CRISIL - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• ROCE of 39.0% and ROE of 36.5% — excellent capital efficiency and profitability.
• Debt-to-equity ratio of 0.12 — low leverage, indicating financial prudence.
• EPS of ₹91.3 — strong earnings base supporting valuation.
• MACD positive at 34.7 and RSI at 56.8 — neutral to bullish technical indicators.
• DII holding increased by 0.11% — reflects domestic institutional confidence.
• Trading near DMA 50 and DMA 200 — suggests consolidation and potential support.

⚠️ Limitation

• P/E ratio of 54.0 vs industry average of 31.0 — significantly overvalued.
• PEG ratio of 4.95 — valuation not aligned with earnings growth.
• Book Value of ₹271 vs current price of ₹4,933 — high P/B ratio.
• Dividend yield of 0.50% — modest for income-focused investors.
• FII holding declined by 0.27% — indicates mild foreign investor caution.
• Volume below average — may reflect short-term disinterest.

📉 Company Negative News

• Q2 PAT declined to ₹137 Cr from ₹194 Cr — a 31.7% drop sequentially.
• Stock corrected ~29.1% from its 52-week high of ₹6,955.
• FII outflows amid valuation concerns and profit booking.

📢 Company Positive News

• Strong brand leadership in credit ratings, risk analytics, and financial research.
• Backed by S&P Global — strategic advantage in global markets and credibility.
• Stock up 33.9% over the past year — reflects long-term investor confidence.

🏭 Industry

• Financial analytics and credit rating industry benefits from regulatory expansion and data-driven decision-making.
• Industry P/E of 31.0 — CRISIL trades at a premium, reflecting its leadership and brand strength.
• Sector faces cyclical demand and regulatory dependency risks.

🧾 Conclusion

• Business Model: Premier provider of credit ratings, research, and risk solutions with a global footprint.
• Competitive Advantage: Strong brand equity, diversified service offerings, and S&P Global backing.
• Entry Zone: ₹4,700–₹4,900 — near DMA support and consolidation range.
• Long-Term Holding: Suitable for quality-focused investors with a 5+ year horizon seeking exposure to financial services and analytics.