Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating on CRISIL Ltd. indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: quality, valuation, financial trend, and technicals. While the rating was assigned on 22 September 2025, it is important to understand how the stock stands today, based on the latest available data as of 23 February 2026.
Quality Assessment
CRISIL Ltd. maintains a good quality grade, reflecting solid operational performance and a stable business model within the capital markets sector. The company’s return on equity (ROE) stands at a robust 25.3%, signalling efficient utilisation of shareholder funds. Despite this, the company’s long-term growth has been modest, with net sales growing at an annual rate of 12.99% over the past five years. This growth rate, while positive, is not particularly strong for a midcap company in the capital markets space, which may limit the stock’s appeal for growth-oriented investors.
Valuation Considerations
Valuation remains a key concern for CRISIL Ltd., as the stock is currently rated expensive. The price-to-book (P/B) ratio is notably high at 10.9, indicating that the market is pricing the stock at a significant premium relative to its book value. This elevated valuation is further underscored by a price-to-earnings growth (PEG) ratio of 3.6, suggesting that the stock’s price growth is outpacing its earnings growth by a considerable margin. While the stock’s valuation is in line with historical averages for its peer group, the premium may not be justified given the company’s flat financial trend and subdued sales growth.
Financial Trend Analysis
The financial trend for CRISIL Ltd. is currently flat, indicating limited momentum in earnings and revenue growth. The company reported flat results in the December 2025 quarter, which aligns with the broader trend of subdued financial performance. Despite this, profits have increased by 12% over the past year, a positive sign that has not yet translated into stronger stock returns. The stock’s one-year return as of 23 February 2026 is -2.89%, underperforming the broader BSE500 index, which has delivered 11.96% returns over the same period. This underperformance highlights the challenges the company faces in translating earnings growth into shareholder value.
Technical Outlook
From a technical perspective, CRISIL Ltd. is rated as mildly bullish. The stock has shown some short-term resilience, with a 1-day gain of 0.25% and a 1-week gain of 2.09%. However, the medium-term trend is less encouraging, with a 6-month decline of 15.20% and a 1-month drop of 4.51%. The mild bullishness suggests that while there may be some short-term buying interest, the overall technical momentum remains weak, reflecting investor caution amid valuation concerns and flat financial trends.
Stock Performance Overview
As of 23 February 2026, CRISIL Ltd.’s stock performance has been mixed. The year-to-date return stands at a modest 4.86%, but the stock has declined by 2.89% over the past year. This contrasts sharply with the broader market’s positive performance, underscoring the stock’s relative weakness. The lack of strong price appreciation despite profit growth suggests that investors remain wary of the company’s valuation and growth prospects.
Implications for Investors
For investors, the 'Sell' rating on CRISIL Ltd. signals caution. The combination of a high valuation, flat financial trends, and underwhelming stock performance relative to the market suggests limited upside potential in the near term. While the company’s quality metrics remain sound, the premium valuation and subdued growth outlook may not justify holding the stock at current levels. Investors seeking capital appreciation might consider alternative opportunities with stronger growth trajectories or more attractive valuations.
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Summary and Outlook
In summary, CRISIL Ltd.’s current 'Sell' rating by MarketsMOJO reflects a cautious view grounded in the stock’s expensive valuation, flat financial trend, and underperformance relative to the broader market. The company’s strong quality metrics and mild technical bullishness provide some support, but these factors are outweighed by concerns over growth and price levels. Investors should carefully weigh these considerations when evaluating CRISIL Ltd. for their portfolios, recognising that the rating and analysis are based on the most recent data as of 23 February 2026.
Sector and Market Context
Operating within the capital markets sector, CRISIL Ltd. faces competitive pressures and market dynamics that influence its growth and valuation. The midcap status of the company places it in a segment where investors often seek a balance between growth potential and risk. Given the current market environment and the company’s financial profile, the 'Sell' rating suggests that CRISIL Ltd. may not offer the risk-reward balance that investors typically seek in midcap capital markets stocks at this time.
Investor Takeaway
Ultimately, the 'Sell' rating serves as a signal for investors to reassess their holdings in CRISIL Ltd. and consider whether the stock aligns with their investment objectives and risk tolerance. Those prioritising capital preservation and valuation discipline may find this rating particularly relevant. Meanwhile, investors with a longer-term horizon or a higher risk appetite might monitor the company for any signs of improved financial momentum or valuation correction before making new commitments.
Conclusion
CRISIL Ltd.’s current standing as a 'Sell' rated stock by MarketsMOJO, based on a thorough evaluation of quality, valuation, financial trends, and technical factors, provides a clear framework for investors to understand the risks and opportunities associated with the stock. The rating, last updated on 22 September 2025, remains pertinent today given the latest data as of 23 February 2026, offering a comprehensive and timely perspective for informed investment decisions.
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