CRISIL - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.6

📉 CRISIL is a fundamentally strong stock with excellent return ratios, but weak technical momentum and recent earnings decline limit short-term upside. Entry near ₹4,750 is optimal. If already held, consider exiting around ₹4,950–₹5,050.

📈 Positive

• 📊 ROCE of 39.0% and ROE of 36.5% reflect exceptional capital efficiency.
• 📉 Debt-to-equity ratio of 0.12 indicates a low-leverage balance sheet.
• 💰 Dividend Yield of 0.52% adds to total return potential.
• 📈 MACD at 19.0 suggests early bullish crossover potential.
• 📈 EPS of ₹91.3 supports long-term valuation strength.

⚠️ Limitation

• 📉 RSI at 44.4 indicates neutral momentum, not yet bullish.
• 📉 Trading below DMA 50 (₹4,925) and DMA 200 (₹5,045) confirms short-term weakness.
• 📉 Quarterly PAT dropped from ₹194 Cr. to ₹137 Cr. (↓29.4%).
• 📉 FII holding declined by 0.27%, showing cautious foreign sentiment.
• 💸 PEG ratio of 4.81 and P/E of 52.5 vs industry average of 30.8 suggest overvaluation.

📉 Company Negative News

• 📉 CRISIL reported a sharp drop in quarterly profit due to lower demand for ratings and research services.
• 📉 Analysts flagged margin pressure and slower client onboarding in advisory segments.

📈 Company Positive News

• 📈 CRISIL remains a market leader in credit ratings and financial analytics with strong brand equity.
• 📈 Management expects recovery in H2 driven by regulatory tailwinds and demand for ESG and risk services.

📊 Industry

• 📊 The financial services analytics and ratings industry is cyclical, benefiting from credit growth and regulatory expansion.
• 📊 Industry P/E of 30.8 reflects moderate valuation across peers.

✅ Conclusion

• 📉 CRISIL is a moderate swing trade candidate with strong fundamentals but weak technicals and earnings pressure.
• 📉 Optimal entry price: ₹4,750–₹4,770 (near support and below DMA 50).
• 📈 Exit target: ₹4,950–₹5,050 (approaching resistance and psychological level).
• 📌 Watch for RSI crossing 50 and MACD strengthening for confirmation before entry.

I can compare CRISIL’s setup with other financial analytics stocks to help refine your swing strategy.