CRISIL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

CRISIL, a pillar in India’s analytics and credit rating landscape, has a solid business model and elite return ratios—but a spicy valuation requires measured steps. Let's decode

🧾 Core Financials

EPS: ₹99.5 — strong earnings power for a knowledge-based business.

ROE: 27.8% | ROCE: 35.6% — exceptional returns; capital is used efficiently.

PAT Growth: ₹172 Cr vs ₹160 Cr — +14.3% QoQ, not explosive, but steadily upward.

Debt-to-Equity: 0.11 — clean, low-leverage balance sheet.

Dividend Yield: 0.17% — conservative payout, consistent with reinvestment strategy.

💹 Valuation Overview

P/E: 53.5 vs Industry PE: 31.8 — premium pricing for a premium brand.

P/B Ratio: ~13.8 (₹5,314 ÷ ₹385) — indicates high market expectations.

PEG Ratio: 3.34 — elevated; price outpaces growth, calls for caution.

Estimated Intrinsic Value: ₹4,600–₹4,900 — current price is slightly overvalued with technical weakness setting in.

🏢 Business Model & Competitive Edge

Sector: Credit ratings, research, risk & analytics, benchmarking.

Strengths

Market leader with deep relationships across BFSI.

Part of S&P Global – global reach and credibility.

Scalable data-driven research platforms.

Challenges

Growth in ratings business tied to debt issuances.

High competition from ICRA, CARE Ratings, and new fintech disruptors.

Valuation leaves limited room for error.

📉 Technical & Sentiment Indicators

RSI: 31.0 — flirting with oversold territory; technical bounce possible.

MACD: -40.8 — bearish momentum; wait-and-watch advised.

Volume Below Average — fading interest, cooling off after earlier surge.

🎯 Suggested Entry Zone

₹4,600–₹4,850: Better valuation comfort, especially as RSI turns around.

Avoid chasing unless bullish signals return or fundamentals dramatically strengthen.

🧭 Long-Term Holding Outlook

Ideal for 5+ year conviction holders seeking

Exposure to India’s evolving credit, compliance, and data economy.

Consistent cash generation and superior returns on capital.

Low cyclicality and high institutional relevance.

A classic compounder—just make sure the entry isn’t too rich. Want to pit it against peers like ICRA or new-age data firms? I’ll crunch it out for you. 📊🔍📈

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