Why is CRISIL falling/rising?

Sep 23 2025 10:01 PM IST
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As of 23-Sep, CRISIL Ltd. is facing a decline in its stock price, currently at 4,854.85, down 1.91% and underperforming against benchmarks. The stock shows a bearish trend with reduced investor interest and concerns over its valuation despite a high return on equity.
As of 23-Sep, CRISIL Ltd. is experiencing a decline in its stock price, currently at 4,854.85, reflecting a decrease of 94.6 points or 1.91%. The stock has been underperforming, having fallen for the last four consecutive days, resulting in a total decline of 4.29% during this period. It is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Additionally, the stock's delivery volume has decreased significantly, down by 44.6% compared to the 5-day average, suggesting reduced investor interest. While the company boasts a high return on equity (ROE) of 29.95% and a low debt-to-equity ratio, its long-term growth prospects appear poor, with net sales and operating profit growth rates of only 13.44% and 17.68%, respectively, over the past five years.

In the broader market context, CRISIL's short-term performance has been notably weaker than the benchmark, with a 1-week return of -3.83% compared to the Sensex's -0.34%. This underperformance is compounded by the company's flat results reported in June and a high price-to-book value ratio of 13.8, indicating that the stock may be overvalued relative to its earnings growth. Despite a positive return of 4.41% over the past year, the company's profits have only risen by 12%, leading to a high PEG ratio of 4.1, which further raises concerns about its valuation. Overall, these factors contribute to the stock's declining trend amidst a market that has shown some resilience.
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