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CRISIL Ltd Stock Analysis

Mid Cap
Evaluated by 5080 users | BSE: 500092 | NSE: CRISIL |
Ratings

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. The company is majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks,...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
CRISIL Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20
Return on Capital Employed 46.48%45.43%39.01%34.04%30.29%28.79%29.99%31.71%28.98%28.28%
Value Creation Index 3.412.652.121.721.421.301.401.541.32NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8079781,1111,2531,3801,5481,6581,7481,7321,982
Y-o-Y Gr. Rt.-21.2%13.6%12.9%10.1%12.1%7.2%5.4%-1%14.4%
Adjusted EPS (Rs.) 26.9530.6233.2236.3236.2537.1642.4947.8746.3447.05
Y-o-Y Gr. Rt.-13.6%8.5%9.3%-0.2%2.5%14.3%12.7%-3.2%1.5%
Book Value per Share (Rs.) 59.6575.3195.47118.89120.18138.2136.87148.23152.87173.14
Adjusted Net Profit 189215235259258265305345335342
Net Op. Cash Flow (Rs. Cr.) 260223254265270279291379446500
Debt to Cash Flow from Ops 00000000.010.010
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
CRISIL Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.5%7.5%6.1%14.4%
Adjusted EPS 6.4%5.4%3.5%1.5%
Book Value per Share 12.67.68.213.3
Share Price 6.4% -0.6% -1.2% 28.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20
Return on Equity (%) 46.4845.4339.0134.0430.2928.7929.9631.629.0327.5
Operating Profit Margin (%) 32.5233.5132.463128.9628.6528.426.9526.3925.77
Net Profit Margin (%) 23.42221.1320.6818.717.1318.3719.7419.3517.23
Debt to Equity 0000000000
Working Capital Days 857977758289100228363347
Cash Conversion Cycle -32-37-31-3273132342520
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 67.13%
Institutions 18.70%
Non-Institutions 14.17%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of CRISIL Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that CRISIL Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of CRISIL Ltd's performance infers:

CRISIL Ltd earnings have grown by 5.4%, whereas share price has depreciated -0.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of CRISIL Ltd share prices over the last 10 years. Here is what we found out:

CRISIL Ltd share price has depreciated 10.3% annually over the past ten years.

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. The company is majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide.

The company is India’s foremost provider of ratings, data, research, analytics, and

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. The company is majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics, and data to the capital and commodity markets worldwide.

The company is India’s foremost provider of ratings, data, research, analytics, and solutions. A strong track record of growth, culture of innovation and global footprint sets it apart. The company has delivered independent opinions, actionable insights, and efficient solutions to lacks of customers. The company’s businesses operate from India, the United States (US), the United Kingdom (UK), Argentina, Poland, China, Hong Kong, Singapore, and the United Arab Emirates (UAE).

The company’s clients range from micro, small and medium companies to large corporates, investors, and top global financial institutions. It works with commercial and investment banks, insurance companies, private equity players and asset management companies globally. It also work with governments and policy makers in the infrastructure space in India and in other emerging markets.

Business area of the company

The company is engaged in providing credit ratings including bond ratings, bank loan ratings, SME ratings, other grading services. Also company provide Research services include Global Research & Analytics activities divided into financial research, risk & analytics and corporate research, and India research activities comprising economy & industry research, funds & fixed income research, and equity & company research.

The company’s business include:

  • Ratings
  • SME Solutions
  • India Research
  • Global Research & Analytics
  • CRISIL Coalition
  • Infrastructure Advisory
  • BI & Risk Management
  • Global Analytical Center

