Crisil’s consolidated earnings from operations up 17.7% in Q3 571.0 crore as against 485 crore in the corresponding quarter of last year. The board also declared interim dividend of 9 per share (of face value of Rs.1) for the quarter ended September 30.
Yes Securities said, “CRISIL delivered 6% revenue beat and 13% earnings beat on our estimates for Q3 CY21 – 9 months revenue growth of 15% YoY and EBITDA margin (120 bps higher YoY) well ahead of our CY21 estimates Is.” one note.
According to the brokerage, the company maintained its margins close to the 26% mark despite a strong revival in domestic ratings revenue, continued traction in high-margin services within Irevana and increased employee costs amid increased offshoring of Greenwich operations.
Yes Securities continues to be bullish on CRISIL, based on dominant market share in India, diversified revenue mix, improving margins and strong corporate governance and improved ratings performance. “The improvement in earnings growth trajectory, higher dividend payouts and rising RoE will cause the valuation to re-rate from the current 36x CY23E P/E,” the note further said.
Near Brokerage. Have a Buy rating on the stock with a target price of 3,425 per share with a time horizon of approximately twelve months.
Indian top investors, as per BSE shareholding pattern Rakesh Jhunjhunwala He holds 2.89% stake or 21,06,750 shares in the company while his wife Rekha Jhunjhunwala holds CRISIL Ltd. as of September 2021. holding 2.57% stake or 18,68,250 shares.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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