CRISIL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of CRISIL Ltd, India’s leading credit rating and financial analytics firm, backed by S&P Global. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹100 — robust earnings base

PAT Qtr: ₹194 Cr vs ₹130 Cr — +51.4% QoQ, strong earnings acceleration

ROE: 36.5%, ROCE: 39.0% — elite-level capital efficiency

Debt-to-equity: 0.12 — low leverage, excellent financial discipline

Dividend & Cash Flow

Dividend Yield: 0.18% — modest, but consistent

Interim dividend of ₹9/share declared in July 2025

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Strong free cash flows from subscription-based and advisory services

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 50.2 Overvalued vs industry PE of 36.9

P/B Ratio ~18.5 High premium to book value

PEG Ratio 4.60 Overvalued relative to earnings growth

Intrinsic Value ~₹4,800–₹4,950 Trading slightly above fair value

Valuation is rich, reflecting CRISIL’s brand strength and consistent performance, but PEG suggests limited short-term upside.

🧭 Business Model & Competitive Edge

Industry: Financial analytics & credit ratings — high-margin, IP-driven

Moat

Market leader in credit ratings, risk analytics, and benchmarking

Strong parentage via S&P Global ensures global best practices

Diversified revenue from ratings, research, and advisory

Catalysts

Investment in Online PSB Loans Ltd to expand fintech footprint

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Machine learning and AI integration into analytics platforms

5-year return of 248.2%, with 10.3% quarterly revenue growth and 20.5% profit margin

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CRISIL is a high-quality compounder with strong brand equity and scalable IP-driven services.

📉 Technical & Entry Zone

Current Price: ₹5,023

DMA 50/200: Trading below both — mild bearish trend

MACD: -79.3 — negative momentum

RSI: 42.3 — approaching oversold zone

📌 Suggested Entry Zone: ₹4,800–₹4,950

This range aligns with intrinsic value and technical support. Accumulate on dips for long-term exposure.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for consistent compounding and sector leadership

Buy on dips near ₹4,900 if bullish on financial analytics and credit growth

2025 Target Price: ₹5,192–₹5,299

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2030 Forecast: ₹7,200+ if growth in fintech and analytics scales as projected

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⭐ Fundamental Rating

4.3

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stockanalysis.com

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stockpricearchive.com

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dailybulls.in

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