CRISIL (CRISIL)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

Strengths

• Superior profitability: ROE of 25.25% and ROCE of 34.60% with negligible debt (D/E 0.10)
• Strong promoter backing and stability with 66.64% holding
• Healthy cash generation: free cash flow of ₹489 crore and latest quarter net profit of ₹242 crore
• Resilient financial health: Altman Z-score of 6.34 and Piotroski F-score of 7/9
• Consistent moderate growth: sales +11.94%, profit +11.98%, and 5-year revenue CAGR of 9.66%

Concerns

• Valuation is stretched: P/E of 41.78, P/B of 10.50, EV/EBITDA of 24.42, and PEG of 10.08
• No margin of safety: Graham Number of ₹988.99 versus price of ₹4,353.90, margin of safety -342.51%
• Low dividend yield of 0.57% provides limited downside support
• Growth is steady but moderate; the high multiple leaves little room for any earnings disappointment

AI Analysis

CRISIL is the rare combination of a durable franchise and a fortress-like balance sheet. It earns a remarkable 25.25% return on equity and 34.60% return on capital while carrying almost no debt—debt/equity is just 0.10. That is the hallmark of a business with intangible value, pricing power, and disciplined management. The promoter holding of 66.64% adds stability and alignment. Financially, it is very healthy: free cash flow of ₹489 crore, an Altman Z-score of 6.34, and a Piotroski F-score of 7/9 all point to a sound operating foundation. Growth is steady, not spectacular: sales rose 11.94% and profits 11.98%, while the five-year revenue CAGR is 9.66%. The latest quarter confirms the trend with ₹1,082 crore in sales and ₹242 crore net profit. So the business quality is not the question. The problem is the price. At ₹4,353.90, CRISIL trades at 41.78 times earnings, 10.50 times book value, and an EV/EBITDA of 24.42. With profit growth around 12%, the PEG ratio is 10.08. Even the Graham Number, a conservative anchor, stands at only ₹988.99, giving a margin of safety of minus 342%. The dividend yield is just 0.57%. In Mr. Market’s current mood, the stock has fallen from its 52-week high of ₹5,451, but it is still far from a bargain. I would rather miss a wonderful company than overpay for one. CRISIL belongs on a watchlist, not in a portfolio at this valuation. If the business keeps compounding and the price becomes sensible, it will deserve serious capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer