulk of market share.
CARE Ratings is the second-largest credit rating agency in India, with 18% market share. This ranks behind CRISIL (46% share) but ahead of ICRA (18%), India Ratings (12%), and Brickwork ratings (6%).
Headline issues have affected CARE Ratings, resulting in a below-average P/E ratio of 16x, as compared to CRISIL’s 37x and ICRA’s 34x. Amey believes that the key issues have been adequately addressed and that CARE’s discount valuation is unwarranted.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Amey Kulkarni operates a boutique investment advisory that partners with select individuals and family offices in their journey of wealth creation through investments in the Indian equity markets
Amey worked in the corporate sector for a decade with experience spanning across India, Europe and African markets. Amey has also worked closely with the top management of L&T (Chairman’s office) and the MD&CEO office at Jindal Steel & Power handling responsibilities of corporate strategy and business planning.
Having gained unique insights into the internal workings of large diversified businesses from close quarters, Amey now applies the learnings to run an investment fund at Candor Investing.
At Candor Investing, Amey invests in companies that don’t require external capital, have the ability to grow for a long time and are run by honest and hungry management.
Being passionate about sharing the learnings and insights gained out of his investment experience, Amey occasionally takes up visiting faculty assignments at various Indian business schools. He is also a contributing author to the Moneylife Magazine which is renowned for pointing out corporate governance issues and championing investor awareness campaigns.
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team