Fundamental Analysis

CRISIL LTD. 

Ticker : 500092
BUY: Rs1,941.45
Target : Rs 2,150

CRISIL Limited is a leading India-based analytical company. The services provided by the company are ratings, data & research, analytics, and solutions. There are three segments within the business namely ratings, research & advisory. Infrastructure advisory and risk solutions business is conducted by CRISIL via its subsidiary, CRISIL Risk & Infrastructure Solutions Limited. On a consolidated quarterly front, its net sales grew by 11.27 per cent for the quarter ended September 2020 to Rs 484.99 crore from Rs 435.88 crore reported in the same period of the previous fiscal year. The company reported an operating profit of Rs 150.40 crore in Q2FY21, down by 4.11 per cent as compared to Rs 156.85 in Q2FY20. Its net profit was Rs 90.23 crore in Q2FY21, declining by 14.17 per cent as compared to the net profit of Rs 105.13 crore recorded in Q2FY20. In spite of a slight decline in profits, CRISIL has seen robust growth after the addition of corporate clients and an increase in securitisation mandates. Investors shifted their focus on the quality of ratings and analytical rigour, which has enhanced CRISIL's market leadership. Hence, we recommend a BUY.