This Stock Is A Value Pick For Long-Term Investors

Broking firm, Anand Rathi Research has a buy on the stock of CRISIL and believes that it is a value pick for long-term investors.

Top rating agency owned by S&P

Crisil Limited is India's foremost provider of ratings, data, research, analytics and solutions with strong track record of growth and global footprint. According to Anand Rathi, the company delivers independent opinions, actionable insights and efficient solutions to over 100,000 customers. The company has presence in India, the United States, the United Kingdom, Argentina, Poland, China, Hong Kong, Singapore, Australia, Switzerland, Japan and the United Arab Emirates (UAE).
"The company is majority owned by S&P Global Inc, the world's foremost provider of credit ratings, benchmarks and analytics in the global capital and commodity markets, offering ESG solutions, deep data, and insights on critical economic, market and business factors,"m the brokerage has said.

Dominance in the ratings business

The company's market-leading ratings, benchmarks, analytics and solutions empower lenders, borrowers, issuers, investors, regulators and intermediaries to make decisions with conviction. It helps clients manage and mitigate risks, drive sustainability, make pricing and valuation decisions, reduce time to market, generate more revenue and drive sustainable growth. By helping shape public policy on infrastructure in emerging markets, CRISIL helps catalyse economic growth and development in these geographies.

According to Anand Rathi, in the advisory business, the company is a leading advisor to governments, multilateral agencies, investors, and large public and private sector firms. CRISIL Infrastructure Advisory provides a comprehensive range of advisory services in urban, energy and natural resources, transport and logistics, and infrastructure financing across India and other emerging countries.

Stock has a target price of Rs 4000

CRISIL's consolidated income from operations for the quarter ended December 31, 2021, rose 18.2% to Rs 7,060 million, compared with Rs 5,972 million in the corresponding quarter of the previous year. CRISIL's consolidated income from operations for the year ended December 31, 2021, rose 16.1% to Rs 23,007 million, compared with Rs 19,818 million in the corresponding period of the previous year.

"We believe the company will maintain its business growth momentum, driven by its investments in talent and technology, recovery in economic activities, new product offerings and solutions. The company is trading at 52x its CY21 earnings and 48.3x its CY22E earnings. We initiate our coverage on CRISIL with a BUY rating and a target price of Rs 4,000 per share," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Anand Rathi. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.