CRISIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | CRISIL | Market Cap | 31,363 Cr. | Current Price | 4,289 ₹ | High / Low | 6,330 ₹ |
| Stock P/E | 52.4 | Book Value | 277 ₹ | Dividend Yield | 0.58 % | ROCE | 31.9 % |
| ROE | 29.5 % | Face Value | 1.00 ₹ | DMA 50 | 4,231 ₹ | DMA 200 | 4,563 ₹ |
| Chg in FII Hold | -0.49 % | Chg in DII Hold | 0.52 % | PAT Qtr | 113 Cr. | PAT Prev Qtr | 153 Cr. |
| RSI | 57.1 | MACD | 56.5 | Volume | 61,906 | Avg Vol 1Wk | 53,878 |
| Low price | 3,686 ₹ | High price | 6,330 ₹ | PEG Ratio | 3.35 | Debt to equity | 0.12 |
| 52w Index | 22.8 % | Qtr Profit Var | -12.6 % | EPS | 81.8 ₹ | Industry PE | 32.7 |
📊 CRISIL Ltd (CRISIL) demonstrates strong fundamentals with ROCE at 31.9% and ROE at 29.5%, reflecting excellent efficiency. Debt-to-equity at 0.12 highlights a low-leverage balance sheet. EPS of 81.8 ₹ supports profitability, while dividend yield of 0.58% adds modest shareholder value. However, valuations are stretched with a P/E of 52.4 vs industry average of 32.7, and PEG ratio of 3.35 suggests overvaluation relative to growth. Quarterly PAT declined from 153 Cr. to 113 Cr. (-12.6%), showing earnings pressure. Overall, CRISIL’s strong brand in credit ratings and research provides competitive advantage, but valuation risks limit near-term upside.
💡 Entry Zone: 4,150–4,250 ₹ (near 50 DMA support).
📈 Long-Term Holding Guidance: Attractive for long-term investors due to strong fundamentals and low debt. Accumulate gradually near support zones and hold for 24+ months, while monitoring earnings stability and valuation compression.
✅ Positive
- Strong ROCE (31.9%) and ROE (29.5%) highlight excellent efficiency.
- Low debt-to-equity ratio (0.12) ensures financial resilience.
- EPS of 81.8 ₹ supports earnings visibility.
- DII holdings increased (+0.52%), showing domestic institutional support.
⚠️ Limitation
- High P/E (52.4) vs industry average (32.7).
- PEG ratio of 3.35 indicates overvaluation relative to growth.
- Quarterly PAT decline (-12.6%) reflects earnings pressure.
- Dividend yield of 0.58% is modest.
📉 Company Negative News
- FII holdings declined (-0.49%), reflecting reduced foreign investor confidence.
- Sequential profit decline (153 Cr. → 113 Cr.) raises concerns.
📈 Company Positive News
- DII holdings increased (+0.52%), showing domestic institutional support.
- MACD (56.5) and RSI (57.1) indicate bullish momentum.
- Strong brand leadership in credit ratings and research.
🏭 Industry
- Financial services and rating industry benefits from regulatory demand and corporate credit growth.
- Industry P/E at 32.7 highlights moderate valuations compared to CRISIL’s premium.
🔎 Conclusion
⚖️ CRISIL Ltd is a fundamentally strong company with excellent efficiency and low debt, but stretched valuations and declining profits limit near-term upside. Entry near 4,150–4,250 ₹ offers a favorable risk-reward setup. Best suited for long-term investors willing to accumulate gradually and hold for 24+ months, with profit booking near 4,400–4,450 ₹ if resistance levels are tested.