CRISIL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Rating: 3.7

CRISIL Ltd. is a fundamentally strong player in the financial analytics and ratings space, but its current valuation and technical indicators suggest caution for long-term investors. Here's a full breakdown

✅ Strengths for Long-Term Investment

Exceptional Profitability

ROCE: 35.6% — highly efficient capital deployment

ROE: 27.8% — strong shareholder returns

Consistent Earnings

EPS: ₹99.5 — robust earnings base

PAT Qtr: ₹172 Cr vs ₹160 Cr — 14.3% growth

Low Leverage

Debt-to-equity: 0.11 — minimal financial risk

Institutional Confidence

FII holding up 0.39% — foreign investors showing interest

⚠️ Valuation & Technical Concerns

Overvaluation Risks

P/E: 53.5 vs Industry PE of 31.8 — trading at a premium

PEG Ratio: 3.34 — suggests overvaluation relative to growth

Weak Momentum

RSI: 31.0 — nearing oversold territory

MACD: -40.8 — bearish crossover

Price below 50 DMA (₹5,587) and near 200 DMA (₹5,142) — trend reversal possible

Dividend Yield: 0.17% — not attractive for income investors

DII Holding Decline: -0.32% — slight dip in domestic investor sentiment

📈 Ideal Entry Price Zone

To reduce valuation risk, consider accumulating in the ₹4,900–₹5,100 range

This zone is near the 200 DMA and offers better margin of safety

RSI and MACD suggest weakness — wait for stabilization or reversal signals

🧭 Exit Strategy / Holding Period

If you're already holding the stock

Holding Period: 3–5 years to benefit from sector resilience and global expansion

Exit Strategy

Partial Exit near ₹6,800–₹6,950 (52-week high) if valuation remains stretched

Hold if ROE stays above 25% and PEG drops below 2.0

Monitor quarterly PAT and EPS — any stagnation may warrant trimming

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