History and Milestone

  • 1987: CRISIL, India's first credit rating agency, is incorporated on the 29th day of the month, promoted by the erstwhile ICICI Ltd along with UTI and other financial institutions. Mr. N Vaghul and Mr. Pradip Shah are CRISIL's first Chairman and Managing Director, respectively.
  • 1988: CRISIL commences operations within a year of its incorporation on January 1. The business environment is far from promising for the one-year old - the lending rates are fixed, and India has no such thing as a corporate bond market as yet. As of now, credit rating is an idea that's far ahead of its times.
  • 1990: CRISIL launches the ‘CRISILCARD Service’ to provide comprehensive information and analytical opinion on India's corporate entities
  • 1991: Despite the odds, and the initial lack of market acceptance of credit ratings, CRISIL's operations are now well established. It begins to acquire brand identity, with a reputation for analytical rigour and independence.
  • 1992: CRISIL offers technical assistance and training to help set up Rating Agency Malaysia Berhad, and MAALOT - the Israeli securities rating company.
  • 1993: CRISIL's IPO is a whopping success - it's 20,00,000 shares, sold at a premium of Rs.40 per share, are oversubscribed by 2.47 times.
  • 1994: Mr. R Ravimohan takes over as CRISIL's Managing Director on the first day of the month.
  • 1995: In partnership with National Stock Exchange of India Ltd. (NSEIL), CRISIL develops and launches the CRISIL500 Equity Index, helping investors clue in on stock price movements.
  • 1996: CRISIL forges a strategic business alliance with Standard & Poor's (S&P) Ratings Group. The tie-up is part of CRISIL's strategy to develop its skills and processes.
  • 1997: S&P acquires a 9.68 % stake in CRISIL on May 8, 1997. The alliance with the world's leading rating agency adds a new dimension to CRISIL's methodologies. It provides CRISIL with exposure to the international rating markets and to S&P's rating processes.
  • 1998: CRISIL sets up India Index Services Ltd (IISL), a joint venture with NSEIL, to provide a variety of indices and index -related services and products to India's capital markets.
  • 1999: CRISIL's proprietary Risk Assessment Model (RAM) becomes the banking industry standard. Given the heightened regulatory focus on banks' risk management practices, RAM serves as a customised credit rating model for the banks.
  • 2000: CRISIL acquires the business and brand INFAC of Information Products and Research Services (India) Pvt. Ltd. on March 15. INFAC is a leading provider of research to India's financial sector. The acquisition strengthens CRISIL's research business, and makes it India's leading provider of integrated research.
  • 2000: CRISIL launches the CRISIL Composite Performance Ranking (CRISIL~CPR) to provide performance evaluation standards and investment decision support to mutual fund houses, distributors, and investors.
  • 2001: CRISIL sets up subsidiary, Global Data Services of India Ltd. to standardise published financial data for analysis.
  • 2001: CRISIL launches the CRISIL Young Thought Leader (CYTL) Award to attract outstanding talent and provide a platform to India's future business leaders to showcase their views.
  • 2001: CRISIL launches Mutual Fund Awards in association with CNBC-TV18 - a benchmark award for India's best performing mutual funds.
  • 2002: MarketWire - to provide real-time financial news services to help clients make pricing and investment related decisions.
  • 2002: CRISIL sets up The Centre for Economic Research (CCER) to apply economic principles to live business situations.
  • 2003: CRISIL sets up its investment and risk management services group to offer integrated risk management solutions and advice to banks and corporates.
  • 2003: CRISIL follows it up with its first overseas acquisition - EconoMatters Ltd (later the Gas Strategies Group), a London-based company providing natural gas related consulting, information and training, and conference-organising services.
  • 2004: CRISIL expands its global reach further with an equity investment in the world's first regional rating agency, the Caribbean Information and Credit Rating Services Limited (CariCRIS), which CRISIL also helps set up.
  • 2004: The CRISIL Awards for Excellence in Municipal Initiatives are instituted to recognise outstanding programmes in urban development.
  • 2005: The strategic alliance with S&P since 1996 culminates in S&P's acquiring majority control of CRISIL.
  • 2005: CRISIL makes its second overseas acquisition of Irevna, thus adding equity research to its wide canvas of work. Irevna is a leading global equity research and analytics company.
  • 2005: CRISIL launches Small and Medium Enterprise (SME) Ratings to serve the specialised needs of the SME sector.
  • 2005: CRISIL partners CNBC-TV18 for Emerging India Awards - the first platform to recognise and reward the achievements of India's Small & Medium Enterprises.
  • 2005: Irevna is ranked globally as the top Investment Research Outsourcing Firm by The Black Book of Outsourcing.
  • 2006: CRISIL launches IPO grading services to provide investors with independent, reliable, and consistent assessments of the fundamental strengths of new public issues.
  • 2007: The Pension Fund Regulatory and Development Authority awards CRISIL with a prestigious mandate to assist in the selection of Fund Managers under the New Pension Scheme.
  • 2007: CRISIL assigns India's first Bank Loan Rating under the Reserve Bank of India's Basel-II related regulations.
  • 2007: Roopa Kudva takes over as Managing Director and CEO of CRISIL, following Mr. Ravimohan's appointment as Managing Director and Region Head of S&P, South Asia.
  • 2007: Black Book of Outsourcing ranks Irevna the No. 1 Financial Services Industry Analytics Outsourcing Firm.
  • 2008: CRISIL launches Complexity Levels, an initiative to strengthen India's capital markets by providing greater transparency to investors.
  • 2008: CRISIL's revenue crosses Rs.5 billion in 2008.
  • 2009: SME Ratings group assigns its 5000th SME rating.
  • 2009: Irevna is ranked globally by The Black Book of Outsourcing as the No. 1 Investment Research and Analytics Outsourcing Firm.
