CRISIL Limited (CRISIL) AI Stock Analysis

• Market Cap: ₹338.99B
• Dividend Yield: 1.25%
• Average Volume (3M): 1.18K
• Price to Earnings (P/E): 46.6
• Beta (1Y): 0.79
• Revenue Growth: 6.03%
• EPS Growth: 11.92%
• Country: IN
• Employees: 4,666
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 23.46
• Shares Outstanding: 73,130,020
• 10 Day Avg. Volume: 1,625
• 30 Day Avg. Volume: 1,184
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹4,450.00
• Price Target Upside: -4.00% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ₹5,645.00 ▲(21.78% Upside)

CRISIL Limited's strong financial performance is the most significant factor, reflecting robust revenue and profit growth, efficient cost management, and financial stability. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

CRISIL Limited Business Overview & Revenue Model

Company Description

CRISIL Limited, an analytical company, together with its subsidiaries, provides ratings, data, research, and analytics and solutions in India, Europe, North America, and internationally. It operates through three segments: Ratings, Research, and Advisory. The Ratings services segment offers credit ratings for corporates, banks, bank loans, and small and medium enterprises; credit analysis services; grading services; and analytical services. The Research segment provides research and risk solutions, industry reports, customized research assignments, subscription to data services, independent equity research, initial public offering grading, and training services. The Advisory segment offers advisory services; and a range of risk management tools, analytics, and solutions to financial institutions, banks, and corporates. The company was formerly known as The Credit Rating Information Services of India Limited and changed its name to CRISIL Limited in December 2003. CRISIL Limited was incorporated in 1987 and is headquartered in Mumbai, India.

How the Company Makes Money

CRISIL makes money through multiple revenue streams. The primary source of its revenue is the credit rating services it provides to financial institutions, corporations, and governments, which involves evaluating the creditworthiness of these entities. Another significant revenue stream comes from its research and risk advisory services, where CRISIL offers detailed market insights and risk management solutions. Additionally, the company generates income through its policy advisory services, helping clients with regulatory, strategic, and operational challenges. CRISIL's partnerships and collaborations with global entities such as S&P Global also contribute to its earnings, expanding its market reach and service offerings.

CRISIL Limited Financial Statement Overview

Summary

CRISIL Limited shows a strong financial position with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The company maintains a low leverage profile with a solid equity base, enhancing its financial stability. While free cash flow growth showed some volatility, overall, CRISIL demonstrates resilience and strong financial health.

Income Statement

CRISIL Limited demonstrates strong revenue growth with a stable increase from 2020 to 2024, reflecting a CAGR of approximately 14.2%. Gross profit margin remains robust, maintaining around 45-46% in recent years, indicating efficient management of production costs. The net profit margin has improved to 21% in 2024 from 17.9% in 2020, showcasing enhanced profitability. EBIT and EBITDA margins are also solid, with consistent improvements. Overall, CRISIL displays a healthy growth trajectory and operational efficiency, despite a dip in EBIT margin in 2023, which recovered in 2024.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio, decreasing from 0.15 in 2019 to 0.10 in 2024, indicating low leverage. Return on equity is impressive, increasing to 26.7% in 2024 from 26.5% in 2020, suggesting effective use of equity financing. The equity ratio is stable around 65%, reflecting a strong capital structure with substantial shareholder equity. CRISIL's financial stability is evident with increasing stockholders' equity and maintaining minimal debt levels.

Cash Flow

CRISIL exhibits robust operating cash flows that have grown consistently over the years, supporting its free cash flow generation. The operating cash flow to net income ratio is stable, reflecting efficient cash conversion. However, free cash flow growth has been volatile, declining by 17.5% from 2023 to 2024. Despite this, CRISIL's free cash flow to net income ratio indicates strong cash generation relative to earnings, highlighting operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.35B	32.60B	31.40B	27.69B	23.01B	19.82B
Gross Profit	14.86B	14.95B	13.92B	13.78B	11.39B	10.17B
EBITDA	10.50B	10.00B	9.75B	8.52B	7.33B	5.94B
Net Income	7.06B	6.84B	6.58B	5.64B	4.66B	3.55B
Balance Sheet
Total Assets	0.00	39.42B	33.15B	28.31B	25.04B	22.07B
Cash, Cash Equivalents and Short-Term Investments	13.69B	13.74B	11.82B	8.43B	7.42B	5.84B
Total Debt	0.00	2.50B	473.20M	834.60M	1.32B	2.24B
Total Liabilities	-25.65B	13.77B	11.25B	10.39B	9.25B	8.95B
Stockholders Equity	25.65B	25.65B	21.89B	17.92B	15.78B	13.12B
Cash Flow
Free Cash Flow	0.00	5.92B	7.17B	4.15B	3.80B	4.66B
Operating Cash Flow	0.00	7.65B	7.80B	4.56B	4.03B	5.00B
Investing Cash Flow	0.00	-3.86B	-3.27B	-616.40M	-882.50M	-3.23B
Financing Cash Flow	0.00	-4.42B	-4.08B	-3.68B	-2.91B	-2.65B

CRISIL Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4635.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CRISIL, the sentiment is Negative. The current price of 4635.45 is below the 20-day moving average (MA) of 4968.78, below the 50-day MA of 5211.78, and below the 200-day MA of 5158.55, indicating a bearish trend. The MACD of -123.67 indicates Positive momentum. The RSI at 24.73 is Positive, neither overbought nor oversold. The STOCH value of 6.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CRISIL.

CRISIL Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICRA	75 Outperform	₹62.31B	35.10	16.14%	0.93%	10.80%	21.15%
CRISIL	67 Neutral	₹338.99B	46.58	―	1.25%	6.03%	11.92%
CARERATING	66 Neutral	₹46.70B	32.74	17.02%	1.16%	21.24%	36.98%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

CRISIL Limited Corporate Events

CRISIL Publishes Notice on Share Transfer to IEPF

CRISIL Limited has announced the publication of a notice regarding the transfer of shares to the Investor Education and Protection Fund (IEPF). This move is in compliance with regulatory requirements, ensuring that unclaimed dividends and shares are transferred to the IEPF, which could impact shareholders who have not claimed their dividends for seven consecutive years. The notice has been published in prominent newspapers to inform shareholders and maintain transparency in the company’s operations.

Crisil Faces GST Penalty Demand, Plans Appeal

Crisil Limited has received an assessment order from the Office of the State Tax Officer in Tamil Nadu, demanding a penalty of INR 7,94,81,488 for the financial year 2020-21 under the GST Act, 2017, concerning GST on Export of Services. The company has stated that this demand will not materially impact its financials or operations and plans to file an appeal against the order.