Mehabe score: 4 G Factor: 4 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 7.
Description
CRISIL Ltd is a globally diversified analytical Company providing ratings, research, risk and policy advisory services. CRISIL is India’s leading ratings agency and the foremost provider of high-end research to large banks and leading corporations.[1] Site:CRISIL Main Symbol:CRISIL
Stock trades at 3312.0, above its 50dma 2890.6. It also trades above its 200dma 2741.84. The stock remains bullish on techicals
The 52 week high is at 3498.00 and the 52week low is at 1741.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 29.10%
– has been maintaining a healthy dividend payout of 60.58%
Weakness
– Stock is trading at 15.31 times its book value
-The company has delivered a poor sales growth of 8.25% over past five years.
Competition
– The industry trades at a mean P/E of 38.2x. CRISIL trades at the industry’s max P/E of 56.03x. CRISIL trades at a P/E of 56.0x
– Industry’s mean G-Factor is 3.3 while the mean Piotski score is 8.0. CRISIL has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 9.2%. The max 1- month return was given by CRISIL: a return of 22.09 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 706.0 cr compared to Rs 597.0 cr for period ended Dec 2020, a rise of 18.3% .
vis-vis 154.0 for period ended Dec 2020 .
Operating Margins expanded 154.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 193.0 cr for period ended Dec 2021 and operating profit margin at 27.3 % for same period.
The EPS for quarter ended Dec 2021 is Rs 23.14 compared to Rs 15.5 for previous quarter ended Sep 2021 and Rs 15.16 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2301.0 cr for period ended Dec 2021 vis-vis sales of Rs 1982.0 cr for the period ended Dec 2020, a healthy growth of 13.9%. The 3 year sales cagr stood at 9.6%.
Net Profit reported at Rs 466.0 cr for period ended Dec 2021 vis-vis sales of Rs 355.0 cr for the period ended Dec 2020, rising 23.8%.
Company recorded a Net Profit CAGR of 8.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 29.0% over the last 3 Years. – The stock has given a return of 76% on a 1 Year basis vis-vis a return of 31% over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 23% vis-vis a compounded profit growth of 6% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 6.84% vis-vis 6.59% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 19.9% vis-vis 20.53% for Sep 2021
Conclusion
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 29.10%
– has been maintaining a healthy dividend payout of 60.58% – Stock is trading at 15.31 times its book value
-The company has delivered a poor sales growth of 8.25% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 2890.6 and is trading at 3312.0, thus bullish price action wise.
