Domestic brokerage and research firm Anand Rathi believes that CRISIL will maintain the growth momentum of its business, driven by its investments in talent and technology, improving economic activity, new product offerings and solutions.
The brokerage house has started its coverage CRISIL Shares with a buy rating and have a twelve month target price 4,000 per share. Shares of CRISIL have gained over 90% in the last year while have gained almost 24% in the last one month.
“CRISIL’s revenue is diversified both in terms of business segment as well as geography. Revenue from the overall research segment grew 20.3% in FY2011, driven by accelerating economic activity coupled with increased traction for data, insights and capital markets research offerings. CRISIL’s profits are mainly contributed by the research and ratings segment,” the brokerage’s note highlighted.
CRISIL’s revenue has grown at around 10% CAGR in the last 3 years. With improving economic activity, adding customers, new product offerings and solutions. Anand Rathi estimates that the momentum will continue and revenues will grow at 12% compound annual growth rate (CAGR) over the next two years. The brokerage also expects the company to maintain stable operating margins.
According to Anand Rathi, supply chain dynamics, expected capex cycle revival, accelerated digital transformation to act as positive triggers for the company, while evolving regulatory environment, intense competition, inflation and reputation risk act as major risks. can do.
As per the recent shareholding chart on BSE, a few investors Rakesh Jhunjhunwala CRISIL holds 2.92% stake while his wife Rekha Jhunjhunwala holds 2.57% equity in the company as of December 2021.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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