Budget 2021 Stocks With Anil Singhvi – Market Guru recommends BUY on CARE Ratings; lists these 3 MAJOR reasons why

Top Stock to Buy with Anil Singhvi – CARE Ratings: In line with Zee Business' endeavor to bring a top Budget 2021 pick on a regular basis, today we bring another stock that would earn bumper returns for the investors till Budget 2021 is announced and also beyond it. Senior Research Analyst Varun Dubey picks Care Ratings as he tells Managing Editor Anil Singhvi why this stock is poised for high growth.   

Dubey said that this rating agency CARE Ratings is in his focus now. This is a top rating agency and the investors are advised to keep an eye on this stock.

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This is the only rating agency in India which gives a full-service rating, he said. It has in its list, banks, private and public sector companies and has operations in countries like Japan and Russia. CARE Ratings has 29 per cent market share in India. The second quarter results in FY21 were strong. It has been able to deliver consistently over a three-year period which is likely to continue, going forward. 

The growth in CARE Ratings comes from the ‘Aatmanirbhar Bharat’ theme and this company will be a likely beneficiary as more companies are set up in India. He said that many of those companies will be rated by this company. The expansion in SME segment is also expected to directly benefit CARE Ratings.      

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आपके बजट में सस्ता शेयर : केयर रेटिंग्स करेगा आपके पोर्टफोलियो की केयर...

सेक्टर का भी सबसे सस्ता शेयर....जानिए अनिल सिंघवी ने किन 3 वजहों से जताया बड़ी तेजी का भरोसा...#BudgetOnZee #Budget2021 @AnilSinghvi_ @VarunDubey85 pic.twitter.com/M3LZcC5TWa

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CARE Ratings Stock Valuations 

The dividend yield of CARE Ratings is 5.9 per cent and this stock is available at a PE multiple of 19 which is significantly lower from the industry average of 41. The 52-week high is Rs 720 and the lifetime high is around Rs 1800. The stock is trading way below that mark at round Rs 540. This is a good turnaround story and is worth a buy, Dubey reiterated.  

Anil Singhvi’s View on CARE Ratings  

The Market Guru called this an excellent stock and said that a stock of Rs 1800 is currently available at a price of Rs 540. The game changer for this company is the appointment of Ajay Mahajan who has taken over as the Managing Director (MD) and Chief Executive Officer (CEO), he said. He said that CARE Ratings stock had potential to reach around Rs 2000 in next two quarters. He has been bringing in a lot of changes. The other plus is the valuations as it is available at half the industry valuations, Singhvi said.  

He further said that the growth outlook for CARE Ratings is excellent. They have made their expertise in MSMEs and small companies where there are tremendous growth opportunities.