1. At a Glance
CRISIL Ltd is not just another analytics company—it’s India’s AAA-rated brainiac that tells others what rating they deserve. With an ROCE of 35%, debt-free status, and 60% dividend payout, this is what a grown-up stock looks like.
2. Introduction with Hook
If the Indian financial markets were a high school classroom, CRISIL would be the class monitor, exam checker, and the tutor’s pet, all rolled into one.
- ₹43,000+ Cr Market Cap
- EPS: ₹96.6
- Ratings Biz contributes 51% of profits, only 28% of revenue
That’s like working 2 hours a day and still taking home half the salary. Respect.
It’s a clean, lean, dividend-paying machine… that’s also the favorite cousin of S&P Global, which owns 66.64% of it. Nepo baby? Yes. Underperformer? Never.
3. Business Model (WTF Do They Even Do?)
CRISIL wears many hats, and none are cheap:
- Ratings (28% Revenue): India’s leading credit ratings agency, rating 35,000+ firms.
- Research (60% Revenue): High-end custom research for global banks, FIIs, and policymakers.
- Risk & Advisory (12% Revenue): Think tank stuff—policy work, risk frameworks, ESG scores, etc.
And oh, it created a separate Ratings subsidiary in 2020 to meet SEBI norms. Because when regulators knock, CRISIL listens.
4. Financials Overview
(FY24 & TTM Snapshot in ₹ Cr)
| Metric | FY23 | FY24 | TTM |
|---|---|---|---|
| Revenue | 3,140 | 3,260 | 3,335 |
| EBITDA | 882 | 911 | 950 |
| Net Profit | 658 | 684 | 706 |
| EPS (₹) | 90.06 | 93.54 | 96.57 |
| Dividend Payout % | 60% | 60% | ~60% |
| ROE | 28% | 28% | 27.8% |
Margins are stickier than a 5-star Airbnb host:
- EBITDA Margin: ~28%
- Net Profit Margin: ~21%
5. Valuation
We ran a 3-way stress test to find the “not-overhyped” range.
- PE-based (25x – 40x TTM EPS ₹96.6)
FV Range = ₹2,415 – ₹3,864 - EV/EBITDA (18x – 25x on ₹950 Cr)
FV Range = ₹17,100 Cr – ₹23,750 Cr = Per Share ₹2,442 – ₹3,393 - DCF (Conservative Growth: 10%)
FV ~ ₹3,000 – ₹3,500 per share
Current Price: ₹5,973
Verdict: Price is running way ahead of earnings. Likely riding the “premium + monopoly + foreign daddy” narrative.
6. What’s Cooking – News, Triggers, Drama
CRISIL’s timeline since last Diwali is spicier than your neighborhood chaat stall:
- Mergers galore: Absorbed Bridge to India Energy & sold Peter Lee to CRISIL Australia.
- ESG push: Spun off ESG Ratings as a standalone. Got SEBI’s nod.
- MSME Play: Bought into Online PSB Loans for ₹33 Cr to ride the fintech wave.
- Leadership churn: Jan Larsen (Global Research) and CFO Ewout exited.
It’s expanding across green finance, energy transition, digital lending, and even policy consulting. Basically, doing everything except slouching.
7. Balance Sheet
| Item | FY23 | FY24 |
|---|---|---|
| Equity Capital | 7 | 7 |
| Reserves | 2,182 | 2,558 |
| Borrowings | 47 | 250 |
| Total Liabilities | 3,297 | 3,942 |
| Fixed Assets | 635 | 976 |
| Investments | 1,056 | 1,454 |
| Other Assets | 1,576 | 1,457 |
- Borrowings increased for the first time in a decade.
- Still extremely light on capex.
- Reserves = bigger than entire market cap of many NSE-listed firms.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | 780 | -326 | -408 | 47 |
| FY24 | 765 | -387 | -442 | -64 |
- Huge free cash flow.
- Every year ends with a massive dividend, keeping investors grinning like they hit jackpot at a Goa casino.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | TTM |
|---|---|---|---|
| ROCE | 41% | 36% | 35.6% |
| ROE | 30% | 28% | 27.8% |
| OPM | 28% | 28% | 28% |
| Debtor Days | 78 | 62 | 61.6 |
| Working Cap Days | -5 | -30 | -30 |
- Negative working capital = customers pay early, vendors wait.
- ROCE numbers look like exam scores of IIT-JEE toppers.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| FY22 | 2,769 | 730 | 564 | 77.25 |
| FY23 | 3,140 | 882 | 658 | 90.06 |
| FY24 | 3,260 | 911 | 684 | 93.54 |
| TTM | 3,335 | 950 | 706 | 96.57 |
- Steady and safe.
- Revenue CAGR ~10% for 10 years = no boom-bust cycles here.
11. Peer Comparison
| Company | CMP | PE | ROCE | Div Yield | PAT (Cr) | Sales (Cr) |
|---|---|---|---|---|---|---|
| CRISIL | 5,973 | 61.8 | 35.6 | 0.94% | 706 | 3,335 |
| ICRA | 4,150 | 43.1 | 24.8 | 0.65% | 298 | 1,184 |
| CARE Ratings | 1,093 | 32.7 | 22.1 | 1.2% | 165 | 620 |
- CRISIL commands a premium PE for its research + global presence + clean track record.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2023 | Mar 2024 | Jun 2024 |
|---|---|---|---|
| Promoters | 66.69% | 66.64% | 66.64% |
| FIIs | 6.90% | 7.17% | 7.69% |
| DIIs | 13.16% | 12.49% | 12.38% |
| Public | 13.27% | 13.69% | 13.28% |
- Controlled by S&P Global
- Strong FII + DII presence
- 62,000+ shareholders = retail trust already built in
13. EduInvesting Verdict™
CRISIL isn’t just a stock—it’s a benchmark. It doesn’t chase trends, it creates them. With a moat in ratings, research, and policy advisory, this is the only financial services company that actually grades others and gets paid handsomely for it.
But here’s the kicker:
At a PE of 60+, you’re paying premium prices for a premium company—like ordering Dom Pérignon in a wine bar where Sula would do just fine.
For long-term compounding fans?
CRISIL is the royal Enfield of Indian finance—old, reliable, loved by institutions, and rarely cheap.
Metadata
– Written by EduInvesting Team | July 13, 2025
– Tags: CRISIL, Ratings Agency, Research, S&P Global, Dividend Stock, High ROE, Indian Finance, Policy Advisory
