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CRISIL - Fundamental Analysis: Financial Health & Valuation

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Rating: 4.1

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental Rating: 4.1

Stock Code CRISIL Market Cap 29,502 Cr. Current Price 4,035 ₹ High / Low 6,330 ₹
Stock P/E 48.0 Book Value 277 ₹ Dividend Yield 0.89 % ROCE 34.0 %
ROE 32.2 % Face Value 1.00 ₹ DMA 50 4,435 ₹ DMA 200 4,711 ₹
Chg in FII Hold -0.14 % Chg in DII Hold -0.08 % PAT Qtr 153 Cr. PAT Prev Qtr 137 Cr.
RSI 31.4 MACD -137 Volume 72,646 Avg Vol 1Wk 49,703
Low price 3,894 ₹ High price 6,330 ₹ PEG Ratio 2.50 Debt to equity 0.12
52w Index 5.79 % Qtr Profit Var -25.6 % EPS 84.1 ₹ Industry PE 36.7

📊 Financials

  • Revenue Growth: PAT improved from 137 Cr. to 153 Cr., but quarterly profit variation (-25.6%) shows volatility
  • Profit Margins: EPS at 84.1 ₹, strong profitability
  • Debt Ratios: Debt-to-Equity 0.12, very low leverage
  • Cash Flows: Supported by steady financial services demand
  • Return Metrics: ROE 32.2%, ROCE 34.0% — excellent efficiency

💹 Valuation

  • P/E Ratio: 48.0 (premium vs Industry PE 36.7)
  • P/B Ratio: ~14.6 (high, reflects brand strength)
  • PEG Ratio: 2.50 (suggests moderate overvaluation relative to growth)
  • Intrinsic Value: Current price (4,035 ₹) below DMA 50 (4,435 ₹) & DMA 200 (4,711 ₹), showing technical weakness

🏢 Business Model & Competitive Advantage

  • Leading provider of ratings, research, and risk advisory services
  • Competitive advantage in brand reputation and global reach
  • Strong efficiency ratios highlight operational excellence
  • Valuation stretched despite consistent earnings

📈 Entry Zone Recommendation

  • Entry Zone: 3,950–4,100 ₹ (near support levels, RSI at 31.4 indicates oversold)
  • Long-Term Holding: Attractive due to strong fundamentals and brand dominance, but caution due to premium valuation

✅ Positive

  • Strong ROE (32.2%) and ROCE (34.0%)
  • Debt-to-equity ratio very low (0.12)
  • Consistent PAT growth over time
  • Strong brand presence in financial services

⚠️ Limitation

  • High P/E ratio compared to industry
  • PEG ratio suggests overvaluation
  • Stock trading below DMA 50 & 200, showing weakness

📉 Company Negative News

  • FII holding decreased (-0.14%)
  • DII holding decreased (-0.08%)
  • Technical weakness with MACD negative (-137)

📈 Company Positive News

  • Quarterly PAT improved sequentially
  • Strong efficiency ratios support investor confidence

🏭 Industry

  • Financial services and rating industry growing steadily with demand for risk management
  • Industry PE at 36.7, CRISIL trades at a premium

🔎 Conclusion

CRISIL is a leading financial services company with excellent return ratios and strong brand equity. Despite consistent profitability, valuations are stretched with a P/E of 48.0 and PEG of 2.50. Entry around 3,950–4,100 ₹ may be considered, and long-term investors can hold for brand-driven growth and stability, while monitoring valuation risks and institutional activity.

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