CRISIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | CRISIL | Market Cap | 29,814 Cr. | Current Price | 4,079 ₹ | High / Low | 6,330 ₹ |
| Stock P/E | 49.8 | Book Value | 277 ₹ | Dividend Yield | 0.61 % | ROCE | 31.9 % |
| ROE | 29.5 % | Face Value | 1.00 ₹ | DMA 50 | 4,184 ₹ | DMA 200 | 4,503 ₹ |
| Chg in FII Hold | -0.49 % | Chg in DII Hold | 0.52 % | PAT Qtr | 113 Cr. | PAT Prev Qtr | 153 Cr. |
| RSI | 45.3 | MACD | -10.4 | Volume | 37,047 | Avg Vol 1Wk | 43,898 |
| Low price | 3,686 ₹ | High price | 6,330 ₹ | PEG Ratio | 3.18 | Debt to equity | 0.12 |
| 52w Index | 14.9 % | Qtr Profit Var | -12.6 % | EPS | 81.8 ₹ | Industry PE | 36.4 |
📊 Financial Overview: CRISIL Ltd (CRISIL) has a market cap of ₹29,814 Cr. Quarterly PAT declined to ₹113 Cr from ₹153 Cr, reflecting earnings pressure. Debt-to-equity ratio is low at 0.12, indicating minimal leverage. ROCE at 31.9% and ROE at 29.5% highlight strong efficiency. Cash flows remain supported by credit ratings, research, and advisory services, though profitability has softened.
💹 Valuation Indicators: Current P/E of 49.8 is above the industry average of 36.4, suggesting overvaluation. P/B ratio is ~14.7 (4079 ÷ 277), which is elevated. PEG ratio of 3.18 indicates expensive growth. Intrinsic value appears lower than current price, making the stock richly valued despite strong fundamentals.
🏭 Business Model & Advantage: CRISIL operates in credit ratings, research, risk, and advisory services. Its competitive advantage lies in brand reputation, global reach through S&P, and diversified offerings. However, earnings volatility and premium valuations limit near-term attractiveness.
📈 Entry Zone: A favorable entry zone would be around ₹3,800–4,000, closer to its recent low of ₹3,686 and below DMA levels. Current price of ₹4,079 is slightly above fair value, so accumulation is better on dips.
⏳ Long-Term Holding Guidance: CRISIL is structurally strong with brand leadership, diversified services, and high return ratios. Long-term investors may hold confidently, but fresh entry should be cautious given stretched valuations and recent earnings decline.
Positive
- 🌟 Strong ROCE (31.9%) and ROE (29.5%).
- 🌟 Debt-light balance sheet (Debt-to-equity 0.12).
- 🌟 DII holdings increased by 0.52%.
Limitation
- ⚠️ High P/E (49.8) compared to industry average (36.4).
- ⚠️ Elevated P/B ratio (~14.7).
- ⚠️ PEG ratio of 3.18 indicates expensive growth.
Company Negative News
- 📉 Quarterly PAT decline from ₹153 Cr to ₹113 Cr (-12.6%).
- 📉 FII holdings reduced by 0.49%.
- 📉 Technical weakness with RSI at 45.3 and MACD negative (-10.4).
Company Positive News
- 📈 Strong brand reputation and global reach via S&P.
- 📈 DII holdings increased by 0.52%.
- 📈 Diversified services in ratings, research, and advisory.
Industry
- 🏭 Financial services and credit rating industry is expanding with rising demand for risk management and advisory.
- 🏭 Industry P/E at 36.4 shows moderate valuation compared to CRISIL’s premium.
- 🏭 Competition remains strong with ICRA and CARE Ratings.
Conclusion
✅ CRISIL is a market leader in ratings and advisory with strong return ratios and global reach. However, valuations are stretched and earnings have softened. Suitable for long-term holding, with accumulation recommended around ₹3,800–4,000 levels.
For deeper insights, you could explore a peer comparison or a technical chart analysis to complement this fundamental view.