Edelweiss Research has downgraded ICRA to 'Hold' from 'Buy' with target price of Rs 2,830 in its report.

Commenting on the investment rationale, the stock broker said, "ICRA reported decent revenue growth of 17% YoY in Q1FY15. Ratings grew a healthy 15% YoY led by debt ratings, bank loans and SME ratings.

With Moody's now a 50% stakeholder, we envisage strong outsourced ratings growth for ICRA. This, along with the robust structural opportunity in the domestic debt market induces us to further revise our multiple from 22x to 26x FY16E (10% discount to CRISIL) and also our FY16E earnings up 4%.

However, as valuations are factoring in the medium-term upside, we downgrade our recommendation to 'Hold' from 'Buy' with a revised target price of Rs 2,830 (Rs 2,300 earlier).'' 

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