Crisil Ltd. share price target

We retain BUY on CRISIL with TP revised upwards to Rs3,700. The upward revision to our TP follows visibility for a superior revenue/earnings growth over CY21-23E (also evident from consecutive quarters of robust growth) as each of the revenue segments are set to fire on all fronts. Our affirmative stance is backed by the favorable macro's that bodes well for the rating business, and synergies/leverage benefit from the acquisition, products, and solutions services, that will aid in robust growth for the research division. Diversified revenue mix, levers for margin expansion, and solid return ratios have seen CRISIL's valuation multiplies stay at a premium and to its peers. With...

We initiate coverage on CRISIL with BUY and target price of Rs2,260. This best-in-class industry leader delivers a diversified revenue mix, superior margins, solid return ratios, and free-cash-flow yield, unique to very few companies. Flight to quality has seen investors/borrowers prefer CRISIL, propelling it to be the best play in an otherwise crowded rating space. Led by new products and solutions, and acquisitions, CY20 saw the research segment report 20%+ YoY growth, highest since CY12. With improving macros, market share gains, cost rationalization, and synergies from acquisitions, we see CRISIL's revenue/earnings growth rates accelerate over CY20-22E. As a result, we...

the entity) and a diversified business model. Further, its premium brand value, revival in research vertical, increasing traction in advisory segment and improvement in the number of issuance for bank loan ratings would enable to drive growth. On valuation front, we believe its revenue and pat has a...

CRISIL Ltd Q3CY18 results Comment Revenue fell by 2.43% to Rs. 425.46 Cr in Q3CY18 when compared to the previous quarter. On the other hand, it rose by 3.84% when compared with Q3CY17.

CRISIL's consolidated revenue grew by 7.1% YoY in Q2CY18 on the back of robust growth in advisory segment (38% YoY). Though EBITDA margin declined by 75 bps YoY to 24.6%, net profit increased by 14.7% YoY on account of favourable forex movement. We expect consolidated revenue to grow at a CAGR of 12 % over CY17-19E led by broad based growth across segments. With improvement in rating business, we expect EBITDA margin to...

CRISIL Ltd Q1CY18 results Comment Revenue decreased by 4.75% to Rs. 419.95 Cr in Q1CY18 when compared to the previous quarter. On the other hand, it rose by 4.63% when compared with Q1CY17. The Sales had been increasing from Q2CY17 to Q4CY17.

Revenue at ~Rs 4.4 bn grew 3% YoY in Q4 (CY17 at ~7%). Rating revenue declined ~2% YoY due to muted BLR and SME segment. Negative operating leverage (employee costs and profession fee) led to margin decline of ~300 bps in Q4. Lower depreciation and tax burden led to PAT growth of 5% YoY.

CRISIL Ltd Q2CY17 results comment Revenue grew by 1.28% to Rs. 406.5 Cr in Q2CY17 when compared to the previous quarter

Revenue decreased by 5.77% to Rs. 401.35 Cr in Q1CY17 when compared to the previous quarter. On the other hand it rose by 11.92% when compared with Q1CY16.

CRISIL's 11.9% YoY Revenue growth in Q1CY17 was driven by pick-up in the research business while Operating margins came in largely in-line at 30.3%. However, adverse forex impact of Rs 11.9 cr led to flattish profit growth of Rs 73.3 cr. Though sluggish credit off-take and diminished prospects of SME segment due to government subsidy cut for FY18 could impact business in the near-term, we continue to like Crisil for it strong parentage, superior return ratios, and healthy dividend pay-outs.

CRISIL Ltd is India's leading credit rating, research, risk & policy advisory company having pioneered the concept of credit rating in India in 1987. S&P, the world's leading credit rating agency by market share, is its major shareholder (67%).

Economic recovery to boost revenues across business segments: The rating revenues witnessed 8% growth in 2014 compared to last year. Research andadvisory revenues were up 16% and 14% respectively. Research segment profitability grew by 6% on account of improved performance by GR&A (Global Research & Analytics). Ratings profitability was marginally up by 1% due to sluggish business environment. The advisory segment witnessed a fall in profitability of around 12% on account of challenging business environment. Going forward, the consolidated revenues are likely to grow on the back of debt issuances by corporations and financial institutions which in turn can improve the businesses for CRISIL.