  • 2009: CRISIL captures about half of India's bank loan rating market share.
  • 2009: CRISIL Research launches Independent Equity Research (IER).
  • 2010: CRISIL moves into a new, corporate head office - the new CRISIL House - at Powai, Mumbai. It is a state-of-the-art, green building.
  • 2010: CRISIL SME Ratings crosses its 15,000th SME rating.
  • 2010: CRISIL launches CRISIL Real Estate Star Ratings.
  • 2011: CRISIL launches Education Grading, beginning with business schools.
  • 2010: CRISIL acquires Pipal Research, further strengthening its leadership in the KPO industry.
  • 2011: CRISIL Rating enhances access to funding for SMEs; announces 20,000th SME Rating.
  • 2011: CRISIL Ratings launches Solar grading.
  • 2011: CRISIL Research launches Gold and Gilt Index.
  • 2011: CRISIL Global Research & Analytics receives NASSCOM Exemplary Talent Practices Award.
  • 2012: CRISIL announces its 25,000th SME rating.
  • 2012: CRISIL acquires UK-based Coalition, a company providing high-end analytics to global investment banks.
  • 2012: CRISIL transforms the lives of 1000 rural citizens through 'Pragati', a series of financial awareness workshops.
  • 2012: CRISIL launches 'Doing what is right: The CRISIL Story' - a book on the company's 25-year evolution, on December 19.
  • 2012: CRISIL assigns its 10,000th bank loan rating.
  • 2013: CRISIL launches CRISIL Inclusix, India's most comprehensive financial inclusion index which accurately measures the extent of financial inclusion in the country, right down to each of the 632 districts.
  • 2013: CRISIL launches CRISIL Foundation, a platform for achieving its twin goals of increasing financial awareness and conservation of the environment.
  • 2014: CRISIL rates India's first Commercial Mortgage Backed Securities.
  • 2014: CRISIL signs an MoU with the Indian Institute of Management, Ahmedabad (IIM-A) to set up a 'CRISIL Chair of Financial Markets' at the institute.
  • 2014: CRISIL introduces Fund Management Capability Ratings for the mutual fund.
  • 2015: Ms. Ashu Suyash takes over as Managing Director and CEO of CRISIL on 1.6.2015.
  • 2015: CRISIL RE launched - a programme focusing on environment conservation through employee volunteering.
  • 2015: CRISIL rates an innovative partially guaranteed debenture issue of a passive infrastructure SPV backed by first-loss partial guarantee from IIFCL.
  • 2016: CRISIL launches the first hybrid issuance ratings in the insurance sector.
  • 2016: CRISIL Certified Analyst Program (CCAP) launches its 10th batch, in association with Narsee Monjee Institute of Management Studies (NMIMS) as the academic partner.
  • 2016: CRISIL features in list of the top 100 Best companies in India for women by Avtar Group and Working Mother Publication.
  • 2016: CRISIL Foundation launches the first edition of CRISIL CSR Year Book, an annual publication analysing corporate spends for CSR, trends in driving social impact, and compliance with Section 135 on CSR in the new Companies Act, 2013.
  • 2016: CRISIL launches first Infrastructure Rating on the ‘Expected Loss’ scale.
  • 2016: CRISIL Foundation is selected by the Reserve Bank of India to receive financial assistance under its Depositor Education & Awareness Fund Scheme.
  • 2017: CRISIL celebrates its 30-year anniversary and continues to be driven by its mission of making markets function better.
  • 2017: CRISIL GR&A launches SMART, an innovative financial research platform powered by cognitive automation that enables research analysts to emulate certain tasks and optimize decision making for many others.
  • 2017: CRISIL launches smefirst, an online platform that allows SMEs easy access to ratings and other related services.
  • 2017: CRISIL buys 8.9% stake in CARE Ratings.
  • 2017: CRISIL launches India’s first infrastructure investability index
  • 2017: Small Industries Development Bank of India (SIDBI) and CRISIL sign MoU to launch India’s first MSME Sentiment index named CriSidEx
  • 2017: CRISIL enters into a definitive agreement to acquire 100% stake in Pragmatix Services Private Limited, a data analytics company
  • 2017: CRISIL launched rankings for unit linked insurance plans (ULIPs)
  • 2017: CRISIL Ratings was awarded the best credit rating agency at the ‘Capital Market Intermediaries Excellence Awards 2016-17’ by ASSOCHAM, in association with SEBI’s National Institute of Securities Markets (NISM)
  • 2017: For the second time in a row, CRISIL featured in list of the top 100 Best companies in India for women
  • 2018: CRISIL launched India's first index to benchmark performance of investments of foreign portfolio investors (FPI) in the fixed-income market, in both rupee and dollar versions
  • 2018: Honourable Finance minister Shri Arun Jaitley today launched CriSidEx, India’s first sentiment index for micro and small enterprises (MSEs) developed jointly by CRISIL and SIDBI.
  • 2018: CRISIL has announced the launch of WE-Check, a digital verification and assessment service dedicated to women entrepreneurs, in association with NITI Aayog.
  • 2018: In the past decade through fiscal 2018, India’s mutual fund industry has been growing at twice the pace of its global peers.
  • 2018: For the third time in a row, CRISIL featured in list of the top 100 Best companies in India for women
  • 2018: CRISIL has been awarded the National CSR Award 2018 in the category ‘CSR in Challenging Circumstances, North East’ for its flagship project Mein Pragati Assam. The award was conferred by the President of India, Ramnath Kovind.
  • 2018: CRISIL has featured on the list of Working Mother Magazine and AVTAR 100 Best Companies for Women in India for the fourth consecutive year. Ms. Subha Barry, President, Working Mother Media and Dr. Saundarya Rajesh, Founder & President, Avtar Group presented the award to Amita Abichandani, Associate Director, CRISIL Foundation at the awards ceremony.
  • 2020: CRISIL has completed the acquisition of 100% stake in Greenwich Associates LLC, a leading provider of proprietary benchmarking data, analytics and qualitative, at a consideration of $40 million.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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