Share price of this mid-cap stock and a global analytics company moved up by 6% on BSE to hit an intraday high at Rs. 4,615 in the morning trading session of Friday, after its wholly-owned subsidiary received a license from SEBI to offer ESG Ratings.
With a market capitalisation of Rs. 32,729 crore, at 12:29 a.m. the shares of CRISIL Limited were trading in the green at Rs. 4,509, up by 3.6 percent.
According to the recent regulatory filings with the stock exchanges, CRISIL ESG Ratings & Analytics Limited, a wholly-owned subsidiary of CRISIL Ratings Limited, has received the license today from SEBI to commence the business of ERP and has executed the Business Transfer Agreement.
Securities and Exchange Board of India (SEBI) has given approval to CRISIL ESG Ratings to provide environmental, social and governance (ESG) ratings.
The approval comes when ESG disclosures have been improving and there is increasing realisation in the financial markets on the need for independent ESG ratings that will help issuers and investors make decisions and channel funds towards the Indian economy’s long-term growth.
CRISIL Limited launched its ESG ‘scoring’ business in the year 2021 and gradually expanded coverage from 225 to nearly 1,000 companies across about 65 sectors, and this business will now be transferred to CRISIL ESG Ratings.
In July 2023, SEBI stated that only certified entities can provide ESG rating services. Even overseas agencies that provide ESG rating services would be required to get SEBI certification in order to provide services to entities located in India.
CRISIL ESG ratings will assist investors in measuring and monitoring ESG risks in their portfolios, as well as identifying investment opportunities that take into account the long-term sustainability of businesses, in addition to the traditional investment concerns.
In terms of financials, the revenue from operations of CRISIL Limited grew by around 3.2 percent from Rs. 715 crore in Q4 FY22-23 to Rs. 738 crore in Q4 FY23-24. However, the net profit decreased by 5.5 percent to Rs. 138 crore in Q4 FY23-24 from Rs. 146 crore in Q4 FY22-23.
As of March 2024, FIIs hold 7.2 percent of the shares, whereas DIIs hold 12.94 percent of the shares in the company, aggregating to 20.14 percent of the institutional holdings.
The company has delivered positive returns of about 15.6 percent in the last six months, whereas nearly 28.6 percent in the last one year. So far in 2024, it has given around 4.6 percent of positive returns.
CRISIL Limited is a leading, agile and innovative global analytics company and is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, a culture of innovation, and a global footprint.
The company is majority-owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
