Timing it right

Looks like Roopa Kudva, too, is riding the momentum in the markets with the stock of Crisil up 25% for the June quarter against 3% for the benchmark Sensex. The managing director and CEO of the ratings major, which has more than 50% share of the bank loans rating market, has sold 160,000 shares of her total holding of 184,000 shares for ₹19 crore as the stock hit a 52-week high following a robust second quarter performance. Kudva offloaded the shares in the open market on July 24, two days after Crisil announced its numbers: an over 38% rise in consolidated net profit to ₹60 crore, while revenues were up 23% to ₹266 crore. Following the stake sale, which came at an average price of ₹1,186 a share, just shy of the stock’s 52-week high of ₹1,188, Kudva’s stake has fallen to 0.03% from 0.26%.

Incidentally, the other big investors in the stock are Rakesh Jhunjhunwala, who holds 6.85%, and Radhakisan Damani through Bright Star Investments, who holds 1.15% as of end-June. The ratings agency has been on a strong footing ever since it diversified its portfolio beyond the ratings business to the research arena. In fact, parent McGraw-Hill is making an open offer at ₹1,201 a share to increase its holding from 53% to around 75%. During the current fiscal, analysts expect sales and profit after tax to grow by 19% and 22%, respectively.