Why is CRISIL falling/rising?

Sep 22 2025 09:49 PM IST
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As of 22-Sep, CRISIL Ltd. is facing a decline in stock price, currently at 4,949.45, with a bearish trend indicated by trading below key moving averages. Despite strong management efficiency, the company struggles with poor long-term growth and an expensive valuation, leading to cautious investor sentiment.
As of 22-Sep, CRISIL Ltd. is experiencing a decline in its stock price, currently at 4,949.45, reflecting a decrease of 38.2 points or 0.77%. The stock has been losing value for the last three days, with a total drop of 2.43% during this period. Additionally, CRISIL is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Despite a high management efficiency with a return on equity (ROE) of 29.95% and a low debt-to-equity ratio, the company faces challenges with poor long-term growth, as evidenced by its net sales growth of only 13.44% over the last five years. Furthermore, the stock's valuation appears expensive with a price-to-book value of 14.1, and while it has generated a return of 6.02% over the past year, its profits have only risen by 12%, leading to a high PEG ratio of 4.2.

In the broader market context, CRISIL's short-term performance has been underwhelming compared to the benchmark, as it has declined by 1.47% over the past week while the Sensex has increased by 0.46%. This underperformance is further highlighted by a 6.77% drop over the past month against a 1.05% rise in the Sensex. Although there has been a rise in investor participation, with delivery volume increasing by 32.4% against the 5-day average, the overall sentiment remains cautious due to the company's flat results and concerns regarding its long-term growth potential.
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